SPY vs WEBS
State Street SPDR S&P 500 ETF Trust vs Direxion Daily Dow Jones Internet Bear 3X 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 | WEBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.07% | |
| AUM | $789.1B | $8M | |
| Dividend Yield | 1.01% | 2.83% | |
| Holdings | 505 | 6 | |
| YTD Return | +13.39% | -30.77% | |
| 1Y Return | +22.52% | -29.05% | |
| 3Y Return (annualized) | +21.36% | -49.82% | |
| 5Y Return (annualized) | +13.19% | -36.27% | |
| Volatility (annualized) | 15.3% | 65.5% | |
| Max Drawdown | -56.5% | -99.7% | |
| Fund Family | State Street Investment Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Nov 7, 2019 |
SPY vs WEBS Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year SPY returned +22.52% while WEBS returned -29.05%. Year to date, SPY is up 13.39% versus a loss of 30.77% for WEBS.
Over three years, SPY compounded at +21.36% per year against -49.82% for WEBS; over five years the annualized figures are +13.19% and -36.27% respectively. Across the full 7-year window we track, SPY has the edge at +8.84% annualized vs -52.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEBS has been the more volatile fund, with annualized monthly volatility of 65.5% 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 -99.7% for WEBS. 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 -0.76. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while WEBS charges 1.07%. On a $10,000 position that is $9 vs $107 annually, a gap of $98 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.83% for WEBS.
Holdings Overlap
SPY and WEBS 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 WEBS?
SPY has an expense ratio of 0.09% while WEBS charges 1.07%. SPY is the cheaper option. On a $10,000 investment, that is $98 per year of difference.
Which performed better, SPY or WEBS?
Over the past year SPY returned +22.52% vs -29.05% for WEBS, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SPY annualized +8.84% vs -52.45% for WEBS. Past performance does not guarantee future results.
Which is riskier, SPY or WEBS?
WEBS has been the more volatile fund at 65.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs WEBS -99.7%.
Should I hold both SPY and WEBS?
SPY and WEBS have a monthly-return correlation of -0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and WEBS?
SPY and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or WEBS?
SPY yields 1.01% while WEBS yields 2.83%, so WEBS currently pays the higher dividend yield.
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