SPYT vs. SPY

Last updated Jun 23, 2026

SPYT (Defiance S&P 500 Income Target ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SPYT is a Derivative Income fund actively managed by Defiance, while SPY is a S&P 500 fund tracking the S&P 500 Index. SPYT is actively managed, while SPY is passively managed. Over the past year, SPYT returned 22.32% vs 26.65% for SPY. With a 0.95 correlation, they move nearly in lockstep. SPYT charges 0.87%/yr vs 0.09%/yr for SPY.

Performance

SPYT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance S&P 500 Income Target ETF (SPYT) 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, SPYT achieves a 8.64% return, which is significantly lower than SPY's 9.74% return.

SPYT

• 1D: -0.23%
• 1M: -0.31%
• YTD: 8.64%
• 6M: 8.33%
• 1Y: 22.32%
• 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)

SPYT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SPYT Defiance S&P 500 Income Target ETF	8.64%	12.41%	13.30%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	16.45%

Correlation

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

SPYT vs. SPY - Sectors Allocation Comparison

Sectors	SPYT	SPY
Technology	38.4%	39.0%
Financial Services	11.0%	11.1%
Communication Services	10.8%	10.6%
Consumer Cyclical	10.0%	9.9%
Healthcare	8.4%	8.3%
Industrials	7.9%	7.8%
Consumer Defensive	4.6%	4.5%
Energy	3.2%	3.1%
Utilities	2.1%	2.1%
Real Estate	1.8%	1.8%
Basic Materials	1.7%	1.7%

Return for Risk

SPYT vs. SPY — Risk / Return Rank

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

SPYT

SPYT Risk / Return Rank: 63
SPYT Sharpe Ratio Rank: 61
SPYT Sortino Ratio Rank: 59
SPYT Omega Ratio Rank: 67
SPYT Calmar Ratio Rank: 59
SPYT Martin Ratio Rank: 69

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.

SPYT vs. SPY - Risk-Adjusted Trends Comparison

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

	SPYT	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.96	2.16	-0.20
Sortino ratio: Return per unit of downside risk	2.68	2.91	-0.23
Omega ratio: Gain probability vs. loss probability	1.39	1.39	0.00
Calmar ratio: Return relative to maximum drawdown	2.80	3.01	-0.21
Martin ratio: Return relative to average drawdown	12.52	13.54	-1.02

SPYT vs. SPY - Sharpe Ratio Comparison

The current SPYT Sharpe Ratio is 1.96, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of SPYT 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

SPYT vs. SPY - Drawdown Comparison

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

Drawdown Indicators

	SPYT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-18.25%	-55.19%	+36.94%
Max Drawdown (1Y) Largest decline over 1 year	-8.00%	-8.88%	+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	-1.63%	-1.75%	+0.12%
Average Drawdown Average peak-to-trough decline	-2.00%	-9.04%	+7.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.97%	-0.18%

Volatility

SPYT vs. SPY - Volatility Comparison

The current volatility for Defiance S&P 500 Income Target ETF (SPYT) is 4.35%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that SPYT experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPYT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.35%	4.64%	-0.29%
Volatility (6M) Calculated over the trailing 6-month period	9.15%	9.75%	-0.60%
Volatility (1Y) Calculated over the trailing 1-year period	11.45%	12.43%	-0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.89%	17.14%	-2.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.89%	17.99%	-3.10%

SPYT vs. SPY - Expense Ratio Comparison

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

Dividends

SPYT vs. SPY - Dividend Comparison

SPYT's dividend yield for the trailing twelve months is around 20.93%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SPYT Defiance S&P 500 Income Target ETF	20.93%	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 SPYT and SPY in my portfolio?

With a correlation of 0.97, SPYT and SPY 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, SPYT or SPY?

SPY has higher volatility (4.64%) compared to SPYT (4.35%). In terms of maximum drawdown, SPYT dropped -18.25% vs SPY's -55.19%.

Which ETF is better, SPYT or SPY?

On 1-year performance, SPY leads with 26.65% vs 22.32% for SPYT. On fees, SPY is cheaper at 0.09% per year. On volatility, SPYT has been the lower-risk option at 4.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPYT or SPY?

Over the 1-year period, SPY has performed better with a 26.65% return vs 22.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPYT or SPY?

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

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

SPYT has the higher dividend yield at 20.93%, compared with 1.01% for SPY.

What is the main difference between SPYT and SPY?

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

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 1.96), 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.