DRN vs SPY

DRN vs SPY

Which is better, DRN or SPY?

Trading-Leveraged Equity against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 66.7%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricDRNSPY
Expense Ratio0.98%0.09%Best
AUM$43M$814.4B
Dividend Yield1.87%1.01%
Holdings36505
YTD Return+20.60%Best+13.34%
1Y Return+9.84%+19.97%Best
3Y Return (annualized)+8.45%+21.20%Best
5Y Return (annualized)-15.02%+12.81%Best
Volatility (annualized)53.3%14.3%Best
Max Drawdown-86.3%-34.1%Best
$10,000 over 5 years$4,432$18,270Best
Top 10 Weight66.7%38.0%Best
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
StyleTrading-Leveraged EquityLarge Cap Blend
InceptionJul 16, 2009Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Jul 16, 2009 to Sep 4, 2026 (17.1 years).

DRN vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 17.1 years both funds cover.

DRN vs SPY Performance

Direxion Daily Real Estate Bull 3X ETF (DRN) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year DRN returned +9.84% while SPY returned +19.97%. Year to date, DRN is up 20.60% versus a gain of 13.34% for SPY.

Over three years, DRN compounded at +8.45% per year against +21.20% for SPY; over five years the annualized figures are -15.02% and +12.81% respectively. Across the full 17-year window we track, SPY has the edge at +13.61% annualized vs +11.19%.

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 14.3% 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, DRN currently yields 1.87% against 1.01% for SPY.

Holdings Overlap

DRN already in SPY70.0%
SPY already in DRN1.8%

70.0% of DRN's money is in holdings SPY also owns. 1.8% of SPY's money is in holdings DRN also owns.

Most of DRN is already inside SPY. Owning both mostly buys the same companies twice.

31 positions in common, counted across the 33 positions we hold weights for in DRN and 504 in SPY, against full books of 36 and 505.

What only one of them owns

Measured across the 33 and 504 positions we hold weights for.

SPY holds 465 positions DRN does not, 97.6% of the fund.

Largest: NVDA 7.71%, AAPL 6.83%, MSFT 5.50%, AMZN 4.08%, GOOGL 3.33%

Top Shared Holdings

StockWeight in DRNWeight in SPYDifference
WELLWelltower, Inc.7.67%0.25%7.42%
PLDPrologis Inc6.08%0.19%5.89%
EQIXEquinix Inc. Real Estate Investment Trust4.87%0.16%4.71%
AMTAmerican Tower Corporation3.83%0.12%3.71%
DLRDigital Realty Trust Inc.3.52%0.10%3.42%
SPGSimon Property Group Inc3.44%0.11%3.33%
PSAPublic Storage3.33%0.08%3.25%
ORealty Income Corp.3.15%0.09%3.06%
CBRECBRE group3.13%0.07%3.06%
VTRVentas  Inc .3.13%0.07%3.06%

70.0% of DRN is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

DRNSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DRN or SPY?

DRN has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option, by $89 a year on a $10,000 investment.

Which performed better, DRN or SPY?

Over the past year DRN returned +9.84% vs +19.97% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), DRN annualized +11.19% vs +13.61% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DRN or SPY?

DRN has been the more volatile fund at 53.3% annualized versus 14.3% for SPY. Worst drawdown: DRN -86.3% vs SPY -34.1%.

Should I hold both DRN and SPY?

DRN and SPY have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between DRN and SPY?

70.0% of DRN's money is in holdings SPY also owns. 1.8% of SPY's is in holdings DRN also owns. They hold 31 positions in common, counted across the 33 positions we hold weights for in DRN and 504 in SPY.

Which pays a higher dividend, DRN or SPY?

DRN yields 1.87% while SPY yields 1.01%, so DRN currently pays the higher dividend yield.

Is SPY better than DRN?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 66.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.