SPY vs UAUG

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYUAUGWinner
Expense Ratio0.09%0.79%
AUM$789.1B$162M
Dividend Yield1.01%0.00%
Holdings5056
YTD Return+13.79%+7.58%
1Y Return+23.66%+12.65%
3Y Return (annualized)+21.40%+13.44%
5Y Return (annualized)+13.37%+8.46%
Volatility (annualized)15.3%7.8%
Max Drawdown-56.5%-13.9%
Fund FamilyState Street Investment ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionJan 22, 1993Jul 31, 2019

SPY vs UAUG Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Innovator US Equity Ultra Buffer ETF - August (UAUG) is a ETF from Innovator ETFs Trust. Over the past year SPY returned +23.66% while UAUG returned +12.65%. Year to date, SPY is up 13.79% versus a gain of 7.58% for UAUG.

Over three years, SPY compounded at +21.40% per year against +13.44% for UAUG; over five years the annualized figures are +13.37% and +8.46% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs +8.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.8% for UAUG. 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 -13.9% for UAUG. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SPY charges 0.09% per year while UAUG charges 0.79%. On a $10,000 position that is $9 vs $79 annually, a gap of $70 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for UAUG.

Frequently Asked Questions

Which is cheaper, SPY or UAUG?

SPY has an expense ratio of 0.09% while UAUG charges 0.79%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.

Which performed better, SPY or UAUG?

Over the past year SPY returned +23.66% vs +12.65% for UAUG, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SPY annualized +8.85% vs +8.14% for UAUG. Past performance does not guarantee future results.

Which is riskier, SPY or UAUG?

SPY has been the more volatile fund at 15.3% annualized versus 7.8% for UAUG. Worst drawdown: SPY -56.5% vs UAUG -13.9%.

Should I hold both SPY and UAUG?

SPY and UAUG have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, SPY or UAUG?

SPY yields 1.01% while UAUG yields 0.00%, so SPY currently pays the higher dividend yield.

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