DRN vs SPY
Direxion Daily Real Estate Bull 3X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. DRN delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | DRN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.09% | |
| AUM | $49M | $789.1B | |
| Dividend Yield | 1.97% | 1.01% | |
| Holdings | 36 | 505 | |
| YTD Return | +31.87% | +14.47% | |
| 1Y Return | +22.31% | +21.96% | |
| 3Y Return (annualized) | +9.79% | +21.70% | |
| 5Y Return (annualized) | -12.13% | +13.30% | |
| Volatility (annualized) | 53.3% | 15.3% | |
| Max Drawdown | -86.3% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jul 16, 2009 | Jan 22, 1993 |
DRN vs SPY Performance
Direxion Daily Real Estate Bull 3X ETF (DRN) 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 DRN returned +22.31% while SPY returned +21.96%. Year to date, DRN is up 31.87% versus a gain of 14.47% for SPY.
Over three years, DRN compounded at +9.79% per year against +21.70% for SPY; over five years the annualized figures are -12.13% and +13.30% respectively. Across the full 17-year window we track, DRN has the edge at +11.82% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DRN has been the more volatile fund, with annualized monthly volatility of 53.3% 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 -86.3% for DRN 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DRN charges 0.96% per year while SPY charges 0.09%. On a $10,000 position that is $96 vs $9 annually, a gap of $87 per year that compounds over a long holding period. On income, DRN currently yields 1.97% against 1.01% for SPY.
Holdings Overlap
DRN and SPY share 31 holdings out of 505 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DRN or SPY?
DRN has an expense ratio of 0.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, DRN or SPY?
Over the past year DRN returned +22.31% vs +21.96% for SPY, so DRN leads on 1-year performance. Over the longest common window we track (17 years), DRN annualized +11.82% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, DRN or SPY?
DRN has been the more volatile fund at 53.3% annualized versus 15.3% for SPY. Worst drawdown: DRN -86.3% vs SPY -56.5%.
Should I hold both DRN and SPY?
DRN and SPY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DRN and SPY?
DRN and SPY share 31 common holdings with a 1.8% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, DRN or SPY?
DRN yields 1.97% while SPY yields 1.01%, so DRN currently pays the higher dividend yield.
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