SMN vs SPY
ProShares UltraShort Materials 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 | SMN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $4M | $821.1B | |
| Dividend Yield | 3.53% | 1.01% | |
| Holdings | 6 | 505 | |
| YTD Return | -24.44% | +12.22% | |
| 1Y Return | -27.95% | +20.83% | |
| 3Y Return (annualized) | -34.44% | +21.70% | |
| 5Y Return (annualized) | -28.08% | +12.98% | |
| Volatility (annualized) | 45.4% | 15.3% | |
| Max Drawdown | -100.0% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jan 30, 2007 | Jan 22, 1993 |
SMN vs SPY Performance
ProShares UltraShort Materials (SMN) 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 SMN returned -27.95% while SPY returned +20.83%. Year to date, SMN is down 24.44% versus a gain of 12.22% for SPY.
Over three years, SMN compounded at -34.44% per year against +21.70% for SPY; over five years the annualized figures are -28.08% and +12.98% respectively. Across the full 20-year window we track, SPY has the edge at +8.79% annualized vs -32.20%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMN has been the more volatile fund, with annualized monthly volatility of 45.4% 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 -100.0% for SMN 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 -0.77. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMN 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, SMN currently yields 3.53% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, SMN or SPY?
SMN 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, SMN or SPY?
Over the past year SMN returned -27.95% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SMN annualized -32.20% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, SMN or SPY?
SMN has been the more volatile fund at 45.4% annualized versus 15.3% for SPY. Worst drawdown: SMN -100.0% vs SPY -56.5%.
Should I hold both SMN and SPY?
SMN and SPY have a monthly-return correlation of -0.77, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SMN or SPY?
SMN yields 3.53% while SPY yields 1.01%, so SMN currently pays the higher dividend yield.
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