OOTO vs SPY

Quick Verdict

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

Lower Fees: SPYHigher Returns: OOTOMore Diversified: SPY

Side-by-Side Comparison

MetricOOTOSPYWinner
Expense Ratio1.07%0.09%
AUM$6M$789.1B
Dividend Yield1.27%1.01%
Holdings54505
YTD Return+1.71%+13.68%
1Y Return+42.54%+21.53%
3Y Return (annualized)+22.56%+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)51.9%15.3%
Max Drawdown-66.9%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionJun 10, 2021Jan 22, 1993

OOTO vs SPY Performance

Direxion Daily Travel & Vacation Bull 2X (OOTO) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year OOTO returned +42.54% while SPY returned +21.53%. Year to date, OOTO is up 1.71% versus a gain of 13.68% for SPY.

Over three years, OOTO compounded at +22.56% per year against +21.44% for SPY. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs -6.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

OOTO has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -66.9% for OOTO 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OOTO charges 1.07% per year while SPY charges 0.09%. On a $10,000 position that is $107 vs $9 annually, a gap of $98 per year that compounds over a long holding period. On income, OOTO currently yields 1.27% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, OOTO or SPY?

OOTO has an expense ratio of 1.07% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $98 per year of difference.

Which performed better, OOTO or SPY?

Over the past year OOTO returned +42.54% vs +21.53% for SPY, so OOTO leads on 1-year performance. Over the longest common window we track (4 years), OOTO annualized -6.08% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, OOTO or SPY?

OOTO has been the more volatile fund at 51.9% annualized versus 15.3% for SPY. Worst drawdown: OOTO -66.9% vs SPY -56.5%.

Should I hold both OOTO and SPY?

OOTO and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, OOTO or SPY?

OOTO yields 1.27% while SPY yields 1.01%, so OOTO currently pays the higher dividend yield.

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