SPY vs TBF
State Street SPDR S&P 500 ETF Trust vs ProShares Short 20+ Year Treasury
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 | SPY | TBF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $789.1B | $86M | |
| Dividend Yield | 1.01% | 2.80% | |
| Holdings | 505 | 10 | |
| YTD Return | +13.75% | +6.57% | |
| 1Y Return | +22.91% | +7.49% | |
| 3Y Return (annualized) | +21.67% | +6.40% | |
| 5Y Return (annualized) | +13.32% | +11.96% | |
| Volatility (annualized) | 15.3% | 13.5% | |
| Max Drawdown | -56.5% | -71.2% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Aug 18, 2009 |
SPY vs TBF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares Short 20+ Year Treasury (TBF) is a ETF from ProShares. Over the past year SPY returned +22.91% while TBF returned +7.49%. Year to date, SPY is up 13.75% versus a gain of 6.57% for TBF.
Over three years, SPY compounded at +21.67% per year against +6.40% for TBF; over five years the annualized figures are +13.32% and +11.96% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs -3.06%. 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 13.5% for TBF. 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 -71.2% for TBF. 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TBF charges 0.95%. On a $10,000 position that is $9 vs $95 annually, a gap of $86 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.80% for TBF.
Holdings Overlap
SPY and TBF share 0 holdings out of 504 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 TBF?
SPY has an expense ratio of 0.09% while TBF charges 0.95%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SPY or TBF?
Over the past year SPY returned +22.91% vs +7.49% for TBF, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.85% vs -3.06% for TBF. Past performance does not guarantee future results.
Which is riskier, SPY or TBF?
SPY has been the more volatile fund at 15.3% annualized versus 13.5% for TBF. Worst drawdown: SPY -56.5% vs TBF -71.2%.
Should I hold both SPY and TBF?
SPY and TBF have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TBF?
SPY and TBF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or TBF?
SPY yields 1.01% while TBF yields 2.80%, so TBF currently pays the higher dividend yield.
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