MZZ vs SPY
ProShares UltraShort MidCap 400 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 503 holdings.
Side-by-Side Comparison
| Metric | MZZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $2M | $789.1B | |
| Dividend Yield | 5.88% | 1.01% | |
| Holdings | 5 | 505 | |
| YTD Return | -25.53% | +13.39% | |
| 1Y Return | -35.30% | +22.52% | |
| 3Y Return (annualized) | -22.29% | +21.36% | |
| 5Y Return (annualized) | -17.15% | +13.19% | |
| Volatility (annualized) | 34.9% | 15.3% | |
| Max Drawdown | -99.9% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jul 11, 2006 | Jan 22, 1993 |
MZZ vs SPY Performance
ProShares UltraShort MidCap 400 (MZZ) 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 MZZ returned -35.30% while SPY returned +22.52%. Year to date, MZZ is down 25.53% versus a gain of 13.39% for SPY.
Over three years, MZZ compounded at -22.29% per year against +21.36% for SPY; over five years the annualized figures are -17.15% and +13.19% respectively. Across the full 20-year window we track, SPY has the edge at +8.84% annualized vs -31.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MZZ has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -99.9% for MZZ 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 -0.88. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MZZ charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, MZZ currently yields 5.88% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, MZZ or SPY?
MZZ has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, MZZ or SPY?
Over the past year MZZ returned -35.30% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), MZZ annualized -31.07% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MZZ or SPY?
MZZ has been the more volatile fund at 34.9% annualized versus 15.3% for SPY. Worst drawdown: MZZ -99.9% vs SPY -56.5%.
Should I hold both MZZ and SPY?
MZZ and SPY have a monthly-return correlation of -0.88, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, MZZ or SPY?
MZZ yields 5.88% while SPY yields 1.01%, so MZZ currently pays the higher dividend yield.
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