SPY vs TECS
State Street SPDR S&P 500 ETF Trust vs Direxion Daily Technology Bear 3X ETF
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 | TECS | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.01% | |
| AUM | $789.1B | $77M | |
| Dividend Yield | 1.01% | 89.69% | |
| Holdings | 505 | 12 | |
| YTD Return | +13.79% | -64.48% | |
| 1Y Return | +23.66% | -73.89% | |
| 3Y Return (annualized) | +21.40% | -64.18% | |
| 5Y Return (annualized) | +13.37% | -56.54% | |
| Volatility (annualized) | 15.3% | 51.9% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Dec 17, 2008 |
SPY vs TECS Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Daily Technology Bear 3X ETF (TECS) is a ETF from Direxion Shares ETF Trust. Over the past year SPY returned +23.66% while TECS returned -73.89%. Year to date, SPY is up 13.79% versus a loss of 64.48% for TECS.
Over three years, SPY compounded at +21.40% per year against -64.18% for TECS; over five years the annualized figures are +13.37% and -56.54% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs -57.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TECS has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -100.0% for TECS. 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 -0.82. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TECS charges 1.01%. On a $10,000 position that is $9 vs $101 annually, a gap of $92 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 89.69% for TECS.
Holdings Overlap
SPY and TECS share 0 holdings out of 507 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 TECS?
SPY has an expense ratio of 0.09% while TECS charges 1.01%. SPY is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, SPY or TECS?
Over the past year SPY returned +23.66% vs -73.89% for TECS, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.85% vs -57.94% for TECS. Past performance does not guarantee future results.
Which is riskier, SPY or TECS?
TECS has been the more volatile fund at 51.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TECS -100.0%.
Should I hold both SPY and TECS?
SPY and TECS have a monthly-return correlation of -0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TECS?
SPY and TECS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, SPY or TECS?
SPY yields 1.01% while TECS yields 89.69%, so TECS currently pays the higher dividend yield.
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