SPY vs TAN
State Street SPDR S&P 500 ETF Trust vs Invesco Solar ETF
Quick Verdict
SPY has a lower expense ratio. TAN delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TAN | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.70% | |
| AUM | $789.1B | $1.5B | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 42 | |
| YTD Return | +13.39% | +2.13% | |
| 1Y Return | +22.52% | +43.99% | |
| 3Y Return (annualized) | +21.36% | -5.27% | |
| 5Y Return (annualized) | +13.19% | -9.29% | |
| Volatility (annualized) | 15.3% | 43.7% | |
| Max Drawdown | -56.5% | -95.3% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Apr 15, 2008 |
SPY vs TAN Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco Solar ETF (TAN) is a ETF from Invesco (US). Over the past year SPY returned +22.52% while TAN returned +43.99%. Year to date, SPY is up 13.39% versus a gain of 2.13% for TAN.
Over three years, SPY compounded at +21.36% per year against -5.27% for TAN; over five years the annualized figures are +13.19% and -9.29% respectively. Across the full 18-year window we track, SPY has the edge at +8.84% annualized vs -6.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAN has been the more volatile fund, with annualized monthly volatility of 43.7% 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 -56.5% for SPY and -95.3% for TAN. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TAN charges 0.70%. On a $10,000 position that is $9 vs $70 annually, a gap of $61 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for TAN.
Holdings Overlap
SPY and TAN share 1 holdings out of 537 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in TAN | Difference |
|---|---|---|---|
| FSLR | 0.04% | 9.42% | 9.38% |
Frequently Asked Questions
Which is cheaper, SPY or TAN?
SPY has an expense ratio of 0.09% while TAN charges 0.70%. SPY is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, SPY or TAN?
Over the past year SPY returned +22.52% vs +43.99% for TAN, so TAN leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.84% vs -6.83% for TAN. Past performance does not guarantee future results.
Which is riskier, SPY or TAN?
TAN has been the more volatile fund at 43.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TAN -95.3%.
Should I hold both SPY and TAN?
SPY and TAN have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TAN?
SPY and TAN share 1 common holdings with a 0.0% weight overlap. Combined, they hold 537 unique securities.
Which pays a higher dividend, SPY or TAN?
SPY yields 1.01% while TAN yields 0.00%, so SPY currently pays the higher dividend yield.
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