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

MetricSPYTAILWinner
Expense Ratio0.09%0.59%
AUM$789.1B$149M
Dividend Yield1.01%2.93%
Holdings50525
YTD Return+13.79%-9.67%
1Y Return+23.66%-11.58%
3Y Return (annualized)+21.40%-5.84%
5Y Return (annualized)+13.37%-9.19%
Volatility (annualized)15.3%11.1%
Max Drawdown-56.5%-53.5%
Fund FamilyState Street Investment ManagementCambria Investment Management
CategoryEquityAlternative
InceptionJan 22, 1993Apr 5, 2017

SPY vs TAIL Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Cambria Tail Risk ETF (TAIL) is a ETF from Cambria Investment Management. Over the past year SPY returned +23.66% while TAIL returned -11.58%. Year to date, SPY is up 13.79% versus a loss of 9.67% for TAIL.

Over three years, SPY compounded at +21.40% per year against -5.84% for TAIL; over five years the annualized figures are +13.37% and -9.19% respectively. Across the full 9-year window we track, SPY has the edge at +8.85% annualized vs -7.45%. 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 11.1% for TAIL. 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 -56.5% for SPY and -53.5% for TAIL. 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 -0.70. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TAIL charges 0.59%. On a $10,000 position that is $9 vs $59 annually, a gap of $50 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.93% for TAIL.

Holdings Overlap

0.0%overlap

SPY and TAIL 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, SPY or TAIL?

SPY has an expense ratio of 0.09% while TAIL charges 0.59%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.

Which performed better, SPY or TAIL?

Over the past year SPY returned +23.66% vs -11.58% for TAIL, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.85% vs -7.45% for TAIL. Past performance does not guarantee future results.

Which is riskier, SPY or TAIL?

SPY has been the more volatile fund at 15.3% annualized versus 11.1% for TAIL. Worst drawdown: SPY -56.5% vs TAIL -53.5%.

Should I hold both SPY and TAIL?

SPY and TAIL have a monthly-return correlation of -0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TAIL?

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

Which pays a higher dividend, SPY or TAIL?

SPY yields 1.01% while TAIL yields 2.93%, so TAIL currently pays the higher dividend yield.

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