SPY vs USOY

Quick Verdict

SPY has a lower expense ratio. USOY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: USOYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYUSOYWinner
Expense Ratio0.09%1.12%
AUM$789.1B$61M
Dividend Yield1.01%97.34%
Holdings50515
YTD Return+13.68%+45.77%
1Y Return+21.53%+41.65%
3Y Return (annualized)+21.44%-
5Y Return (annualized)+13.18%-
Volatility (annualized)15.3%31.7%
Max Drawdown-56.5%-25.5%
Fund FamilyState Street Investment ManagementDefiance ETFs, LLC
CategoryEquityAlternative
InceptionJan 22, 1993May 9, 2024

SPY vs USOY Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Defiance Oil Enhanced Options Income ETF (USOY) is a ETF from Defiance ETFs, LLC. Over the past year SPY returned +21.53% while USOY returned +41.65%. Year to date, SPY is up 13.68% versus a gain of 45.77% for USOY.

Risk: Volatility and Drawdowns

USOY has been the more volatile fund, with annualized monthly volatility of 31.7% 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 -25.5% for USOY. 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 -0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while USOY charges 1.12%. On a $10,000 position that is $9 vs $112 annually, a gap of $103 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 97.34% for USOY.

Holdings Overlap

0.0%overlap

SPY and USOY share 0 holdings out of 506 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 USOY?

SPY has an expense ratio of 0.09% while USOY charges 1.12%. SPY is the cheaper option. On a $10,000 investment, that is $103 per year of difference.

Which performed better, SPY or USOY?

Over the past year SPY returned +21.53% vs +41.65% for USOY, so USOY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.85% vs +20.28% for USOY. Past performance does not guarantee future results.

Which is riskier, SPY or USOY?

USOY has been the more volatile fund at 31.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USOY -25.5%.

Should I hold both SPY and USOY?

SPY and USOY have a monthly-return correlation of -0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and USOY?

SPY and USOY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, SPY or USOY?

SPY yields 1.01% while USOY yields 97.34%, so USOY currently pays the higher dividend yield.

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