SBB vs SPY
ProShares Short SmallCap600 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 | SBB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $3M | $821.1B | |
| Dividend Yield | 3.71% | 1.01% | |
| Holdings | 5 | 505 | |
| YTD Return | -15.01% | +13.21% | |
| 1Y Return | -16.54% | +19.87% | |
| 3Y Return (annualized) | -10.63% | +21.16% | |
| 5Y Return (annualized) | -5.71% | +12.74% | |
| Volatility (annualized) | 21.4% | 15.3% | |
| Max Drawdown | -97.4% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jan 23, 2007 | Jan 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 -16.54% while SPY returned +19.87%. Year to date, SBB is down 15.01% versus a gain of 13.21% for SPY.
Over three years, SBB compounded at -10.63% per year against +21.16% for SPY; over five years the annualized figures are -5.71% and +12.74% respectively. Across the full 20-year window we track, SPY has the edge at +8.82% annualized vs -14.54%. 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 3.71% 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 -16.54% vs +19.87% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SBB annualized -14.54% vs +8.82% 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 3.71% while SPY yields 1.01%, so SBB currently pays the higher dividend yield.
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