SPSM vs. BDFIX

Last updated Jun 4, 2026

SPSM (SPDR Portfolio S&P 600 Small Cap ETF) and BDFIX (Baron Discovery Fund) are both funds - SPSM is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index, while BDFIX is a Small Cap Growth Equities fund managed by Baron Capital Group, Inc.. Over the past 10 years, SPSM returned 10.77%/yr vs 13.91%/yr for BDFIX. Their correlation of 0.81 suggests significant overlap in exposure. SPSM charges 0.05%/yr vs 1.05%/yr for BDFIX.

Performance

SPSM vs. BDFIX - Performance Comparison

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

Returns By Period

In the year-to-date period, SPSM achieves a 15.28% return, which is significantly higher than BDFIX's 2.05% return. Over the past 10 years, SPSM has underperformed BDFIX with an annualized return of 10.77%, while BDFIX has yielded a comparatively higher 13.91% annualized return.

SPSM

• 1D: -0.92%
• 1M: 1.62%
• YTD: 15.28%
• 6M: 14.19%
• 1Y: 31.50%
• 3Y*: 14.42%
• 5Y*: 5.71%
• 10Y*: 10.77%

BDFIX

• 1D: -0.81%
• 1M: 6.44%
• YTD: 2.05%
• 6M: 0.85%
• 1Y: 9.86%
• 3Y*: 13.70%
• 5Y*: 0.42%
• 10Y*: 13.91%

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

SPSM vs. BDFIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPSM SPDR Portfolio S&P 600 Small Cap ETF	15.28%	6.11%	8.55%	16.11%	-16.12%	26.67%	11.69%	25.85%	-11.17%	15.44%
BDFIX Baron Discovery Fund	2.05%	10.96%	16.28%	22.58%	-35.12%	4.84%	66.15%	26.85%	0.66%	35.84%

Correlation

The correlation between SPSM and BDFIX is 0.76, 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	0.76
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 4, 2013	0.81

The correlation between SPSM and BDFIX has been stable across timeframes, ranging from 0.76 to 0.82 - a consistent structural relationship.

Return for Risk

SPSM vs. BDFIX — Risk / Return Rank

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

SPSM

SPSM Risk / Return Rank: 58
SPSM Sharpe Ratio Rank: 52
SPSM Sortino Ratio Rank: 54
SPSM Omega Ratio Rank: 49
SPSM Calmar Ratio Rank: 72
SPSM Martin Ratio Rank: 65

BDFIX

BDFIX Risk / Return Rank: 7
BDFIX Sharpe Ratio Rank: 7
BDFIX Sortino Ratio Rank: 8
BDFIX Omega Ratio Rank: 7
BDFIX Calmar Ratio Rank: 6
BDFIX Martin Ratio Rank: 7

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.

SPSM vs. BDFIX - Risk-Adjusted Trends Comparison

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

	SPSM	BDFIX	Difference
Sharpe ratio Return per unit of total volatility	1.82	0.59	+1.23
Sortino ratio Return per unit of downside risk	2.64	0.97	+1.66
Omega ratio Gain probability vs. loss probability	1.32	1.11	+0.20
Calmar ratio Return relative to maximum drawdown	3.63	0.63	+3.00
Martin ratio Return relative to average drawdown	12.14	1.90	+10.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPSM vs. BDFIX - Sharpe Ratio Comparison

The current SPSM Sharpe Ratio is 1.82, which is higher than the BDFIX Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of SPSM and BDFIX, 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

	SPSM	BDFIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	0.59	+1.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.02	+0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.55	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.52	-0.07

Drawdowns

SPSM vs. BDFIX - Drawdown Comparison

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

Drawdown Indicators

	SPSM	BDFIX	Difference
Max Drawdown Largest peak-to-trough decline	-42.89%	-46.39%	+3.50%
Max Drawdown (1Y) Largest decline over 1 year	-8.72%	-17.94%	+9.22%
Max Drawdown (3Y) Largest decline over 3 years	-27.94%	-24.26%	-3.68%
Max Drawdown (5Y) Largest decline over 5 years	-27.94%	-45.38%	+17.44%
Max Drawdown (10Y) Largest decline over 10 years	-42.89%	-46.39%	+3.50%
Current Drawdown Current decline from peak	-0.97%	-7.21%	+6.24%
Average Drawdown Average peak-to-trough decline	-7.93%	-14.62%	+6.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.60%	5.91%	-3.31%

Volatility

SPSM vs. BDFIX - Volatility Comparison

The current volatility for SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is 4.44%, while Baron Discovery Fund (BDFIX) has a volatility of 4.90%. This indicates that SPSM experiences smaller price fluctuations and is considered to be less risky than BDFIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPSM	BDFIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	4.90%	-0.46%
Volatility (6M) Calculated over the trailing 6-month period	11.64%	14.28%	-2.64%
Volatility (1Y) Calculated over the trailing 1-year period	17.47%	19.19%	-1.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.43%	26.28%	-4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.99%	25.22%	-2.23%

SPSM vs. BDFIX - Expense Ratio Comparison

SPSM has a 0.05% expense ratio, which is lower than BDFIX's 1.05% expense ratio.

Dividends

SPSM vs. BDFIX - Dividend Comparison

SPSM's dividend yield for the trailing twelve months is around 1.43%, while BDFIX has not paid dividends to shareholders.

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 SPDR Portfolio S&P 600 Small Cap ETF	1.43%	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 SPSM and BDFIX in my portfolio?

SPSM and BDFIX have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPSM or BDFIX?

BDFIX has higher volatility (4.90%) compared to SPSM (4.44%). In terms of maximum drawdown, SPSM dropped -42.89% vs BDFIX's -46.39%.

Which has better risk-adjusted returns?

SPSM currently has the higher Sharpe Ratio (1.82 vs 0.59), 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.