SEF vs SPY
ProShares Short Financials 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 503 holdings.
Side-by-Side Comparison
| Metric | SEF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $13M | $789.1B | |
| Dividend Yield | 3.25% | 1.01% | |
| Holdings | 10 | 505 | |
| YTD Return | -3.63% | +13.75% | |
| 1Y Return | -7.73% | +22.91% | |
| 3Y Return (annualized) | -12.84% | +21.67% | |
| 5Y Return (annualized) | -7.45% | +13.32% | |
| Volatility (annualized) | 19.7% | 15.3% | |
| Max Drawdown | -96.7% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jun 10, 2008 | Jan 22, 1993 |
SEF vs SPY Performance
ProShares Short Financials (SEF) 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 SEF returned -7.73% while SPY returned +22.91%. Year to date, SEF is down 3.63% versus a gain of 13.75% for SPY.
Over three years, SEF compounded at -12.84% per year against +21.67% for SPY; over five years the annualized figures are -7.45% and +13.32% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs -14.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SEF has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -96.7% for SEF 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 -0.83. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SEF 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, SEF currently yields 3.25% against 1.01% for SPY.
Holdings Overlap
SEF and SPY share 0 holdings out of 504 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, SEF or SPY?
SEF 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, SEF or SPY?
Over the past year SEF returned -7.73% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SEF annualized -14.48% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SEF or SPY?
SEF has been the more volatile fund at 19.7% annualized versus 15.3% for SPY. Worst drawdown: SEF -96.7% vs SPY -56.5%.
Should I hold both SEF and SPY?
SEF and SPY have a monthly-return correlation of -0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SEF and SPY?
SEF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SEF or SPY?
SEF yields 3.25% while SPY yields 1.01%, so SEF currently pays the higher dividend yield.
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