SPY vs TYG

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYTYGWinner
Expense Ratio0.09%1.49%
AUM$821.1B$1.6B
Dividend Yield1.01%11.96%
Holdings50541
YTD Return+14.24%+14.81%
1Y Return+21.71%+15.23%
3Y Return (annualized)+22.10%+25.91%
5Y Return (annualized)+13.21%+21.39%
Volatility (annualized)15.3%34.9%
Max Drawdown-56.5%-97.3%
Fund FamilyState Street Investment ManagementTortoiseEcofin Funds
CategoryEquityEquity
InceptionJan 22, 1993Feb 27, 2004

SPY vs TYG Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Tortoise Energy Infrastructure Corporation (TYG) is a ETF from TortoiseEcofin Funds. Over the past year SPY returned +21.71% while TYG returned +15.23%. Year to date, SPY is up 14.24% versus a gain of 14.81% for TYG.

Over three years, SPY compounded at +22.10% per year against +25.91% for TYG; over five years the annualized figures are +13.21% and +21.39% respectively. Across the full 23-year window we track, SPY has the edge at +8.86% annualized vs -1.34%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYG has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -97.3% for TYG. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while TYG charges 1.49%. On a $10,000 position that is $9 vs $149 annually, a gap of $140 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 11.96% for TYG.

Holdings Overlap

1.1%overlap

SPY and TYG share 16 holdings out of 521 unique holdings combined, representing a 1.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in TYGDifference
WMB0.13%10.98%10.85%
TRGP0.08%10.24%10.16%
EVRG0.03%8.93%8.90%
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OKEProProPro
ETRProProPro
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Frequently Asked Questions

Which is cheaper, SPY or TYG?

SPY has an expense ratio of 0.09% while TYG charges 1.49%. SPY is the cheaper option. On a $10,000 investment, that is $140 per year of difference.

Which performed better, SPY or TYG?

Over the past year SPY returned +21.71% vs +15.23% for TYG, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SPY annualized +8.86% vs -1.34% for TYG. Past performance does not guarantee future results.

Which is riskier, SPY or TYG?

TYG has been the more volatile fund at 34.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TYG -97.3%.

Should I hold both SPY and TYG?

SPY and TYG have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and TYG?

SPY and TYG share 16 common holdings with a 1.1% weight overlap. Combined, they hold 521 unique securities.

Which pays a higher dividend, SPY or TYG?

SPY yields 1.01% while TYG yields 11.96%, so TYG currently pays the higher dividend yield.

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