SPY vs TEMT

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYTEMTWinner
Expense Ratio0.09%1.30%
AUM$789.1B$25M
Dividend Yield1.01%0.00%
Holdings5056
YTD Return+13.75%+60.80%
1Y Return+22.91%+7.45%
3Y Return (annualized)+21.67%-
5Y Return (annualized)+13.32%-
Volatility (annualized)15.3%157.2%
Max Drawdown-56.5%-84.0%
Fund FamilyState Street Investment ManagementTradr ETFs
CategoryEquityAlternative
InceptionJan 22, 1993May 12, 2025

SPY vs TEMT Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Tradr 2X Long TEM Daily ETF (TEMT) is a ETF from Tradr ETFs. Over the past year SPY returned +22.91% while TEMT returned +7.45%. Year to date, SPY is up 13.75% versus a gain of 60.80% for TEMT.

Risk: Volatility and Drawdowns

TEMT has been the more volatile fund, with annualized monthly volatility of 157.2% 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 -84.0% for TEMT. 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TEMT charges 1.30%. On a $10,000 position that is $9 vs $130 annually, a gap of $121 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for TEMT.

Frequently Asked Questions

Which is cheaper, SPY or TEMT?

SPY has an expense ratio of 0.09% while TEMT charges 1.30%. SPY is the cheaper option. On a $10,000 investment, that is $121 per year of difference.

Which performed better, SPY or TEMT?

Over the past year SPY returned +22.91% vs +7.45% for TEMT, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.85% vs -26.69% for TEMT. Past performance does not guarantee future results.

Which is riskier, SPY or TEMT?

TEMT has been the more volatile fund at 157.2% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TEMT -84.0%.

Should I hold both SPY and TEMT?

SPY and TEMT have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SPY or TEMT?

SPY yields 1.01% while TEMT yields 0.00%, so SPY currently pays the higher dividend yield.

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