SPY vs WAR
State Street SPDR S&P 500 ETF Trust vs US Global Technology And Aerospace & Defense ETF
Quick Verdict
SPY has a lower expense ratio. WAR delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | WAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.60% | |
| AUM | $821.1B | $40M | |
| Dividend Yield | 1.01% | 10.22% | |
| Holdings | 505 | 30 | |
| YTD Return | +12.93% | +39.39% | |
| 1Y Return | +20.62% | +58.22% | |
| 3Y Return (annualized) | +22.00% | - | |
| 5Y Return (annualized) | +13.33% | - | |
| Volatility (annualized) | 15.3% | 32.3% | |
| Max Drawdown | -56.5% | -25.0% | |
| Fund Family | State Street Investment Management | U.S. Global Investors, Inc. | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 30, 2024 |
SPY vs WAR Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and US Global Technology And Aerospace & Defense ETF (WAR) is a ETF from U.S. Global Investors, Inc.. Over the past year SPY returned +20.62% while WAR returned +58.22%. Year to date, SPY is up 12.93% versus a gain of 39.39% for WAR.
Risk: Volatility and Drawdowns
WAR has been the more volatile fund, with annualized monthly volatility of 32.3% 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 -25.0% for WAR. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while WAR charges 0.60%. On a $10,000 position that is $9 vs $60 annually, a gap of $51 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 10.22% for WAR.
Holdings Overlap
SPY and WAR share 10 holdings out of 523 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or WAR?
SPY has an expense ratio of 0.09% while WAR charges 0.60%. SPY is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, SPY or WAR?
Over the past year SPY returned +20.62% vs +58.22% for WAR, so WAR leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.82% vs +46.04% for WAR. Past performance does not guarantee future results.
Which is riskier, SPY or WAR?
WAR has been the more volatile fund at 32.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs WAR -25.0%.
Should I hold both SPY and WAR?
SPY and WAR have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and WAR?
SPY and WAR share 10 common holdings with a 7.6% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, SPY or WAR?
SPY yields 1.01% while WAR yields 10.22%, so WAR currently pays the higher dividend yield.
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