BDFIX vs. SPSM

Last updated Jun 23, 2026

BDFIX (Baron Discovery Fund) and SPSM (State Street SPDR Portfolio S&P 600 Small Cap ETF) are both funds - BDFIX is a Small Cap Growth Equities fund managed by Baron Capital Group, Inc., while SPSM is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index. Over the past 10 years, BDFIX returned 13.96%/yr vs 11.51%/yr for SPSM. Their correlation of 0.81 suggests significant overlap in exposure. BDFIX charges 1.05%/yr vs 0.03%/yr for SPSM.

Performance

BDFIX vs. SPSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Discovery Fund (BDFIX) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BDFIX achieves a 3.07% return, which is significantly lower than SPSM's 19.74% return. Over the past 10 years, BDFIX has outperformed SPSM with an annualized return of 13.96%, while SPSM has yielded a comparatively lower 11.51% annualized return.

BDFIX

• 1D: 2.22%
• 1M: 4.22%
• YTD: 3.07%
• 6M: -0.11%
• 1Y: 9.66%
• 3Y*: 12.89%
• 5Y*: 0.01%
• 10Y*: 13.96%

SPSM

• 1D: 0.09%
• 1M: 4.62%
• YTD: 19.74%
• 6M: 16.75%
• 1Y: 36.81%
• 3Y*: 16.39%
• 5Y*: 6.72%
• 10Y*: 11.51%

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

BDFIX vs. SPSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BDFIX Baron Discovery Fund	3.07%	10.96%	16.28%	22.58%	-35.12%	4.84%	66.15%	26.85%	0.66%	35.84%
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	19.74%	6.11%	8.55%	16.11%	-16.12%	26.67%	11.69%	25.85%	-11.17%	15.44%

Correlation

The correlation between BDFIX and SPSM is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Oct 3, 2013	0.81

The correlation between BDFIX and SPSM has been stable across timeframes, ranging from 0.78 to 0.82 - a consistent structural relationship.

Return for Risk

BDFIX vs. SPSM — Risk / Return Rank

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

BDFIX

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

SPSM

SPSM Risk / Return Rank: 71
SPSM Sharpe Ratio Rank: 66
SPSM Sortino Ratio Rank: 69
SPSM Omega Ratio Rank: 61
SPSM Calmar Ratio Rank: 83
SPSM Martin Ratio Rank: 77

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.

BDFIX vs. SPSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Discovery Fund (BDFIX) and State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BDFIX	SPSM	Difference
Sharpe ratio: Return per unit of total volatility	0.50	2.10	-1.60
Sortino ratio: Return per unit of downside risk	0.85	3.00	-2.14
Omega ratio: Gain probability vs. loss probability	1.10	1.36	-0.26
Calmar ratio: Return relative to maximum drawdown	0.55	4.24	-3.69
Martin ratio: Return relative to average drawdown	1.63	14.31	-12.68

BDFIX vs. SPSM - Sharpe Ratio Comparison

The current BDFIX Sharpe Ratio is 0.50, which is lower than the SPSM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of BDFIX and SPSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BDFIX vs. SPSM - Drawdown Comparison

The maximum BDFIX drawdown since its inception was -46.39%, which is greater than SPSM's maximum drawdown of -42.89%. Use the drawdown chart below to compare losses from any high point for BDFIX and SPSM.

Drawdown Indicators

	BDFIX	SPSM	Difference
Max Drawdown Largest peak-to-trough decline	-46.39%	-42.89%	-3.50%
Max Drawdown (1Y) Largest decline over 1 year	-17.94%	-8.72%	-9.22%
Max Drawdown (3Y) Largest decline over 3 years	-24.26%	-27.94%	+3.68%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-27.94%	-17.44%
Max Drawdown (10Y) Largest decline over 10 years	-46.39%	-42.89%	-3.50%
Current Drawdown Current decline from peak	-6.28%	-0.07%	-6.21%
Average Drawdown Average peak-to-trough decline	-14.59%	-7.90%	-6.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.99%	2.58%	+3.41%

Volatility

BDFIX vs. SPSM - Volatility Comparison

Baron Discovery Fund (BDFIX) has a higher volatility of 6.85% compared to State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) at 4.90%. This indicates that BDFIX's price experiences larger fluctuations and is considered to be riskier than SPSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BDFIX	SPSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.85%	4.90%	+1.95%
Volatility (6M) Calculated over the trailing 6-month period	15.11%	12.03%	+3.08%
Volatility (1Y) Calculated over the trailing 1-year period	19.77%	17.68%	+2.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.37%	21.42%	+4.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.27%	23.01%	+2.26%

BDFIX vs. SPSM - Expense Ratio Comparison

BDFIX has a 1.05% expense ratio, which is higher than SPSM's 0.03% expense ratio.

Dividends

BDFIX vs. SPSM - Dividend Comparison

BDFIX has not paid dividends to shareholders, while SPSM's dividend yield for the trailing twelve months is around 1.74%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BDFIX Baron Discovery Fund	0.00%	0.00%	0.00%	0.00%	0.00%	3.68%	3.05%	0.13%	8.78%	0.21%	1.97%	0.00%
SPSM State Street SPDR Portfolio S&P 600 Small Cap ETF	1.74%	1.62%	1.85%	1.61%	1.38%	1.40%	1.34%	1.58%	1.82%	1.51%	1.49%	2.37%

Frequently Asked Questions

Can I hold both BDFIX and SPSM in my portfolio?

BDFIX and SPSM have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BDFIX or SPSM?

BDFIX has higher volatility (6.85%) compared to SPSM (4.90%). In terms of maximum drawdown, BDFIX dropped -46.39% vs SPSM's -42.89%.

Which has better risk-adjusted returns?

SPSM currently has the higher Sharpe Ratio (2.10 vs 0.50), 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.