SHLD vs. SPY

Last updated Jun 23, 2026

SHLD (Global X Defense Tech ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past year, SHLD returned 4.31% vs 26.65% for SPY. At a 0.45 correlation, their price movements are largely independent. SHLD charges 0.50%/yr vs 0.09%/yr for SPY.

Performance

SHLD vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Defense Tech ETF (SHLD) 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, SHLD achieves a -6.48% return, which is significantly lower than SPY's 9.74% return.

SHLD

• 1D: -2.74%
• 1M: -7.00%
• YTD: -6.48%
• 6M: -8.11%
• 1Y: 4.31%
• 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)

SHLD vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SHLD Global X Defense Tech ETF	-6.48%	74.16%	35.03%	12.89%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	7.38%

Correlation

The correlation between SHLD and SPY is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.45

SHLD vs. SPY - Sectors Allocation Comparison

Sectors	SHLD	SPY
Industrials	87.8%	7.8%
Technology	12.2%	39.0%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Financial Services	-	11.1%
Healthcare	-	8.3%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

SHLD vs. SPY — Risk / Return Rank

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

SHLD

SHLD Risk / Return Rank: 10
SHLD Sharpe Ratio Rank: 11
SHLD Sortino Ratio Rank: 11
SHLD Omega Ratio Rank: 10
SHLD Calmar Ratio Rank: 10
SHLD Martin Ratio Rank: 10

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.

SHLD vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Defense Tech ETF (SHLD) 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.

	SHLD	SPY	Difference
Sharpe ratio: Return per unit of total volatility	0.18	2.16	-1.98
Sortino ratio: Return per unit of downside risk	0.43	2.91	-2.48
Omega ratio: Gain probability vs. loss probability	1.05	1.39	-0.34
Calmar ratio: Return relative to maximum drawdown	0.19	3.01	-2.82
Martin ratio: Return relative to average drawdown	0.50	13.54	-13.03

SHLD vs. SPY - Sharpe Ratio Comparison

The current SHLD Sharpe Ratio is 0.18, which is lower than the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of SHLD 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

SHLD vs. SPY - Drawdown Comparison

The maximum SHLD drawdown since its inception was -22.34%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SHLD and SPY.

Drawdown Indicators

	SHLD	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-22.34%	-55.19%	+32.85%
Max Drawdown (1Y) Largest decline over 1 year	-22.34%	-8.88%	-13.46%
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	-22.34%	-1.75%	-20.59%
Average Drawdown Average peak-to-trough decline	-3.46%	-9.04%	+5.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.58%	1.97%	+6.61%

Volatility

SHLD vs. SPY - Volatility Comparison

Global X Defense Tech ETF (SHLD) has a higher volatility of 9.03% compared to State Street SPDR S&P 500 ETF (SPY) at 4.64%. This indicates that SHLD'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

	SHLD	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.03%	4.64%	+4.39%
Volatility (6M) Calculated over the trailing 6-month period	20.23%	9.75%	+10.48%
Volatility (1Y) Calculated over the trailing 1-year period	24.76%	12.43%	+12.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.35%	17.14%	+4.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.35%	17.99%	+3.36%

SHLD vs. SPY - Expense Ratio Comparison

SHLD has a 0.50% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SHLD vs. SPY - Dividend Comparison

SHLD's dividend yield for the trailing twelve months is around 0.59%, less than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.59%	0.55%	0.53%	0.26%	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 SHLD and SPY in my portfolio?

SHLD and SPY have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHLD or SPY?

SHLD has higher volatility (9.03%) compared to SPY (4.64%). In terms of maximum drawdown, SHLD dropped -22.34% vs SPY's -55.19%.

Which ETF is better, SHLD or SPY?

On 1-year performance, SPY leads with 26.65% vs 4.31% for SHLD. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHLD or SPY?

Over the 1-year period, SPY has performed better with a 26.65% return vs 4.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHLD or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.50% for SHLD.

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

SPY has the higher dividend yield at 1.01%, compared with 0.59% for SHLD.

What is the main difference between SHLD and SPY?

SHLD is categorized as Aerospace & Defense, while SPY is S&P 500. SHLD tracks Global X Defense Tech Index, while SPY tracks S&P 500 Index. They also come from different issuers: Global X and State Street. Their fees differ too: 0.50% for SHLD and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 0.18), 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.