SPY vs TWM
State Street SPDR S&P 500 ETF Trust vs ProShares UltraShort Russell2000
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 | TWM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $789.1B | $44M | |
| Dividend Yield | 1.01% | 5.68% | |
| Holdings | 505 | 10 | |
| YTD Return | +13.39% | -33.01% | |
| 1Y Return | +22.52% | -48.25% | |
| 3Y Return (annualized) | +21.36% | -58.99% | |
| 5Y Return (annualized) | +13.19% | -41.35% | |
| Volatility (annualized) | 15.3% | 43.0% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Jan 23, 2007 |
SPY vs TWM Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares UltraShort Russell2000 (TWM) is a ETF from ProShares. Over the past year SPY returned +22.52% while TWM returned -48.25%. Year to date, SPY is up 13.39% versus a loss of 33.01% for TWM.
Over three years, SPY compounded at +21.36% per year against -58.99% for TWM; over five years the annualized figures are +13.19% and -41.35% respectively. Across the full 20-year window we track, SPY has the edge at +8.84% annualized vs -35.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TWM has been the more volatile fund, with annualized monthly volatility of 43.0% 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 -100.0% for TWM. 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 -0.80. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TWM charges 0.95%. On a $10,000 position that is $9 vs $95 annually, a gap of $86 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.68% for TWM.
Holdings Overlap
SPY and TWM 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 TWM?
SPY has an expense ratio of 0.09% while TWM charges 0.95%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SPY or TWM?
Over the past year SPY returned +22.52% vs -48.25% for TWM, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.84% vs -35.15% for TWM. Past performance does not guarantee future results.
Which is riskier, SPY or TWM?
TWM has been the more volatile fund at 43.0% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TWM -100.0%.
Should I hold both SPY and TWM?
SPY and TWM have a monthly-return correlation of -0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TWM?
SPY and TWM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or TWM?
SPY yields 1.01% while TWM yields 5.68%, so TWM currently pays the higher dividend yield.
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