DEF vs. SPY

Last updated Jun 23, 2026

DEF (Invesco Defensive Equity ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - DEF is a Large Cap Growth Equities fund tracking the Invesco Defensive Equity Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. At a 0.30 correlation, their price movements are largely independent. DEF charges 0.53%/yr vs 0.09%/yr for SPY.

Performance

DEF vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Defensive Equity ETF (DEF) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

DEF

• 1D: -3.03%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

DEF vs. SPY - Yearly Performance Comparison

	2026 (YTD)
DEF Invesco Defensive Equity ETF	-11.11%
SPY State Street SPDR S&P 500 ETF	1.19%

Correlation

The correlation between DEF and SPY is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 8, 2026	0.30

DEF vs. SPY - Sectors Allocation Comparison

Sectors	DEF	SPY
Healthcare	16.8%	8.3%
Financial Services	16.1%	11.1%
Industrials	15.6%	7.8%
Consumer Defensive	12.9%	4.5%
Technology	12.1%	39.0%
Consumer Cyclical	10.1%	9.9%
Utilities	4.8%	2.1%
Communication Services	4.7%	10.6%
Real Estate	3.8%	1.8%
Basic Materials	2.1%	1.7%
Energy	1.0%	3.1%

Return for Risk

DEF vs. SPY — Risk / Return Rank

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

DEF

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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.

DEF vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Defensive Equity ETF (DEF) 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.

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.

	DEF	SPY	Difference
Sharpe ratio: Return per unit of total volatility	—	2.16	—
Sortino ratio: Return per unit of downside risk	—	2.91	—
Omega ratio: Gain probability vs. loss probability	—	1.39	—
Calmar ratio: Return relative to maximum drawdown	—	3.01	—
Martin ratio: Return relative to average drawdown	—	13.54	—

Drawdowns

DEF vs. SPY - Drawdown Comparison

The maximum DEF drawdown since its inception was -11.11%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for DEF and SPY.

Drawdown Indicators

	DEF	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-11.11%	-55.19%	+44.08%
Max Drawdown (1Y) Largest decline over 1 year	—	-8.88%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-18.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-11.11%	-1.75%	-9.36%
Average Drawdown Average peak-to-trough decline	-9.26%	-9.04%	-0.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.97%	—

Volatility

Volatility by Period

	DEF	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.64%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.75%	—
Volatility (1Y) Calculated over the trailing 1-year period	66.96%	12.43%	+54.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.96%	17.14%	+49.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.96%	17.99%	+48.97%

DEF vs. SPY - Expense Ratio Comparison

DEF has a 0.53% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

DEF vs. SPY - Dividend Comparison

DEF has not paid dividends to shareholders, while SPY's dividend yield for the trailing twelve months is around 1.01%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DEF Invesco Defensive Equity ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both DEF and SPY in my portfolio?

DEF and SPY have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, DEF or SPY?

On fees, SPY is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, DEF or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.53% for DEF.

Which ETF pays a higher dividend yield, DEF or SPY?

SPY has the higher dividend yield at 1.01%, compared with 0.00% for DEF.

What is the main difference between DEF and SPY?

DEF is categorized as Large Cap Growth Equities, while SPY is S&P 500. DEF tracks Invesco Defensive Equity Index, while SPY tracks S&P 500 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.53% for DEF and 0.09% for SPY.