SDS vs SPY
ProShares UltraShort S&P500 vs State Street SPDR S&P 500 ETF Trust
Which is better, SDS or SPY?
Opposite sides of the same exposure.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.96, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SDS | SPY |
|---|---|---|
| Expense Ratio | 0.91% | 0.09%Best |
| AUM | $388M | $804.7B |
| Dividend Yield | 5.55% | 0.98% |
| Holdings | 20 | 505 |
| YTD Return | -17.84% | +12.09%Best |
| 1Y Return | -22.02% | +16.29%Best |
| 3Y Return (annualized) | -28.47% | +21.20%Best |
| 5Y Return (annualized) | -21.33% | +13.37%Best |
| Volatility (annualized) | 28.2% | 15.3%Best |
| Max Drawdown | - | -56.5% |
| $10,000 over 5 years | $3,013 | $18,728Best |
| Fund Family | ProShares | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Trading-Inverse Equity | Large Cap Blend |
| Inception | Jul 11, 2006 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 13, 2006 to Sep 18, 2026 (20.2 years).
SDS vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.2 years both funds cover.
SDS vs SPY Performance
ProShares UltraShort S&P500 (SDS) is an ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SDS returned -22.02% while SPY returned +16.29%. Year to date, SDS is down 17.84% versus a gain of 12.09% for SPY.
Over three years, SDS compounded at -28.47% per year against +21.20% for SPY; over five years the annualized figures are -21.33% and +13.37% respectively. Across the full 20-year window we track, SPY has the edge at +9.81% annualized vs -26.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SDS has been the more volatile fund, with annualized monthly volatility of 28.2% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.96. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
Fees and Cost Over Time
SDS charges 0.91% per year while SPY charges 0.09%. On a $10,000 position that is $91 vs $9 annually, a gap of $82 per year that compounds over a long holding period. On income, SDS currently yields 5.55% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 1 holding in SDS and 504 in SPY, totalling 101.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1 positions we hold weights for in SDS and 504 in SPY, against full books of 20 and 505.
You are not choosing between two funds in isolation.
Whichever of SDS and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SDS or SPY?
SDS has an expense ratio of 0.91% while SPY charges 0.09%. SPY is the cheaper option, by $82 a year on a $10,000 investment.
Which performed better, SDS or SPY?
Over the past year SDS returned -22.02% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SDS annualized -26.11% vs +9.81% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SDS or SPY?
SDS has been the more volatile fund at 28.2% annualized versus 15.3% for SPY.
Should I hold both SDS and SPY?
SDS and SPY have a monthly-return correlation of -0.96, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, SDS or SPY?
SDS yields 5.55% while SPY yields 0.98%, so SDS currently pays the higher dividend yield.
Is SPY better than SDS?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.96, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.