ITWO vs SPY
ProShares Russell 2000 High Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. ITWO delivered stronger 1-year returns. ITWO offers more diversification with 1965 holdings.
Side-by-Side Comparison
| Metric | ITWO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.09% | |
| AUM | $198M | $789.1B | |
| Dividend Yield | 7.22% | 1.01% | |
| Holdings | 1,981 | 505 | |
| YTD Return | +16.88% | +14.47% | |
| 1Y Return | +25.74% | +21.96% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +13.30% | |
| Volatility (annualized) | 15.8% | 15.3% | |
| Max Drawdown | -24.8% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Jan 22, 1993 |
ITWO vs SPY Performance
ProShares Russell 2000 High Income ETF (ITWO) is a ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ITWO returned +25.74% while SPY returned +21.96%. Year to date, ITWO is up 16.88% versus a gain of 14.47% for SPY.
Risk: Volatility and Drawdowns
ITWO has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -24.8% for ITWO 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITWO charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, ITWO currently yields 7.22% against 1.01% for SPY.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, ITWO or SPY?
ITWO has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, ITWO or SPY?
Over the past year ITWO returned +25.74% vs +21.96% for SPY, so ITWO leads on 1-year performance. Over the longest common window we track (2 years), ITWO annualized +18.56% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, ITWO or SPY?
ITWO has been the more volatile fund at 15.8% annualized versus 15.3% for SPY. Worst drawdown: ITWO -24.8% vs SPY -56.5%.
Should I hold both ITWO and SPY?
ITWO and SPY have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITWO and SPY?
ITWO and SPY share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2466 unique securities.
Which pays a higher dividend, ITWO or SPY?
ITWO yields 7.22% while SPY yields 1.01%, so ITWO currently pays the higher dividend yield.
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