Quick Verdict

SPY has a lower expense ratio. MSDD delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: MSDDMore Diversified: SPY

Side-by-Side Comparison

MetricMSDDSPYWinner
Expense Ratio1.50%0.09%
AUM$2M$789.1B
Dividend Yield0.00%1.01%
Holdings1505
YTD Return-45.26%+13.79%
1Y Return+70.78%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)133.8%15.3%
Max Drawdown-84.9%-56.5%
Fund FamilyGraniteSharesState Street Investment Management
CategoryAlternativeEquity
InceptionJun 9, 2025Jan 22, 1993

MSDD vs SPY Performance

GraniteShares 2x Short MSTR Daily ETF (MSDD) is a ETF from GraniteShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSDD returned +70.78% while SPY returned +23.66%. Year to date, MSDD is down 45.26% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

MSDD has been the more volatile fund, with annualized monthly volatility of 133.8% 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 -84.9% for MSDD 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 -0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSDD charges 1.50% per year while SPY charges 0.09%. On a $10,000 position that is $150 vs $9 annually, a gap of $141 per year that compounds over a long holding period. On income, MSDD currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, MSDD or SPY?

MSDD has an expense ratio of 1.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $141 per year of difference.

Which performed better, MSDD or SPY?

Over the past year MSDD returned +70.78% vs +23.66% for SPY, so MSDD leads on 1-year performance. Over the longest common window we track (1 years), MSDD annualized +87.92% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MSDD or SPY?

MSDD has been the more volatile fund at 133.8% annualized versus 15.3% for SPY. Worst drawdown: MSDD -84.9% vs SPY -56.5%.

Should I hold both MSDD and SPY?

MSDD and SPY have a monthly-return correlation of -0.42, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MSDD or SPY?

MSDD yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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