SPY vs ZVOL
State Street SPDR S&P 500 ETF Trust vs Volatility Premium Plus 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 | ZVOL | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.42% | |
| AUM | $821.1B | $16M | |
| Dividend Yield | 1.01% | 74.79% | |
| Holdings | 505 | 5 | |
| YTD Return | +12.68% | -19.85% | |
| 1Y Return | +21.82% | -11.37% | |
| 3Y Return (annualized) | +21.98% | -1.98% | |
| 5Y Return (annualized) | +12.89% | - | |
| Volatility (annualized) | 15.3% | 55.4% | |
| Max Drawdown | -56.5% | -64.5% | |
| Fund Family | State Street Investment Management | Volatility Shares, LLC | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Nov 22, 2024 |
SPY vs ZVOL Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Volatility Premium Plus ETF (ZVOL) is a ETF from Volatility Shares, LLC. Over the past year SPY returned +21.82% while ZVOL returned -11.37%. Year to date, SPY is up 12.68% versus a loss of 19.85% for ZVOL.
Over three years, SPY compounded at +21.98% per year against -1.98% for ZVOL. Across the full 3-year window we track, SPY has the edge at +8.81% annualized vs +5.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZVOL has been the more volatile fund, with annualized monthly volatility of 55.4% 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 -64.5% for ZVOL. 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while ZVOL charges 1.42%. On a $10,000 position that is $9 vs $142 annually, a gap of $133 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 74.79% for ZVOL.
Frequently Asked Questions
Which is cheaper, SPY or ZVOL?
SPY has an expense ratio of 0.09% while ZVOL charges 1.42%. SPY is the cheaper option. On a $10,000 investment, that is $133 per year of difference.
Which performed better, SPY or ZVOL?
Over the past year SPY returned +21.82% vs -11.37% for ZVOL, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.81% vs +5.30% for ZVOL. Past performance does not guarantee future results.
Which is riskier, SPY or ZVOL?
ZVOL has been the more volatile fund at 55.4% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs ZVOL -64.5%.
Should I hold both SPY and ZVOL?
SPY and ZVOL have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SPY or ZVOL?
SPY yields 1.01% while ZVOL yields 74.79%, so ZVOL currently pays the higher dividend yield.
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