SPY vs UTWO
State Street SPDR S&P 500 ETF Trust vs F/m US Treasury 2 Year Note ETF
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 | UTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.15% | |
| AUM | $821.1B | $490M | |
| Dividend Yield | 1.01% | 3.84% | |
| Holdings | 505 | 2 | |
| YTD Return | +12.68% | +0.91% | |
| 1Y Return | +21.82% | +2.71% | |
| 3Y Return (annualized) | +21.98% | +4.07% | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 1.9% | |
| Max Drawdown | -56.5% | -2.0% | |
| Fund Family | State Street Investment Management | US Benchmark Series | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Aug 8, 2022 |
SPY vs UTWO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series. Over the past year SPY returned +21.82% while UTWO returned +2.71%. Year to date, SPY is up 12.68% versus a gain of 0.91% for UTWO.
Over three years, SPY compounded at +21.98% per year against +4.07% for UTWO. Across the full 4-year window we track, SPY has the edge at +8.81% annualized vs +2.97%. 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 1.9% for UTWO. 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 -2.0% for UTWO. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UTWO 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 1.01% against 3.84% for UTWO.
Holdings Overlap
SPY and UTWO 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 UTWO?
SPY has an expense ratio of 0.09% while UTWO charges 0.15%. SPY is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or UTWO?
Over the past year SPY returned +21.82% vs +2.71% for UTWO, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +8.81% vs +2.97% for UTWO. Past performance does not guarantee future results.
Which is riskier, SPY or UTWO?
SPY has been the more volatile fund at 15.3% annualized versus 1.9% for UTWO. Worst drawdown: SPY -56.5% vs UTWO -2.0%.
Should I hold both SPY and UTWO?
SPY and UTWO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UTWO?
SPY and UTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or UTWO?
SPY yields 1.01% while UTWO yields 3.84%, so UTWO currently pays the higher dividend yield.
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