SPY vs TMF
State Street SPDR S&P 500 ETF Trust vs Direxion Daily 20+ Year Treasury Bull 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 | TMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.90% | |
| AUM | $789.1B | $2.3B | |
| Dividend Yield | 1.01% | 4.08% | |
| Holdings | 505 | 14 | |
| YTD Return | +13.75% | -16.04% | |
| 1Y Return | +22.91% | -16.79% | |
| 3Y Return (annualized) | +21.67% | -18.37% | |
| 5Y Return (annualized) | +13.32% | -34.13% | |
| Volatility (annualized) | 15.3% | 40.7% | |
| Max Drawdown | -56.5% | -93.3% | |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Apr 16, 2009 |
SPY vs TMF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) is a ETF from Direxion Shares ETF Trust. Over the past year SPY returned +22.91% while TMF returned -16.79%. Year to date, SPY is up 13.75% versus a loss of 16.04% for TMF.
Over three years, SPY compounded at +21.67% per year against -18.37% for TMF; over five years the annualized figures are +13.32% and -34.13% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs -7.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMF has been the more volatile fund, with annualized monthly volatility of 40.7% 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 -93.3% for TMF. 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 -0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TMF charges 0.90%. On a $10,000 position that is $9 vs $90 annually, a gap of $81 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.08% for TMF.
Holdings Overlap
SPY and TMF share 0 holdings out of 508 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 TMF?
SPY has an expense ratio of 0.09% while TMF charges 0.90%. SPY is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, SPY or TMF?
Over the past year SPY returned +22.91% vs -16.79% for TMF, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.85% vs -7.98% for TMF. Past performance does not guarantee future results.
Which is riskier, SPY or TMF?
TMF has been the more volatile fund at 40.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TMF -93.3%.
Should I hold both SPY and TMF?
SPY and TMF have a monthly-return correlation of -0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TMF?
SPY and TMF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, SPY or TMF?
SPY yields 1.01% while TMF yields 4.08%, so TMF currently pays the higher dividend yield.
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