^BSE500 vs. SPY

Last updated Jun 4, 2026

^BSE500 (S&P BSE-500) is an index, while SPY (State Street SPDR S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, ^BSE500 returned 12.41%/yr vs 19.71%/yr for SPY. At a 0.09 correlation, their price movements are largely independent.

Performance

^BSE500 vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a ₹10,000 investment in S&P BSE-500 (^BSE500) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

^BSE500 is traded in INR, while SPY is traded in USD. To make them comparable, the SPY values have been converted to INR using the latest available exchange rates.

Returns By Period

In the year-to-date period, ^BSE500 achieves a -6.96% return, which is significantly lower than SPY's 18.43% return. Over the past 10 years, ^BSE500 has underperformed SPY with an annualized return of 12.41%, while SPY has yielded a comparatively higher 19.71% annualized return.

^BSE500

• 1D: -1.11%
• 1M: -2.53%
• YTD: -6.96%
• 6M: -6.38%
• 1Y: -2.28%
• 3Y*: 11.51%
• 5Y*: 10.31%
• 10Y*: 12.41%

SPY

• 1D: 0.00%
• 1M: 6.00%
• YTD: 18.43%
• 6M: 18.03%
• 1Y: 43.32%
• 3Y*: 28.73%
• 5Y*: 20.22%
• 10Y*: 19.71%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^BSE500 vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^BSE500 S&P BSE-500	-6.96%	6.41%	14.55%	24.85%	3.34%	30.11%	16.80%	7.75%	-3.08%	35.94%
SPY State Street SPDR S&P 500 ETF	18.15%	23.35%	28.67%	27.05%	-9.38%	31.29%	21.31%	34.55%	4.07%	14.15%

Correlation

The correlation between ^BSE500 and SPY is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.08
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.11
Correlation (All Time) Calculated using the full available price history since Mar 8, 2011	0.09

The correlation between ^BSE500 and SPY shifts across timeframes, from 0.03 (1 year) to 0.13 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

^BSE500 vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^BSE500

^BSE500 Risk / Return Rank: 6
^BSE500 Sharpe Ratio Rank: 6
^BSE500 Sortino Ratio Rank: 6
^BSE500 Omega Ratio Rank: 6
^BSE500 Calmar Ratio Rank: 7
^BSE500 Martin Ratio Rank: 6

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^BSE500 vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for S&P BSE-500 (^BSE500) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^BSE500	SPY	Difference
Sharpe ratio Return per unit of total volatility	-0.17	3.77	-3.94
Sortino ratio Return per unit of downside risk	-0.14	4.98	-5.12
Omega ratio Gain probability vs. loss probability	0.98	1.69	-0.70
Calmar ratio Return relative to maximum drawdown	-0.16	6.63	-6.79
Martin ratio Return relative to average drawdown	-0.51	25.79	-26.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^BSE500 vs. SPY - Sharpe Ratio Comparison

The current ^BSE500 Sharpe Ratio is -0.17, which is lower than the SPY Sharpe Ratio of 3.77. The chart below compares the historical Sharpe Ratios of ^BSE500 and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^BSE500	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.17	3.77	-3.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	1.25	-0.52
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	1.17	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	0.85	-0.14

Drawdowns

^BSE500 vs. SPY - Drawdown Comparison

The maximum ^BSE500 drawdown since its inception was -38.39%, smaller than the maximum SPY drawdown of -41.57%. Use the drawdown chart below to compare losses from any high point for ^BSE500 and SPY.

Drawdown Indicators

	^BSE500	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-38.39%	-41.57%	+3.18%
Max Drawdown (1Y) Largest decline over 1 year	-14.86%	-6.57%	-8.29%
Max Drawdown (3Y) Largest decline over 3 years	-18.96%	-19.15%	+0.19%
Max Drawdown (5Y) Largest decline over 5 years	-18.96%	-19.92%	+0.96%
Max Drawdown (10Y) Largest decline over 10 years	-38.39%	-28.26%	-10.13%
Current Drawdown Current decline from peak	-9.80%	0.00%	-9.80%
Average Drawdown Average peak-to-trough decline	-5.95%	-5.18%	-0.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.52%	1.68%	+2.84%

Volatility

^BSE500 vs. SPY - Volatility Comparison

S&P BSE-500 (^BSE500) has a higher volatility of 4.12% compared to State Street SPDR S&P 500 ETF (SPY) at 2.82%. This indicates that ^BSE500's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^BSE500	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.12%	2.82%	+1.30%
Volatility (6M) Calculated over the trailing 6-month period	12.21%	8.42%	+3.79%
Volatility (1Y) Calculated over the trailing 1-year period	13.82%	11.57%	+2.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.34%	16.27%	-1.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.19%	16.97%	-0.78%

Frequently Asked Questions

Can I hold both ^BSE500 and SPY in my portfolio?

^BSE500 and SPY have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^BSE500 or SPY?

^BSE500 has higher volatility (4.12%) compared to SPY (2.82%). In terms of maximum drawdown, ^BSE500 dropped -38.39% vs SPY's -41.57%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (3.77 vs -0.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.