Quick Verdict

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

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSBBSPYWinner
Expense Ratio0.95%0.09%
AUM$3M$789.1B
Dividend Yield3.80%1.01%
Holdings5505
YTD Return-17.21%+13.79%
1Y Return-23.97%+23.66%
3Y Return (annualized)-10.48%+21.40%
5Y Return (annualized)-6.57%+13.37%
Volatility (annualized)21.4%15.3%
Max Drawdown-97.4%-56.5%
Fund FamilyProSharesState Street Investment Management
CategoryAlternativeEquity
InceptionJan 23, 2007Jan 22, 1993

SBB vs SPY Performance

ProShares Short SmallCap600 (SBB) 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 SBB returned -23.97% while SPY returned +23.66%. Year to date, SBB is down 17.21% versus a gain of 13.79% for SPY.

Over three years, SBB compounded at -10.48% per year against +21.40% for SPY; over five years the annualized figures are -6.57% and +13.37% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs -14.70%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SBB has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -97.4% for SBB 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 -0.78. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SBB 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, SBB currently yields 3.80% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, SBB or SPY?

SBB 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, SBB or SPY?

Over the past year SBB returned -23.97% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SBB annualized -14.70% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SBB or SPY?

SBB has been the more volatile fund at 21.4% annualized versus 15.3% for SPY. Worst drawdown: SBB -97.4% vs SPY -56.5%.

Should I hold both SBB and SPY?

SBB and SPY have a monthly-return correlation of -0.78, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SBB or SPY?

SBB yields 3.80% while SPY yields 1.01%, so SBB currently pays the higher dividend yield.

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