PYPY vs SPY
YieldMax PYPL Option Income Strategy ETF 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 505 holdings.
Side-by-Side Comparison
| Metric | PYPY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.46% | 0.09% | |
| AUM | $16M | $821.1B | |
| Dividend Yield | 56.79% | 1.01% | |
| Holdings | 8 | 505 | |
| YTD Return | +2.62% | +12.68% | |
| 1Y Return | -11.90% | +21.82% | |
| 3Y Return (annualized) | +3.06% | +21.98% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 31.0% | 15.3% | |
| Max Drawdown | -53.6% | -56.5% | |
| Fund Family | YieldMax ETF | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 25, 2023 | Jan 22, 1993 |
PYPY vs SPY Performance
YieldMax PYPL Option Income Strategy ETF (PYPY) is a ETF from YieldMax ETF and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PYPY returned -11.90% while SPY returned +21.82%. Year to date, PYPY is up 2.62% versus a gain of 12.68% for SPY.
Over three years, PYPY compounded at +3.06% per year against +21.98% for SPY. Across the full 3-year window we track, SPY has the edge at +8.81% annualized vs +3.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PYPY has been the more volatile fund, with annualized monthly volatility of 31.0% 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 -53.6% for PYPY 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
PYPY charges 1.46% per year while SPY charges 0.09%. On a $10,000 position that is $146 vs $9 annually, a gap of $137 per year that compounds over a long holding period. On income, PYPY currently yields 56.79% against 1.01% for SPY.
Holdings Overlap
PYPY 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, PYPY or SPY?
PYPY has an expense ratio of 1.46% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $137 per year of difference.
Which performed better, PYPY or SPY?
Over the past year PYPY returned -11.90% vs +21.82% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), PYPY annualized +3.06% vs +8.81% for SPY. Past performance does not guarantee future results.
Which is riskier, PYPY or SPY?
PYPY has been the more volatile fund at 31.0% annualized versus 15.3% for SPY. Worst drawdown: PYPY -53.6% vs SPY -56.5%.
Should I hold both PYPY and SPY?
PYPY 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 PYPY and SPY?
PYPY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, PYPY or SPY?
PYPY yields 56.79% while SPY yields 1.01%, so PYPY currently pays the higher dividend yield.
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