SDP vs SPY

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

MetricSDPSPYWinner
Expense Ratio0.95%0.09%
AUM$4M$789.1B
Dividend Yield4.27%1.01%
Holdings5505
YTD Return-1.53%+13.75%
1Y Return-2.59%+22.91%
3Y Return (annualized)-19.70%+21.67%
5Y Return (annualized)-14.89%+13.32%
Volatility (annualized)30.4%15.3%
Max Drawdown-99.8%-56.5%
Fund FamilyProSharesState Street Investment Management
CategoryAlternativeEquity
InceptionJan 30, 2007Jan 22, 1993

SDP vs SPY Performance

ProShares UltraShort Utilities (SDP) 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 SDP returned -2.59% while SPY returned +22.91%. Year to date, SDP is down 1.53% versus a gain of 13.75% for SPY.

Over three years, SDP compounded at -19.70% per year against +21.67% for SPY; over five years the annualized figures are -14.89% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs -24.65%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SDP has been the more volatile fund, with annualized monthly volatility of 30.4% 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 -99.8% for SDP 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 -0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SDP 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, SDP currently yields 4.27% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, SDP or SPY?

SDP 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, SDP or SPY?

Over the past year SDP returned -2.59% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SDP annualized -24.65% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SDP or SPY?

SDP has been the more volatile fund at 30.4% annualized versus 15.3% for SPY. Worst drawdown: SDP -99.8% vs SPY -56.5%.

Should I hold both SDP and SPY?

SDP and SPY have a monthly-return correlation of -0.43, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SDP or SPY?

SDP yields 4.27% while SPY yields 1.01%, so SDP currently pays the higher dividend yield.

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