SPY vs TSMG

Quick Verdict

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

Lower Fees: SPYHigher Returns: TSMGMore Diversified: SPY

Side-by-Side Comparison

MetricSPYTSMGWinner
Expense Ratio0.09%0.76%
AUM$789.1B$30M
Dividend Yield1.01%5.36%
Holdings5055
YTD Return+14.47%+51.18%
1Y Return+21.96%+146.20%
3Y Return (annualized)+21.70%-
5Y Return (annualized)+13.30%-
Volatility (annualized)15.3%77.8%
Max Drawdown-56.5%-63.7%
Fund FamilyState Street Investment ManagementLeverage Shares
CategoryEquityAlternative
InceptionJan 22, 1993Jan 14, 2025

SPY vs TSMG Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Leverage Shares 2X Long TSM Daily ETF (TSMG) is a ETF from Leverage Shares. Over the past year SPY returned +21.96% while TSMG returned +146.20%. Year to date, SPY is up 14.47% versus a gain of 51.18% for TSMG.

Risk: Volatility and Drawdowns

TSMG has been the more volatile fund, with annualized monthly volatility of 77.8% 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 -63.7% for TSMG. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TSMG charges 0.76%. On a $10,000 position that is $9 vs $76 annually, a gap of $67 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.36% for TSMG.

Holdings Overlap

0.0%overlap

SPY and TSMG share 0 holdings out of 504 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 TSMG?

SPY has an expense ratio of 0.09% while TSMG charges 0.76%. SPY is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, SPY or TSMG?

Over the past year SPY returned +21.96% vs +146.20% for TSMG, so TSMG leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.87% vs +98.75% for TSMG. Past performance does not guarantee future results.

Which is riskier, SPY or TSMG?

TSMG has been the more volatile fund at 77.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TSMG -63.7%.

Should I hold both SPY and TSMG?

SPY and TSMG have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TSMG?

SPY and TSMG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.

Which pays a higher dividend, SPY or TSMG?

SPY yields 1.01% while TSMG yields 5.36%, so TSMG currently pays the higher dividend yield.

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