SPY vs WDEF
State Street SPDR S&P 500 ETF Trust vs WisdomTree Europe Defense Fund ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | WDEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.45% | |
| AUM | $789.1B | $95M | |
| Dividend Yield | 1.01% | 0.08% | |
| Holdings | 505 | 38 | |
| YTD Return | +13.68% | +10.24% | |
| 1Y Return | +21.53% | +15.30% | |
| 3Y Return (annualized) | +21.44% | - | |
| 5Y Return (annualized) | +13.18% | - | |
| Volatility (annualized) | 15.3% | 33.0% | |
| Max Drawdown | -56.5% | -23.9% | |
| Fund Family | State Street Investment Management | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jul 17, 2025 |
SPY vs WDEF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and WisdomTree Europe Defense Fund ETF (WDEF) is a ETF from WisdomTree Investments. Over the past year SPY returned +21.53% while WDEF returned +15.30%. Year to date, SPY is up 13.68% versus a gain of 10.24% for WDEF.
Risk: Volatility and Drawdowns
WDEF has been the more volatile fund, with annualized monthly volatility of 33.0% 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 -23.9% for WDEF. 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while WDEF charges 0.45%. On a $10,000 position that is $9 vs $45 annually, a gap of $36 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.08% for WDEF.
Holdings Overlap
SPY and WDEF share 0 holdings out of 544 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 WDEF?
SPY has an expense ratio of 0.09% while WDEF charges 0.45%. SPY is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, SPY or WDEF?
Over the past year SPY returned +21.53% vs +15.30% for WDEF, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.85% vs +8.82% for WDEF. Past performance does not guarantee future results.
Which is riskier, SPY or WDEF?
WDEF has been the more volatile fund at 33.0% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs WDEF -23.9%.
Should I hold both SPY and WDEF?
SPY and WDEF have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and WDEF?
SPY and WDEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 544 unique securities.
Which pays a higher dividend, SPY or WDEF?
SPY yields 1.01% while WDEF yields 0.08%, so SPY currently pays the higher dividend yield.
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