SPY vs UST
State Street SPDR S&P 500 ETF Trust vs ProShares Ultra 7-10 Year Treasury
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | UST | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.95% | |
| AUM | $821.1B | $14M | |
| Dividend Yield | 1.01% | 3.64% | |
| Holdings | 505 | 6 | |
| YTD Return | +12.93% | -4.10% | |
| 1Y Return | +20.62% | -0.84% | |
| 3Y Return (annualized) | +22.00% | +1.68% | |
| 5Y Return (annualized) | +13.33% | -8.14% | |
| Volatility (annualized) | 15.3% | 12.6% | |
| Max Drawdown | -56.5% | -48.1% | |
| Fund Family | State Street Investment Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Jan 19, 2010 |
SPY vs UST Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and ProShares Ultra 7-10 Year Treasury (UST) is a ETF from ProShares. Over the past year SPY returned +20.62% while UST returned -0.84%. Year to date, SPY is up 12.93% versus a loss of 4.10% for UST.
Over three years, SPY compounded at +22.00% per year against +1.68% for UST; over five years the annualized figures are +13.33% and -8.14% respectively. Across the full 17-year window we track, SPY has the edge at +8.82% annualized vs +1.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.6% for UST. 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 -48.1% for UST. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UST charges 0.95%. On a $10,000 position that is $9 vs $95 annually, a gap of $86 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.64% for UST.
Holdings Overlap
SPY and UST share 0 holdings out of 505 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 UST?
SPY has an expense ratio of 0.09% while UST charges 0.95%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SPY or UST?
Over the past year SPY returned +20.62% vs -0.84% for UST, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.82% vs +1.59% for UST. Past performance does not guarantee future results.
Which is riskier, SPY or UST?
SPY has been the more volatile fund at 15.3% annualized versus 12.6% for UST. Worst drawdown: SPY -56.5% vs UST -48.1%.
Should I hold both SPY and UST?
SPY and UST have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UST?
SPY and UST share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or UST?
SPY yields 1.01% while UST yields 3.64%, so UST currently pays the higher dividend yield.
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