SPY vs TZA
State Street SPDR S&P 500 ETF Trust vs Direxion Daily Small Cap Bear 3X ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | TZA | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.99% | |
| AUM | $821.1B | $228M | |
| Dividend Yield | 1.01% | 4.66% | |
| Holdings | 505 | 11 | |
| YTD Return | +12.22% | -45.34% | |
| 1Y Return | +20.83% | -60.98% | |
| 3Y Return (annualized) | +21.70% | -46.18% | |
| 5Y Return (annualized) | +12.98% | -33.28% | |
| Volatility (annualized) | 15.3% | 55.9% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Nov 5, 2008 |
SPY vs TZA Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Daily Small Cap Bear 3X ETF (TZA) is a ETF from Direxion Shares ETF Trust. Over the past year SPY returned +20.83% while TZA returned -60.98%. Year to date, SPY is up 12.22% versus a loss of 45.34% for TZA.
Over three years, SPY compounded at +21.70% per year against -46.18% for TZA; over five years the annualized figures are +12.98% and -33.28% respectively. Across the full 18-year window we track, SPY has the edge at +8.79% annualized vs -48.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% 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 -100.0% for TZA. 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 -0.85. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while TZA 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 4.66% for TZA.
Holdings Overlap
SPY and TZA 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 TZA?
SPY has an expense ratio of 0.09% while TZA 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 TZA?
Over the past year SPY returned +20.83% vs -60.98% for TZA, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.79% vs -48.78% for TZA. Past performance does not guarantee future results.
Which is riskier, SPY or TZA?
TZA has been the more volatile fund at 55.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs TZA -100.0%.
Should I hold both SPY and TZA?
SPY and TZA have a monthly-return correlation of -0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and TZA?
SPY and TZA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, SPY or TZA?
SPY yields 1.01% while TZA yields 4.66%, so TZA currently pays the higher dividend yield.
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