SPY vs TBT
State Street SPDR S&P 500 ETF Trust vs ProShares UltraShort 20+ Year Treasury ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TBT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.93% | |
| AUM | $821.1B | $306M | |
| Dividend Yield | 1.01% | 2.52% | |
| Holdings | 505 | 10 | |
| YTD Return | +12.22% | +10.41% | |
| 1Y Return | +20.83% | +8.61% | |
| 3Y Return (annualized) | +21.70% | +5.38% | |
| 5Y Return (annualized) | +12.98% | +20.74% | |
| Volatility (annualized) | 15.3% | 28.1% | |
| Max Drawdown | -56.5% | -95.2% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Apr 29, 2008 |
SPY vs TBT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares UltraShort 20+ Year Treasury ETF (TBT) is a ETF from ProShares. Over the past year SPY returned +20.83% while TBT returned +8.61%. Year to date, SPY is up 12.22% versus a gain of 10.41% for TBT.
Over three years, SPY compounded at +21.70% per year against +5.38% for TBT; over five years the annualized figures are +12.98% and +20.74% respectively. Across the full 18-year window we track, SPY has the edge at +8.79% annualized vs -9.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBT has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -95.2% for TBT. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TBT charges 0.93%. On a $10,000 position that is $9 vs $93 annually, a gap of $84 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.52% for TBT.
Holdings Overlap
SPY and TBT 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 TBT?
SPY has an expense ratio of 0.09% while TBT charges 0.93%. SPY is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, SPY or TBT?
Over the past year SPY returned +20.83% vs +8.61% for TBT, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.79% vs -9.58% for TBT. Past performance does not guarantee future results.
Which is riskier, SPY or TBT?
TBT has been the more volatile fund at 28.1% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TBT -95.2%.
Should I hold both SPY and TBT?
SPY and TBT have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TBT?
SPY and TBT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or TBT?
SPY yields 1.01% while TBT yields 2.52%, so TBT currently pays the higher dividend yield.
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