SOFX 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

MetricSOFXSPYWinner
Expense Ratio1.29%0.09%
AUM$75M$789.1B
Dividend Yield0.00%1.01%
Holdings11505
YTD Return-69.09%+13.39%
1Y Return-63.54%+22.52%
3Y Return (annualized)-+21.36%
5Y Return (annualized)-+13.19%
Volatility (annualized)106.2%15.3%
Max Drawdown-84.8%-56.5%
Fund FamilyDefiance ETFs, LLCState Street Investment Management
CategoryAlternativeEquity
InceptionJan 15, 2025Jan 22, 1993

SOFX vs SPY Performance

Defiance Daily Target 2X Long SOFI ETF (SOFX) is a ETF from Defiance ETFs, LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SOFX returned -63.54% while SPY returned +22.52%. Year to date, SOFX is down 69.09% versus a gain of 13.39% for SPY.

Risk: Volatility and Drawdowns

SOFX has been the more volatile fund, with annualized monthly volatility of 106.2% 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 -84.8% for SOFX 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SOFX charges 1.29% per year while SPY charges 0.09%. On a $10,000 position that is $129 vs $9 annually, a gap of $120 per year that compounds over a long holding period. On income, SOFX currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

SOFX and SPY share 0 holdings out of 505 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, SOFX or SPY?

SOFX has an expense ratio of 1.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $120 per year of difference.

Which performed better, SOFX or SPY?

Over the past year SOFX returned -63.54% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SOFX annualized -36.58% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, SOFX or SPY?

SOFX has been the more volatile fund at 106.2% annualized versus 15.3% for SPY. Worst drawdown: SOFX -84.8% vs SPY -56.5%.

Should I hold both SOFX and SPY?

SOFX and SPY have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SOFX and SPY?

SOFX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.

Which pays a higher dividend, SOFX or SPY?

SOFX yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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