SH 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

MetricSHSPYWinner
Expense Ratio0.89%0.09%
AUM$928M$789.1B
Dividend Yield4.21%1.01%
Holdings16505
YTD Return-9.62%+13.75%
1Y Return-14.27%+22.91%
3Y Return (annualized)-13.23%+21.67%
5Y Return (annualized)-8.90%+13.32%
Volatility (annualized)14.9%15.3%
Max Drawdown-95.5%-56.5%
Fund FamilyProSharesState Street Investment Management
CategoryAlternativeEquity
InceptionJun 19, 2006Jan 22, 1993

SH vs SPY Performance

ProShares Short S&P500 (SH) 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 SH returned -14.27% while SPY returned +22.91%. Year to date, SH is down 9.62% versus a gain of 13.75% for SPY.

Over three years, SH compounded at -13.23% per year against +21.67% for SPY; over five years the annualized figures are -8.90% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs -12.54%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for SH. 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 -95.5% for SH 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 -0.95. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SH charges 0.89% per year while SPY charges 0.09%. On a $10,000 position that is $89 vs $9 annually, a gap of $80 per year that compounds over a long holding period. On income, SH currently yields 4.21% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, SH or SPY?

SH has an expense ratio of 0.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $80 per year of difference.

Which performed better, SH or SPY?

Over the past year SH returned -14.27% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SH annualized -12.54% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SH or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.9% for SH. Worst drawdown: SH -95.5% vs SPY -56.5%.

Should I hold both SH and SPY?

SH and SPY have a monthly-return correlation of -0.95, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SH or SPY?

SH yields 4.21% while SPY yields 1.01%, so SH currently pays the higher dividend yield.

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