MSTX 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

MetricMSTXSPYWinner
Expense Ratio1.31%0.09%
AUM$142M$789.1B
Dividend Yield41.07%1.01%
Holdings10505
YTD Return-79.05%+14.47%
1Y Return-97.50%+21.96%
3Y Return (annualized)-+21.70%
5Y Return (annualized)-+13.30%
Volatility (annualized)150.2%15.3%
Max Drawdown-99.5%-56.5%
Fund FamilyDefiance ETFs, LLCState Street Investment Management
CategoryAlternativeEquity
InceptionAug 14, 2024Jan 22, 1993

MSTX vs SPY Performance

Defiance Daily Target 2X Long MSTR ETF (MSTX) is a ETF from Defiance ETFs, LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSTX returned -97.50% while SPY returned +21.96%. Year to date, MSTX is down 79.05% versus a gain of 14.47% for SPY.

Risk: Volatility and Drawdowns

MSTX has been the more volatile fund, with annualized monthly volatility of 150.2% 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 -99.5% for MSTX 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSTX charges 1.31% per year while SPY charges 0.09%. On a $10,000 position that is $131 vs $9 annually, a gap of $122 per year that compounds over a long holding period. On income, MSTX currently yields 41.07% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

MSTX and SPY share 0 holdings out of 505 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, MSTX or SPY?

MSTX has an expense ratio of 1.31% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $122 per year of difference.

Which performed better, MSTX or SPY?

Over the past year MSTX returned -97.50% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), MSTX annualized -76.07% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, MSTX or SPY?

MSTX has been the more volatile fund at 150.2% annualized versus 15.3% for SPY. Worst drawdown: MSTX -99.5% vs SPY -56.5%.

Should I hold both MSTX and SPY?

MSTX and SPY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSTX and SPY?

MSTX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.

Which pays a higher dividend, MSTX or SPY?

MSTX yields 41.07% while SPY yields 1.01%, so MSTX currently pays the higher dividend yield.

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