IPO vs SPY

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

MetricIPOSPYWinner
Expense Ratio0.60%0.09%
AUM$173M$821.1B
Dividend Yield0.45%1.01%
Holdings48505
YTD Return+21.38%+14.24%
1Y Return+14.68%+21.71%
3Y Return (annualized)+21.49%+22.10%
5Y Return (annualized)-1.91%+13.21%
Volatility (annualized)26.3%15.3%
Max Drawdown-68.8%-56.5%
Fund FamilyRenaissance CapitalState Street Investment Management
CategoryEquityEquity
InceptionOct 16, 2013Jan 22, 1993

IPO vs SPY Performance

Renaissance IPO ETF (IPO) is a ETF from Renaissance Capital and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IPO returned +14.68% while SPY returned +21.71%. Year to date, IPO is up 21.38% versus a gain of 14.24% for SPY.

Over three years, IPO compounded at +21.49% per year against +22.10% for SPY; over five years the annualized figures are -1.91% and +13.21% respectively. Across the full 13-year window we track, SPY has the edge at +8.86% annualized vs +8.46%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IPO has been the more volatile fund, with annualized monthly volatility of 26.3% 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 -68.8% for IPO 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IPO charges 0.60% per year while SPY charges 0.09%. On a $10,000 position that is $60 vs $9 annually, a gap of $51 per year that compounds over a long holding period. On income, IPO currently yields 0.45% against 1.01% for SPY.

Holdings Overlap

0.4%overlap

IPO and SPY share 1 holdings out of 555 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IPOWeight in SPYDifference
RTX2.16%0.44%1.72%

Frequently Asked Questions

Which is cheaper, IPO or SPY?

IPO has an expense ratio of 0.60% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, IPO or SPY?

Over the past year IPO returned +14.68% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), IPO annualized +8.46% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, IPO or SPY?

IPO has been the more volatile fund at 26.3% annualized versus 15.3% for SPY. Worst drawdown: IPO -68.8% vs SPY -56.5%.

Should I hold both IPO and SPY?

IPO and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IPO and SPY?

IPO and SPY share 1 common holdings with a 0.4% weight overlap. Combined, they hold 555 unique securities.

Which pays a higher dividend, IPO or SPY?

IPO yields 0.45% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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