SPDN 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

MetricSPDNSPYWinner
Expense Ratio0.48%0.09%
AUM$209M$789.1B
Dividend Yield3.34%1.01%
Holdings5505
YTD Return-9.32%+13.68%
1Y Return-12.87%+21.53%
3Y Return (annualized)-12.68%+21.44%
5Y Return (annualized)-8.36%+13.18%
Volatility (annualized)14.6%15.3%
Max Drawdown-76.7%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionJun 8, 2016Jan 22, 1993

SPDN vs SPY Performance

Direxion Daily S&P 500 Bear 1X ETF (SPDN) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SPDN returned -12.87% while SPY returned +21.53%. Year to date, SPDN is down 9.32% versus a gain of 13.68% for SPY.

Over three years, SPDN compounded at -12.68% per year against +21.44% for SPY; over five years the annualized figures are -8.36% and +13.18% respectively. Across the full 10-year window we track, SPY has the edge at +8.85% annualized vs -12.86%. 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 14.6% for SPDN. 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 -76.7% for SPDN 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 -0.98. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPDN charges 0.48% per year while SPY charges 0.09%. On a $10,000 position that is $48 vs $9 annually, a gap of $39 per year that compounds over a long holding period. On income, SPDN currently yields 3.34% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

SPDN and SPY share 0 holdings out of 506 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, SPDN or SPY?

SPDN has an expense ratio of 0.48% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $39 per year of difference.

Which performed better, SPDN or SPY?

Over the past year SPDN returned -12.87% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), SPDN annualized -12.86% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SPDN or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.6% for SPDN. Worst drawdown: SPDN -76.7% vs SPY -56.5%.

Should I hold both SPDN and SPY?

SPDN and SPY have a monthly-return correlation of -0.98, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPDN and SPY?

SPDN and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, SPDN or SPY?

SPDN yields 3.34% while SPY yields 1.01%, so SPDN currently pays the higher dividend yield.

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