SPY vs USSG
State Street SPDR S&P 500 ETF Trust vs Xtrackers MSCI USA Selection Equity ETF
Quick Verdict
USSG has a lower expense ratio. USSG delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | USSG | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $821.1B | $599M | |
| Dividend Yield | 1.01% | 1.00% | |
| Holdings | 505 | 269 | |
| YTD Return | +12.22% | +12.92% | |
| 1Y Return | +20.83% | +23.24% | |
| 3Y Return (annualized) | +21.70% | +22.27% | |
| 5Y Return (annualized) | +12.98% | +13.10% | |
| Volatility (annualized) | 15.3% | 16.9% | |
| Max Drawdown | -56.5% | -34.4% | |
| Fund Family | State Street Investment Management | Xtrackers ETFs | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 6, 2019 |
SPY vs USSG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Xtrackers MSCI USA Selection Equity ETF (USSG) is a ETF from Xtrackers ETFs. Over the past year SPY returned +20.83% while USSG returned +23.24%. Year to date, SPY is up 12.22% versus a gain of 12.92% for USSG.
Over three years, SPY compounded at +21.70% per year against +22.27% for USSG; over five years the annualized figures are +12.98% and +13.10% respectively. Across the full 8-year window we track, USSG has the edge at +16.39% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USSG has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -34.4% for USSG. 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 0.99. 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 USSG charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.00% for USSG.
Holdings Overlap
SPY and USSG share 238 holdings out of 530 unique holdings combined, representing a 52.5% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or USSG?
SPY has an expense ratio of 0.09% while USSG charges 0.09%. USSG is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SPY or USSG?
Over the past year SPY returned +20.83% vs +23.24% for USSG, so USSG leads on 1-year performance. Over the longest common window we track (8 years), SPY annualized +8.79% vs +16.39% for USSG. Past performance does not guarantee future results.
Which is riskier, SPY or USSG?
USSG has been the more volatile fund at 16.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USSG -34.4%.
Should I hold both SPY and USSG?
SPY and USSG have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and USSG?
SPY and USSG share 238 common holdings with a 52.5% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, SPY or USSG?
SPY yields 1.01% while USSG yields 1.00%, so SPY currently pays the higher dividend yield.
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