SPY vs UDEC

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

MetricSPYUDECWinner
Expense Ratio0.09%0.79%
AUM$789.1B$247M
Dividend Yield1.01%0.00%
Holdings5056
YTD Return+13.75%+7.11%
1Y Return+22.91%+14.55%
3Y Return (annualized)+21.67%+11.96%
5Y Return (annualized)+13.32%+7.50%
Volatility (annualized)15.3%54.7%
Max Drawdown-56.5%-68.5%
Fund FamilyState Street Investment ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionJan 22, 1993Dec 1, 2019

SPY vs UDEC 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 - December (UDEC) is a ETF from Innovator ETFs Trust. Over the past year SPY returned +22.91% while UDEC returned +14.55%. Year to date, SPY is up 13.75% versus a gain of 7.11% for UDEC.

Over three years, SPY compounded at +21.67% per year against +11.96% for UDEC; over five years the annualized figures are +13.32% and +7.50% respectively. Across the full 25-year window we track, SPY has the edge at +8.85% annualized vs +1.00%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UDEC has been the more volatile fund, with annualized monthly volatility of 54.7% 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 -68.5% for UDEC. 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while UDEC 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 UDEC.

Frequently Asked Questions

Which is cheaper, SPY or UDEC?

SPY has an expense ratio of 0.09% while UDEC 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 UDEC?

Over the past year SPY returned +22.91% vs +14.55% for UDEC, so SPY leads on 1-year performance. Over the longest common window we track (25 years), SPY annualized +8.85% vs +1.00% for UDEC. Past performance does not guarantee future results.

Which is riskier, SPY or UDEC?

UDEC has been the more volatile fund at 54.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs UDEC -68.5%.

Should I hold both SPY and UDEC?

SPY and UDEC have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SPY or UDEC?

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

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