SPY vs TEK
State Street SPDR S&P 500 ETF Trust vs iShares Technology Opportunities Active ETF
Quick Verdict
SPY has a lower expense ratio. TEK delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TEK | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.75% | |
| AUM | $789.1B | $39M | |
| Dividend Yield | 1.01% | 1.12% | |
| Holdings | 505 | 58 | |
| YTD Return | +13.79% | +27.85% | |
| 1Y Return | +23.66% | +34.41% | |
| 3Y Return (annualized) | +21.40% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.3% | 31.2% | |
| Max Drawdown | -56.5% | -28.2% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Oct 21, 2024 |
SPY vs TEK Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares Technology Opportunities Active ETF (TEK) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +23.66% while TEK returned +34.41%. Year to date, SPY is up 13.79% versus a gain of 27.85% for TEK.
Risk: Volatility and Drawdowns
TEK has been the more volatile fund, with annualized monthly volatility of 31.2% 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 -28.2% for TEK. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while TEK charges 0.75%. On a $10,000 position that is $9 vs $75 annually, a gap of $66 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.12% for TEK.
Holdings Overlap
SPY and TEK share 29 holdings out of 526 unique holdings combined, representing a 33.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or TEK?
SPY has an expense ratio of 0.09% while TEK charges 0.75%. SPY is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, SPY or TEK?
Over the past year SPY returned +23.66% vs +34.41% for TEK, so TEK leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.85% vs +28.28% for TEK. Past performance does not guarantee future results.
Which is riskier, SPY or TEK?
TEK has been the more volatile fund at 31.2% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TEK -28.2%.
Should I hold both SPY and TEK?
SPY and TEK have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TEK?
SPY and TEK share 29 common holdings with a 33.5% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, SPY or TEK?
SPY yields 1.01% while TEK yields 1.12%, so TEK currently pays the higher dividend yield.
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