DRIP vs SPY

DRIP vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricDRIPSPYWinner
Expense Ratio1.01%0.09%
AUM$106M$814.4B
Dividend Yield3.97%1.01%
Holdings8505
YTD Return-61.26%+12.60%
1Y Return-60.13%+20.83%
3Y Return (annualized)-27.90%+20.98%
5Y Return (annualized)-46.20%+12.56%
Volatility (annualized)91.2%15.3%
Max Drawdown-100.0%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionMay 28, 2015Jan 22, 1993

DRIP vs SPY Performance

Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DRIP returned -60.13% while SPY returned +20.83%. Year to date, DRIP is down 61.26% versus a gain of 12.60% for SPY.

Over three years, DRIP compounded at -27.90% per year against +20.98% for SPY; over five years the annualized figures are -46.20% and +12.56% respectively. Across the full 11-year window we track, SPY has the edge at +8.79% annualized vs -42.06%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DRIP has been the more volatile fund, with annualized monthly volatility of 91.2% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -100.0% for DRIP and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at -0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DRIP charges 1.01% per year while SPY charges 0.09%. On a $10,000 position that is $101 vs $9 annually, a gap of $92 per year that compounds over a long holding period. On income, DRIP currently yields 3.97% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

DRIP and SPY share 0 holdings out of 507 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, DRIP or SPY?

DRIP has an expense ratio of 1.01% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, DRIP or SPY?

Over the past year DRIP returned -60.13% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -42.06% vs +8.79% for SPY. Past performance does not guarantee future results.

Which is riskier, DRIP or SPY?

DRIP has been the more volatile fund at 91.2% annualized versus 15.3% for SPY. Worst drawdown: DRIP -100.0% vs SPY -56.5%.

Should I hold both DRIP and SPY?

DRIP and SPY have a monthly-return correlation of -0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DRIP and SPY?

DRIP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, DRIP or SPY?

DRIP yields 3.97% while SPY yields 1.01%, so DRIP currently pays the higher dividend yield.

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