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

MetricSPYUSRDWinner
Expense Ratio0.09%0.29%
AUM$789.1B$1M
Dividend Yield1.01%0.37%
Holdings505103
YTD Return+13.79%+11.85%
1Y Return+23.66%+11.19%
3Y Return (annualized)+21.40%-
5Y Return (annualized)+13.37%-
Volatility (annualized)15.3%16.7%
Max Drawdown-56.5%-22.7%
Fund FamilyState Street Investment ManagementThemes ETFs
CategoryEquityEquity
InceptionJan 22, 1993Dec 13, 2023

SPY vs USRD Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Themes US R&D Champions ETF (USRD) is a ETF from Themes ETFs. Over the past year SPY returned +23.66% while USRD returned +11.19%. Year to date, SPY is up 13.79% versus a gain of 11.85% for USRD.

Risk: Volatility and Drawdowns

USRD has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -22.7% for USRD. 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while USRD charges 0.29%. On a $10,000 position that is $9 vs $29 annually, a gap of $20 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.37% for USRD.

Holdings Overlap

23.3%overlap

SPY and USRD share 48 holdings out of 506 unique holdings combined, representing a 23.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in USRDDifference
AAPL7.09%2.33%4.76%
MSFT4.43%1.79%2.64%
AMZN3.69%1.64%2.05%
GOOGLProProPro
AVGOProProPro
AMDProProPro
METAProProPro
LLYProProPro
PANWProProPro
DDOGProProPro
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Frequently Asked Questions

Which is cheaper, SPY or USRD?

SPY has an expense ratio of 0.09% while USRD charges 0.29%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, SPY or USRD?

Over the past year SPY returned +23.66% vs +11.19% for USRD, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.85% vs +17.96% for USRD. Past performance does not guarantee future results.

Which is riskier, SPY or USRD?

USRD has been the more volatile fund at 16.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USRD -22.7%.

Should I hold both SPY and USRD?

SPY and USRD have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and USRD?

SPY and USRD share 48 common holdings with a 23.3% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, SPY or USRD?

SPY yields 1.01% while USRD yields 0.37%, so SPY currently pays the higher dividend yield.

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