SPY vs TSMX
State Street SPDR S&P 500 ETF Trust vs Direxion Daily TSM Bull 2X ETF
Quick Verdict
SPY has a lower expense ratio. TSMX delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | TSMX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.99% | |
| AUM | $789.1B | $587M | |
| Dividend Yield | 1.01% | 3.95% | |
| Holdings | 505 | 10 | |
| YTD Return | +14.47% | +52.52% | |
| 1Y Return | +21.96% | +146.31% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +13.30% | - | |
| Volatility (annualized) | 15.3% | 72.8% | |
| Max Drawdown | -56.5% | -63.8% | |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Oct 3, 2024 |
SPY vs TSMX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Daily TSM Bull 2X ETF (TSMX) is a ETF from Direxion Shares ETF Trust. Over the past year SPY returned +21.96% while TSMX returned +146.31%. Year to date, SPY is up 14.47% versus a gain of 52.52% for TSMX.
Risk: Volatility and Drawdowns
TSMX has been the more volatile fund, with annualized monthly volatility of 72.8% 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 -63.8% for TSMX. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TSMX charges 0.99%. On a $10,000 position that is $9 vs $99 annually, a gap of $90 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.95% for TSMX.
Holdings Overlap
SPY and TSMX 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 TSMX?
SPY has an expense ratio of 0.09% while TSMX charges 0.99%. SPY is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, SPY or TSMX?
Over the past year SPY returned +21.96% vs +146.31% for TSMX, so TSMX leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.87% vs +96.13% for TSMX. Past performance does not guarantee future results.
Which is riskier, SPY or TSMX?
TSMX has been the more volatile fund at 72.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TSMX -63.8%.
Should I hold both SPY and TSMX?
SPY and TSMX have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TSMX?
SPY and TSMX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, SPY or TSMX?
SPY yields 1.01% while TSMX yields 3.95%, so TSMX currently pays the higher dividend yield.
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