SPY vs UFEB

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

MetricSPYUFEBWinner
Expense Ratio0.09%0.79%
AUM$789.1B$238M
Dividend Yield1.01%0.00%
Holdings50511
YTD Return+13.68%+6.87%
1Y Return+21.53%+12.19%
3Y Return (annualized)+21.44%+11.98%
5Y Return (annualized)+13.18%+7.34%
Volatility (annualized)15.3%6.6%
Max Drawdown-56.5%-13.3%
Fund FamilyState Street Investment ManagementInnovator ETFs Trust
CategoryEquityAlternative
InceptionJan 22, 1993Jan 31, 2020

SPY vs UFEB 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 - February (UFEB) is a ETF from Innovator ETFs Trust. Over the past year SPY returned +21.53% while UFEB returned +12.19%. Year to date, SPY is up 13.68% versus a gain of 6.87% for UFEB.

Over three years, SPY compounded at +21.44% per year against +11.98% for UFEB; over five years the annualized figures are +13.18% and +7.34% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs +7.44%. 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 6.6% for UFEB. 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 -13.3% for UFEB. 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 0.90. 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 UFEB 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 UFEB.

Frequently Asked Questions

Which is cheaper, SPY or UFEB?

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

Over the past year SPY returned +21.53% vs +12.19% for UFEB, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SPY annualized +8.85% vs +7.44% for UFEB. Past performance does not guarantee future results.

Which is riskier, SPY or UFEB?

SPY has been the more volatile fund at 15.3% annualized versus 6.6% for UFEB. Worst drawdown: SPY -56.5% vs UFEB -13.3%.

Should I hold both SPY and UFEB?

SPY and UFEB have a monthly-return correlation of 0.90, 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 UFEB?

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

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