PYPY vs. SPY

Last updated Jun 4, 2026

PYPY (Yieldmax PYPL Option Income Strategy ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - PYPY is a Derivative Income fund actively managed by YieldMax, while SPY is a S&P 500 fund tracking the S&P 500 Index. PYPY is actively managed, while SPY is passively managed. Over the past year, PYPY returned -39.20% vs 27.98% for SPY. At a 0.48 correlation, their price movements are largely independent. PYPY charges 1.01%/yr vs 0.09%/yr for SPY.

Performance

PYPY vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Yieldmax PYPL Option Income Strategy ETF (PYPY) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PYPY achieves a -23.28% return, which is significantly lower than SPY's 10.91% return.

PYPY

• 1D: -3.78%
• 1M: -12.23%
• YTD: -23.28%
• 6M: -25.27%
• 1Y: -39.20%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

PYPY vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PYPY Yieldmax PYPL Option Income Strategy ETF	-23.28%	-30.17%	43.88%	6.09%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	12.06%

Correlation

The correlation between PYPY and SPY is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Sep 27, 2023	0.48

PYPY vs. SPY - Sectors Allocation Comparison

Sectors	PYPY	SPY
Financial Services	100.0%	11.8%
Basic Materials	-	1.8%
Communication Services	-	11.3%
Consumer Cyclical	-	10.3%
Consumer Defensive	-	4.8%
Energy	-	3.6%
Healthcare	-	8.4%
Industrials	-	7.8%
Real Estate	-	1.9%
Technology	-	35.9%
Utilities	-	2.4%

Return for Risk

PYPY vs. SPY — Risk / Return Rank

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

PYPY

PYPY Risk / Return Rank: 1
PYPY Sharpe Ratio Rank: 1
PYPY Sortino Ratio Rank: 1
PYPY Omega Ratio Rank: 1
PYPY Calmar Ratio Rank: 2
PYPY Martin Ratio Rank: 1

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.

PYPY vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Yieldmax PYPL Option Income Strategy ETF (PYPY) 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.

	PYPY	SPY	Difference
Sharpe ratio: Return per unit of total volatility	-1.15	2.38	-3.53
Sortino ratio: Return per unit of downside risk	-1.50	3.24	-4.74
Omega ratio: Gain probability vs. loss probability	0.78	1.43	-0.66
Calmar ratio: Return relative to maximum drawdown	-0.83	3.16	-4.00
Martin ratio: Return relative to average drawdown	-1.48	14.72	-16.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PYPY vs. SPY - Sharpe Ratio Comparison

The current PYPY Sharpe Ratio is -1.15, which is lower than the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of PYPY 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

	PYPY	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.15	2.38	-3.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.82	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.23	0.59	-0.82

Drawdowns

PYPY vs. SPY - Drawdown Comparison

The maximum PYPY drawdown since its inception was -53.64%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for PYPY and SPY.

Drawdown Indicators

	PYPY	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-53.64%	-55.19%	+1.55%
Max Drawdown (1Y) Largest decline over 1 year	-47.14%	-8.88%	-38.26%
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	-49.18%	-0.70%	-48.48%
Average Drawdown Average peak-to-trough decline	-16.16%	-9.05%	-7.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	26.44%	1.91%	+24.53%

Volatility

PYPY vs. SPY - Volatility Comparison

Yieldmax PYPL Option Income Strategy ETF (PYPY) has a higher volatility of 7.83% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that PYPY'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

	PYPY	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.83%	2.84%	+4.99%
Volatility (6M) Calculated over the trailing 6-month period	28.63%	8.90%	+19.73%
Volatility (1Y) Calculated over the trailing 1-year period	34.15%	11.83%	+22.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.10%	17.05%	+14.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.10%	17.94%	+13.16%

PYPY vs. SPY - Expense Ratio Comparison

PYPY has a 1.01% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

PYPY vs. SPY - Dividend Comparison

PYPY's dividend yield for the trailing twelve months is around 69.43%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PYPY Yieldmax PYPL Option Income Strategy ETF	69.43%	64.68%	48.65%	5.70%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	0.98%	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 PYPY and SPY in my portfolio?

PYPY and SPY have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PYPY or SPY?

PYPY has higher volatility (7.83%) compared to SPY (2.84%). In terms of maximum drawdown, PYPY dropped -53.64% vs SPY's -55.19%.

Which ETF is better, PYPY or SPY?

On 1-year performance, SPY leads with 27.98% vs -39.20% for PYPY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PYPY or SPY?

Over the 1-year period, SPY has performed better with a 27.98% return vs -39.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PYPY or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 1.01% for PYPY.

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

PYPY has the higher dividend yield at 69.43%, compared with 0.98% for SPY.

What is the main difference between PYPY and SPY?

PYPY is categorized as Derivative Income, while SPY is S&P 500. They also come from different issuers: YieldMax and State Street. Their fees differ too: 1.01% for PYPY and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs -1.15), 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.