SPY vs WFH
State Street SPDR S&P 500 ETF Trust vs Direxion Work From Home ETF
Quick Verdict
SPY has a lower expense ratio. WFH delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | WFH | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.45% | |
| AUM | $789.1B | $13M | |
| Dividend Yield | 1.01% | 1.05% | |
| Holdings | 505 | 41 | |
| YTD Return | +14.47% | +15.01% | |
| 1Y Return | +21.96% | +24.89% | |
| 3Y Return (annualized) | +21.70% | +20.91% | |
| 5Y Return (annualized) | +13.30% | +5.89% | |
| Volatility (annualized) | 15.3% | 21.9% | |
| Max Drawdown | -56.5% | -51.2% | |
| Fund Family | State Street Investment Management | Direxion Funds | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jun 25, 2020 |
SPY vs WFH Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Direxion Work From Home ETF (WFH) is a ETF from Direxion Funds. Over the past year SPY returned +21.96% while WFH returned +24.89%. Year to date, SPY is up 14.47% versus a gain of 15.01% for WFH.
Over three years, SPY compounded at +21.70% per year against +20.91% for WFH; over five years the annualized figures are +13.30% and +5.89% respectively. Across the full 5-year window we track, SPY has the edge at +8.87% annualized vs +8.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WFH has been the more volatile fund, with annualized monthly volatility of 21.9% 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 -51.2% for WFH. 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 usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while WFH 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 1.05% for WFH.
Frequently Asked Questions
Which is cheaper, SPY or WFH?
SPY has an expense ratio of 0.09% while WFH 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 WFH?
Over the past year SPY returned +21.96% vs +24.89% for WFH, so WFH leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.87% vs +8.01% for WFH. Past performance does not guarantee future results.
Which is riskier, SPY or WFH?
WFH has been the more volatile fund at 21.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs WFH -51.2%.
Should I hold both SPY and WFH?
SPY and WFH have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SPY or WFH?
SPY yields 1.01% while WFH yields 1.05%, so WFH currently pays the higher dividend yield.
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