SPDN vs SPY
Direxion Daily S&P 500 Bear 1X ETF 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 | SPDN | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.09% | |
| AUM | $209M | $789.1B | |
| Dividend Yield | 3.34% | 1.01% | |
| Holdings | 5 | 505 | |
| 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 Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jun 8, 2016 | Jan 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
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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