SPY vs UFO
State Street SPDR S&P 500 ETF Trust vs Procure Space ETF
Quick Verdict
SPY has a lower expense ratio. UFO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | UFO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.94% | |
| AUM | $821.1B | $633M | |
| Dividend Yield | 1.01% | 0.34% | |
| Holdings | 505 | 51 | |
| YTD Return | +12.22% | +13.46% | |
| 1Y Return | +20.83% | +54.35% | |
| 3Y Return (annualized) | +21.70% | +37.65% | |
| 5Y Return (annualized) | +12.98% | +11.12% | |
| Volatility (annualized) | 15.3% | 32.3% | |
| Max Drawdown | -56.5% | -50.3% | |
| Fund Family | State Street Investment Management | Procure ETFs | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Apr 10, 2019 |
SPY vs UFO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Procure Space ETF (UFO) is a ETF from Procure ETFs. Over the past year SPY returned +20.83% while UFO returned +54.35%. Year to date, SPY is up 12.22% versus a gain of 13.46% for UFO.
Over three years, SPY compounded at +21.70% per year against +37.65% for UFO; over five years the annualized figures are +12.98% and +11.12% respectively. Across the full 7-year window we track, UFO has the edge at +9.70% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UFO has been the more volatile fund, with annualized monthly volatility of 32.3% 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 -50.3% for UFO. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UFO charges 0.94%. On a $10,000 position that is $9 vs $94 annually, a gap of $85 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.34% for UFO.
Holdings Overlap
SPY and UFO share 10 holdings out of 559 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or UFO?
SPY has an expense ratio of 0.09% while UFO charges 0.94%. SPY is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, SPY or UFO?
Over the past year SPY returned +20.83% vs +54.35% for UFO, so UFO leads on 1-year performance. Over the longest common window we track (7 years), SPY annualized +8.79% vs +9.70% for UFO. Past performance does not guarantee future results.
Which is riskier, SPY or UFO?
UFO has been the more volatile fund at 32.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs UFO -50.3%.
Should I hold both SPY and UFO?
SPY and UFO have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UFO?
SPY and UFO share 10 common holdings with a 1.4% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, SPY or UFO?
SPY yields 1.01% while UFO yields 0.34%, so SPY currently pays the higher dividend yield.
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