SPY vs UCO
State Street SPDR S&P 500 ETF Trust vs ProShares Ultra Bloomberg Crude Oil
Quick Verdict
SPY has a lower expense ratio. UCO delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | UCO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $789.1B | $416M | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 9 | |
| YTD Return | +13.79% | +92.01% | |
| 1Y Return | +23.66% | +63.28% | |
| 3Y Return (annualized) | +21.40% | +5.75% | |
| 5Y Return (annualized) | +13.37% | +16.78% | |
| Volatility (annualized) | 15.3% | 65.1% | |
| Max Drawdown | -56.5% | -100.0% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Nov 24, 2008 |
SPY vs UCO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares Ultra Bloomberg Crude Oil (UCO) is a ETF from ProShares. Over the past year SPY returned +23.66% while UCO returned +63.28%. Year to date, SPY is up 13.79% versus a gain of 92.01% for UCO.
Over three years, SPY compounded at +21.40% per year against +5.75% for UCO; over five years the annualized figures are +13.37% and +16.78% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs -24.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UCO has been the more volatile fund, with annualized monthly volatility of 65.1% 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 UCO. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UCO 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 0.00% for UCO.
Holdings Overlap
SPY and UCO 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 UCO?
SPY has an expense ratio of 0.09% while UCO 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 UCO?
Over the past year SPY returned +23.66% vs +63.28% for UCO, so UCO leads on 1-year performance. Over the longest common window we track (18 years), SPY annualized +8.85% vs -24.57% for UCO. Past performance does not guarantee future results.
Which is riskier, SPY or UCO?
UCO has been the more volatile fund at 65.1% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs UCO -100.0%.
Should I hold both SPY and UCO?
SPY and UCO have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UCO?
SPY and UCO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or UCO?
SPY yields 1.01% while UCO yields 0.00%, so SPY currently pays the higher dividend yield.
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