SPY vs. SPYT

Last updated Jun 12, 2026

SPY (State Street SPDR S&P 500 ETF) and SPYT (Defiance S&P 500 Income Target ETF) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while SPYT is a Derivative Income fund actively managed by Defiance. SPY is passively managed, while SPYT is actively managed. Over the past year, SPY returned 24.09% vs 19.83% for SPYT. With a 0.95 correlation, they move nearly in lockstep. SPY charges 0.09%/yr vs 0.87%/yr for SPYT.

Performance

SPY vs. SPYT - Performance Comparison

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

Returns By Period

In the year-to-date period, SPY achieves a 8.48% return, which is significantly higher than SPYT's 7.46% return.

SPY

• 1D: 1.70%
• 1M: -0.06%
• YTD: 8.48%
• 6M: 7.66%
• 1Y: 24.09%
• 3Y*: 20.90%
• 5Y*: 13.23%
• 10Y*: 15.34%

SPYT

• 1D: 1.71%
• 1M: -0.50%
• YTD: 7.46%
• 6M: 6.85%
• 1Y: 19.83%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SPY vs. SPYT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SPY State Street SPDR S&P 500 ETF	8.48%	17.72%	16.45%
SPYT Defiance S&P 500 Income Target ETF	7.46%	12.41%	13.30%

Correlation

The correlation between SPY and SPYT is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (All Time) Calculated using the full available price history since Mar 7, 2024	0.95

The correlation between SPY and SPYT has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

SPY vs. SPYT - Sectors Allocation Comparison

Sectors	SPY	SPYT
Technology	35.9%	36.2%
Financial Services	11.8%	11.9%
Communication Services	11.3%	10.9%
Consumer Cyclical	10.3%	10.1%
Healthcare	8.4%	8.4%
Industrials	7.8%	8.1%
Consumer Defensive	4.8%	4.9%
Energy	3.6%	3.5%
Utilities	2.4%	2.3%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

SPY vs. SPYT — Risk / Return Rank

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

SPY

SPY Risk / Return Rank: 73
SPY Sharpe Ratio Rank: 74
SPY Sortino Ratio Rank: 72
SPY Omega Ratio Rank: 73
SPY Calmar Ratio Rank: 66
SPY Martin Ratio Rank: 78

SPYT

SPYT Risk / Return Rank: 65
SPYT Sharpe Ratio Rank: 64
SPYT Sortino Ratio Rank: 61
SPYT Omega Ratio Rank: 69
SPYT Calmar Ratio Rank: 60
SPYT Martin Ratio Rank: 72

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.

SPY vs. SPYT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) and Defiance S&P 500 Income Target ETF (SPYT). 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.

	SPY	SPYT	Difference
Sharpe ratio: Return per unit of total volatility	1.97	1.75	+0.22
Sortino ratio: Return per unit of downside risk	2.67	2.40	+0.27
Omega ratio: Gain probability vs. loss probability	1.36	1.34	+0.01
Calmar ratio: Return relative to maximum drawdown	2.72	2.49	+0.23
Martin ratio: Return relative to average drawdown	12.32	11.21	+1.11

SPY vs. SPYT - Sharpe Ratio Comparison

The current SPY Sharpe Ratio is 1.97, which is comparable to the SPYT Sharpe Ratio of 1.75. The chart below compares the historical Sharpe Ratios of SPY and SPYT, 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

SPY vs. SPYT - Drawdown Comparison

The maximum SPY drawdown since its inception was -55.19%, which is greater than SPYT's maximum drawdown of -18.25%. Use the drawdown chart below to compare losses from any high point for SPY and SPYT.

Drawdown Indicators

	SPY	SPYT	Difference
Max Drawdown Largest peak-to-trough decline	-55.19%	-18.25%	-36.94%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-8.00%	-0.88%
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	-2.87%	-2.70%	-0.17%
Average Drawdown Average peak-to-trough decline	-9.04%	-2.00%	-7.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	1.77%	+0.19%

Volatility

SPY vs. SPYT - Volatility Comparison

State Street SPDR S&P 500 ETF (SPY) and Defiance S&P 500 Income Target ETF (SPYT) have volatilities of 4.34% and 4.20%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPY	SPYT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.34%	4.20%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	9.59%	9.02%	+0.57%
Volatility (1Y) Calculated over the trailing 1-year period	12.29%	11.38%	+0.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.12%	14.89%	+2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.97%	14.89%	+3.08%

SPY vs. SPYT - Expense Ratio Comparison

SPY has a 0.09% expense ratio, which is lower than SPYT's 0.87% expense ratio.

Dividends

SPY vs. SPYT - Dividend Comparison

SPY's dividend yield for the trailing twelve months is around 1.00%, less than SPYT's 21.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
SPYT Defiance S&P 500 Income Target ETF	21.16%	21.40%	17.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SPY and SPYT in my portfolio?

With a correlation of 0.97, SPY and SPYT move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SPY or SPYT?

SPY has higher volatility (4.34%) compared to SPYT (4.20%). In terms of maximum drawdown, SPY dropped -55.19% vs SPYT's -18.25%.

Which ETF is better, SPY or SPYT?

On 1-year performance, SPY leads with 24.09% vs 19.83% for SPYT. On fees, SPY is cheaper at 0.09% per year. On volatility, SPYT has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPY or SPYT?

Over the 1-year period, SPY has performed better with a 24.09% return vs 19.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPY or SPYT?

SPY is cheaper with a 0.09% expense ratio, compared with 0.87% for SPYT.

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

SPYT has the higher dividend yield at 21.16%, compared with 1.00% for SPY.

What is the main difference between SPY and SPYT?

SPY is categorized as S&P 500, while SPYT is Derivative Income. They also come from different issuers: State Street and Defiance. Their fees differ too: 0.09% for SPY and 0.87% for SPYT.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.97 vs 1.75), 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.