PALD vs SPY

PALD vs SPY
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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

MetricPALDSPYWinner
Expense Ratio1.02%0.09%
AUM$3M$821.1B
Dividend Yield5.19%1.01%
Holdings8505
YTD Return-58.03%+14.24%
1Y Return-59.45%+21.71%
3Y Return (annualized)-+22.10%
5Y Return (annualized)-+13.21%
Volatility (annualized)47.7%15.3%
Max Drawdown-67.4%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionMar 26, 2025Jan 22, 1993

PALD vs SPY Performance

Direxion Daily PANW Bear 1X ETF (PALD) 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 PALD returned -59.45% while SPY returned +21.71%. Year to date, PALD is down 58.03% versus a gain of 14.24% for SPY.

Risk: Volatility and Drawdowns

PALD has been the more volatile fund, with annualized monthly volatility of 47.7% 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 -67.4% for PALD 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 -0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PALD charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, PALD currently yields 5.19% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

PALD and SPY share 0 holdings out of 508 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, PALD or SPY?

PALD has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.

Which performed better, PALD or SPY?

Over the past year PALD returned -59.45% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (1 years), PALD annualized -46.75% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, PALD or SPY?

PALD has been the more volatile fund at 47.7% annualized versus 15.3% for SPY. Worst drawdown: PALD -67.4% vs SPY -56.5%.

Should I hold both PALD and SPY?

PALD and SPY have a monthly-return correlation of -0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PALD and SPY?

PALD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.

Which pays a higher dividend, PALD or SPY?

PALD yields 5.19% while SPY yields 1.01%, so PALD currently pays the higher dividend yield.

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