SDS vs. SPY

Last updated Aug 2, 2026

SDS (ProShares UltraShort S&P500) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SDS is a Leveraged Equities fund tracking the S&P 500 Index (-200%), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SDS returned -27.05%/yr vs 15.07%/yr for SPY. Their -1.00 correlation means they have often moved in opposite directions in the past. SDS charges 0.91%/yr vs 0.09%/yr for SPY.

Performance

SDS vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort S&P500 (SDS) 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, SDS achieves a -15.25% return, which is significantly lower than SPY's 10.13% return. Over the past 10 years, SDS has underperformed SPY with an annualized return of -27.05%, while SPY has yielded a comparatively higher 15.07% annualized return.

SDS

• 1D: -1.30%
• 1M: -0.07%
• 6M: -13.26%
• YTD: -15.25%
• 1Y: -28.08%
• 3Y*: -25.42%
• 5Y*: -20.30%
• 10Y*: -27.05%
• ALL TIME*: -24.93%

SPY

• 1D: 0.72%
• 1M: 0.30%
• 6M: 8.53%
• YTD: 10.13%
• 1Y: 21.49%
• 3Y*: 19.32%
• 5Y*: 12.76%
• 10Y*: 15.07%
• ALL TIME*: 10.79%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SDS ProShares UltraShort S&P500	$155.74M	$150.04M	$195.27M
SPY State Street SPDR S&P 500 ETF	$37.27B	$35.99B	$39.23B

SDS vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDS ProShares UltraShort S&P500	-15.25%	-26.79%	-29.45%	-31.53%	30.69%	-43.02%	-49.91%	-41.17%	6.04%	-32.02%
SPY State Street SPDR S&P 500 ETF	10.13%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between SDS and SPY is -1.00, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-1.00
Correlation (3Y) Balances recent behavior with more history.	-1.00
Correlation (5Y) Shows whether the relationship held over a longer period.	-1.00
Correlation (10Y) Provides a long-term view across more market conditions.	-1.00
Correlation (All Time) Calculated using the full available price history since Jul 13, 2006	-1.00

The correlation between SDS and SPY has been stable across timeframes, ranging from -1.00 to -1.00 - a consistent structural relationship.

SDS vs. SPY - Sectors Allocation Comparison

Sectors	SDS	SPY
Financial Services	82.5%	12.5%
Basic Materials	-	1.9%
Communication Services	-	9.7%
Consumer Cyclical	-	8.9%
Consumer Defensive	-	4.8%
Energy	-	3.4%
Healthcare	-	9.4%
Industrials	-	7.6%
Real Estate	-	2.0%
Technology	-	36.9%
Utilities	-	2.6%

Return for Risk

SDS vs. SPY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SDS

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

SPY

SPY Risk / Return Rank: 67
SPY Sharpe Ratio Rank: 67
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 64
SPY Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SDS vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort S&P500 (SDS) 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.

	SDS	SPY	Difference
Sharpe ratio: Return per unit of total volatility	-1.01	1.52	-2.53
Sortino ratio: Return per unit of downside risk	-1.45	2.11	-3.56
Omega ratio: Gain probability vs. loss probability	0.84	1.27	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.84	2.20	-3.05
Martin ratio: Return relative to average drawdown	-1.42	9.40	-10.82

SDS vs. SPY - Sharpe Ratio Comparison

The current SDS Sharpe Ratio is -1.01, which is lower than the SPY Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of SDS 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.

Drawdowns

SDS vs. SPY - Drawdown Comparison

The maximum SDS drawdown since its inception was -99.85%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SDS and SPY.

Drawdown Indicators

	SDS	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-99.85%	-55.19%	-44.66%
Max Drawdown (1Y) Largest decline over 1 year	-30.56%	-8.88%	-21.68%
Max Drawdown (3Y) Largest decline over 3 years	-68.14%	-18.76%	-49.38%
Max Drawdown (5Y) Largest decline over 5 years	-75.54%	-24.50%	-51.04%
Max Drawdown (10Y) Largest decline over 10 years	-96.08%	-33.72%	-62.36%
Current Drawdown Current decline from peak	-99.84%	-1.40%	-98.44%
Average Drawdown Average peak-to-trough decline	-82.85%	-9.01%	-73.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.14%	2.08%	+16.06%

Volatility

SDS vs. SPY - Volatility Comparison

ProShares UltraShort S&P500 (SDS) has a higher volatility of 7.16% compared to State Street SPDR S&P 500 ETF (SPY) at 3.58%. This indicates that SDS'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

	SDS	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.16%	3.58%	+3.58%
Volatility (6M) Calculated over the trailing 6-month period	20.17%	10.14%	+10.03%
Volatility (1Y) Calculated over the trailing 1-year period	25.61%	12.89%	+12.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.87%	17.18%	+16.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.84%	17.95%	+17.89%

SDS vs. SPY - Expense Ratio Comparison

SDS has a 0.91% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SDS vs. SPY - Dividend Comparison

SDS's dividend yield for the trailing twelve months is around 5.30%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SDS ProShares UltraShort S&P500	5.30%	5.88%	7.89%	5.77%	0.35%	0.00%	0.92%	1.84%	1.28%	0.09%	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 SDS and SPY in my portfolio?

SDS and SPY have a correlation of -1.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDS or SPY?

SDS has higher volatility (7.16%) compared to SPY (3.58%). In terms of maximum drawdown, SDS dropped -99.85% vs SPY's -55.19%.

Which ETF is better, SDS or SPY?

On 10-year performance, SPY leads with 15.07% vs -27.05% for SDS. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 3.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDS or SPY?

Over the 10-year period, SPY has performed better with a 15.07% return vs -27.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDS or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.91% for SDS.

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

SDS has the higher dividend yield at 5.30%, compared with 1.01% for SPY.

What is the main difference between SDS and SPY?

SDS is categorized as Leveraged Equities, while SPY is S&P 500. SDS tracks S&P 500 Index (-200%), while SPY tracks S&P 500 Index. They also come from different issuers: ProShares and State Street. Their fees differ too: 0.91% for SDS and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.52 vs -1.01), 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.