PALU vs SPY
Direxion Daily PANW Bull 2X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. PALU delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PALU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.08% | 0.09% | |
| AUM | $38M | $821.1B | |
| Dividend Yield | 4.08% | 1.01% | |
| Holdings | 11 | 505 | |
| YTD Return | +273.54% | +14.24% | |
| 1Y Return | +272.64% | +21.71% | |
| 3Y Return (annualized) | - | +22.10% | |
| 5Y Return (annualized) | - | +13.21% | |
| Volatility (annualized) | 134.1% | 15.3% | |
| Max Drawdown | -62.2% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Mar 26, 2025 | Jan 22, 1993 |
PALU vs SPY Performance
Direxion Daily PANW Bull 2X ETF (PALU) 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 PALU returned +272.64% while SPY returned +21.71%. Year to date, PALU is up 273.54% versus a gain of 14.24% for SPY.
Risk: Volatility and Drawdowns
PALU has been the more volatile fund, with annualized monthly volatility of 134.1% 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 -62.2% for PALU 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PALU charges 1.08% per year while SPY charges 0.09%. On a $10,000 position that is $108 vs $9 annually, a gap of $99 per year that compounds over a long holding period. On income, PALU currently yields 4.08% against 1.01% for SPY.
Holdings Overlap
PALU and SPY share 1 holdings out of 508 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PALU | Weight in SPY | Difference |
|---|---|---|---|
| PANW | 23.80% | 0.45% | 23.35% |
Frequently Asked Questions
Which is cheaper, PALU or SPY?
PALU has an expense ratio of 1.08% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, PALU or SPY?
Over the past year PALU returned +272.64% vs +21.71% for SPY, so PALU leads on 1-year performance. Over the longest common window we track (1 years), PALU annualized +117.45% vs +8.86% for SPY. Past performance does not guarantee future results.
Which is riskier, PALU or SPY?
PALU has been the more volatile fund at 134.1% annualized versus 15.3% for SPY. Worst drawdown: PALU -62.2% vs SPY -56.5%.
Should I hold both PALU and SPY?
PALU and SPY have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALU and SPY?
PALU and SPY share 1 common holdings with a 0.5% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, PALU or SPY?
PALU yields 4.08% while SPY yields 1.01%, so PALU currently pays the higher dividend yield.
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