EDZ vs SPY
Direxion Daily MSCI Emerging Markets Bear 3X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | EDZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.05% | 0.09% | |
| AUM | $21M | $821.1B | |
| Dividend Yield | 4.26% | 1.01% | |
| Holdings | 4 | 505 | |
| YTD Return | -52.09% | +13.17% | |
| 1Y Return | -67.67% | +21.53% | |
| 3Y Return (annualized) | -49.07% | +22.06% | |
| 5Y Return (annualized) | -29.37% | +13.35% | |
| Volatility (annualized) | 53.7% | 15.3% | |
| Max Drawdown | -100.0% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Dec 17, 2008 | Jan 22, 1993 |
EDZ vs SPY Performance
Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ) 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 EDZ returned -67.67% while SPY returned +21.53%. Year to date, EDZ is down 52.09% versus a gain of 13.17% for SPY.
Over three years, EDZ compounded at -49.07% per year against +22.06% for SPY; over five years the annualized figures are -29.37% and +13.35% respectively. Across the full 18-year window we track, SPY has the edge at +8.82% annualized vs -40.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDZ has been the more volatile fund, with annualized monthly volatility of 53.7% 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 EDZ 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 -0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDZ charges 1.05% per year while SPY charges 0.09%. On a $10,000 position that is $105 vs $9 annually, a gap of $96 per year that compounds over a long holding period. On income, EDZ currently yields 4.26% against 1.01% for SPY.
Holdings Overlap
EDZ and SPY share 0 holdings out of 506 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, EDZ or SPY?
EDZ has an expense ratio of 1.05% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, EDZ or SPY?
Over the past year EDZ returned -67.67% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), EDZ annualized -40.23% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, EDZ or SPY?
EDZ has been the more volatile fund at 53.7% annualized versus 15.3% for SPY. Worst drawdown: EDZ -100.0% vs SPY -56.5%.
Should I hold both EDZ and SPY?
EDZ and SPY have a monthly-return correlation of -0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDZ and SPY?
EDZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, EDZ or SPY?
EDZ yields 4.26% while SPY yields 1.01%, so EDZ currently pays the higher dividend yield.
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