SPY vs USFR
State Street SPDR S&P 500 ETF Trust vs WisdomTree Floating Rate Treasury Fund
Which is better, SPY or USFR?
Large Cap Blend against Ultrashort Term Bond.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | USFR |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.15% |
| AUM | $804.7B | $18.8B |
| Dividend Yield | 0.98% | 3.75% |
| Holdings | 505 | 6 |
| YTD Return | +12.09%Best | +2.80% |
| 1Y Return | +16.29%Best | +4.11% |
| 3Y Return (annualized) | +21.20%Best | +4.49% |
| 5Y Return (annualized) | +13.37%Best | +3.82% |
| Volatility (annualized) | 14.6% | 0.9%Best |
| Max Drawdown | -34.1% | -1.4%Best |
| $10,000 over 5 years | $18,728Best | $12,062 |
| Fund Family | State Street Investment Management | WisdomTree Investments |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Ultrashort Term Bond |
| Inception | Jan 22, 1993 | Feb 4, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 4, 2014 to Sep 18, 2026 (12.6 years).
SPY vs USFR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs USFR Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and WisdomTree Floating Rate Treasury Fund (USFR) is an ETF from WisdomTree Investments. Over the past year SPY returned +16.29% while USFR returned +4.11%. Year to date, SPY is up 12.09% versus a gain of 2.80% for USFR.
Over three years, SPY compounded at +21.20% per year against +4.49% for USFR; over five years the annualized figures are +13.37% and +3.82% respectively. Across the full 13-year window we track, SPY has the edge at +13.00% annualized vs +1.52%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.9% for USFR. 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 -34.1% for SPY and -1.4% for USFR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.07. They move largely independently of each other.
Fees and Cost Over Time
SPY charges 0.09% per year while USFR charges 0.15%. On a $10,000 position that is $9 vs $15 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 3.75% for USFR.
You are not choosing between two funds in isolation.
Whichever of SPY and USFR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or USFR?
SPY has an expense ratio of 0.09% while USFR charges 0.15%. SPY is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or USFR?
Over the past year SPY returned +16.29% vs +4.11% for USFR, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SPY annualized +13.00% vs +1.52% for USFR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or USFR?
SPY has been the more volatile fund at 14.6% annualized versus 0.9% for USFR. Worst drawdown: SPY -34.1% vs USFR -1.4%.
Should I hold both SPY and USFR?
SPY and USFR have a monthly-return correlation of 0.07, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or USFR?
SPY yields 0.98% while USFR yields 3.75%, so USFR currently pays the higher dividend yield.
Is USFR better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.