SPY vs TZA
State Street SPDR S&P 500 ETF Trust vs Direxion Daily Small Cap Bear 3X ETF
Which is better, SPY or TZA?
Opposite sides of the same exposure.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.85, so holding both offsets the exposure while paying both fees.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | TZA |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.99% |
| AUM | $804.7B | $250M |
| Dividend Yield | 0.98% | 4.79% |
| Holdings | 505 | 11 |
| YTD Return | +11.52%Best | -39.31% |
| 1Y Return | +17.48%Best | -49.88% |
| 3Y Return (annualized) | +20.62%Best | -44.32% |
| 5Y Return (annualized) | +12.73%Best | -30.54% |
| Volatility (annualized) | 14.9%Best | 55.8% |
| Max Drawdown | -34.1% | - |
| $10,000 over 5 years | $18,205Best | $1,617 |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust |
| Category | Equity | Alternative |
| Style | Large Cap Blend | Trading-Inverse Equity |
| Inception | Jan 22, 1993 | Nov 5, 2008 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 5, 2008 to Sep 10, 2026 (17.8 years).
SPY vs TZA growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 17.8 years both funds cover.
SPY vs TZA Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Direxion Daily Small Cap Bear 3X ETF (TZA) is an ETF from Direxion Shares ETF Trust. Over the past year SPY returned +17.48% while TZA returned -49.88%. Year to date, SPY is up 11.52% versus a loss of 39.31% for TZA.
Over three years, SPY compounded at +20.62% per year against -44.32% for TZA; over five years the annualized figures are +12.73% and -30.54% respectively. Across the full 18-year window we track, SPY has the edge at +12.74% annualized vs -48.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.8% compared with 14.9% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.85. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
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 0.98% against 4.79% for TZA.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 3 in TZA, totalling 100.0% and 114.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 3 in TZA, against full books of 505 and 11.
You are not choosing between two funds in isolation.
Whichever of SPY and TZA you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $90 a year on a $10,000 investment.
Which performed better, SPY or TZA?
Over the past year SPY returned +17.48% vs -49.88% for TZA, so SPY leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +12.74% vs -48.37% for TZA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or TZA?
TZA has been the more volatile fund at 55.8% annualized versus 14.9% for SPY.
Should I hold both SPY and TZA?
SPY and TZA have a monthly-return correlation of -0.85, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, SPY or TZA?
SPY yields 0.98% while TZA yields 4.79%, so TZA currently pays the higher dividend yield.
Is TZA better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.85, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.