SQY vs. SPY

Last updated Jun 3, 2026

SQY (YieldMax SQ Option Income Strategy ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SQY is a Derivative Income fund actively managed by YieldMax, while SPY is a S&P 500 fund tracking the S&P 500 Index. SQY is actively managed, while SPY is passively managed. Over the past year, SQY returned 7.17% vs 29.62% for SPY. A 0.56 correlation means they provide meaningful diversification when combined. SQY charges 1.01%/yr vs 0.09%/yr for SPY.

Performance

SQY vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax SQ Option Income Strategy ETF (SQY) 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, SQY achieves a 4.45% return, which is significantly lower than SPY's 11.69% return.

SQY

• 1D: -1.63%
• 1M: 0.60%
• YTD: 4.45%
• 6M: 14.28%
• 1Y: 7.17%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

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

SQY vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SQY YieldMax SQ Option Income Strategy ETF	4.45%	-29.43%	21.72%	44.45%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	9.38%

Correlation

The correlation between SQY and SPY is 0.53, 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	0.53
Correlation (All Time) Calculated using the full available price history since Oct 12, 2023	0.56

The correlation between SQY and SPY has been stable across timeframes, ranging from 0.53 to 0.56 - a consistent structural relationship.

Return for Risk

SQY vs. SPY — Risk / Return Rank

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

SQY

SQY Risk / Return Rank: 12
SQY Sharpe Ratio Rank: 11
SQY Sortino Ratio Rank: 13
SQY Omega Ratio Rank: 13
SQY Calmar Ratio Rank: 10
SQY Martin Ratio Rank: 10

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

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.

SQY vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax SQ Option Income Strategy ETF (SQY) 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.

	SQY	SPY	Difference
Sharpe ratio Return per unit of total volatility	0.19	2.52	-2.33
Sortino ratio Return per unit of downside risk	0.51	3.42	-2.90
Omega ratio Gain probability vs. loss probability	1.07	1.46	-0.39
Calmar ratio Return relative to maximum drawdown	0.19	3.42	-3.23
Martin ratio Return relative to average drawdown	0.41	15.93	-15.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SQY vs. SPY - Sharpe Ratio Comparison

The current SQY Sharpe Ratio is 0.19, which is lower than the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of SQY 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.

Sharpe Ratios by Period

	SQY	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.19	2.52	-2.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.84	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.59	-0.34

Drawdowns

SQY vs. SPY - Drawdown Comparison

The maximum SQY drawdown since its inception was -52.30%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SQY and SPY.

Drawdown Indicators

	SQY	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-52.30%	-55.19%	+2.89%
Max Drawdown (1Y) Largest decline over 1 year	-37.72%	-8.88%	-28.84%
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	-34.42%	0.00%	-34.42%
Average Drawdown Average peak-to-trough decline	-21.80%	-9.05%	-12.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.14%	1.91%	+15.23%

Volatility

SQY vs. SPY - Volatility Comparison

YieldMax SQ Option Income Strategy ETF (SQY) has a higher volatility of 9.38% compared to State Street SPDR S&P 500 ETF (SPY) at 2.75%. This indicates that SQY'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

	SQY	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.38%	2.75%	+6.63%
Volatility (6M) Calculated over the trailing 6-month period	30.72%	8.89%	+21.83%
Volatility (1Y) Calculated over the trailing 1-year period	38.47%	11.81%	+26.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	42.11%	17.05%	+25.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	42.11%	17.94%	+24.17%

SQY vs. SPY - Expense Ratio Comparison

SQY has a 1.01% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SQY vs. SPY - Dividend Comparison

SQY's dividend yield for the trailing twelve months is around 103.71%, more than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.97%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
SQY YieldMax SQ Option Income Strategy ETF	103.71%	95.35%	62.54%	9.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SQY and SPY in my portfolio?

SQY and SPY have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SQY or SPY?

SQY has higher volatility (9.38%) compared to SPY (2.75%). In terms of maximum drawdown, SQY dropped -52.30% vs SPY's -55.19%.

Which ETF is better, SQY or SPY?

On 1-year performance, SPY leads with 29.62% vs 7.17% for SQY. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SQY or SPY?

Over the 1-year period, SPY has performed better with a 29.62% return vs 7.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SQY or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 1.01% for SQY.

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

SQY has the higher dividend yield at 103.71%, compared with 0.97% for SPY.

What is the main difference between SQY and SPY?

SQY is categorized as Derivative Income, while SPY is S&P 500. They also come from different issuers: YieldMax and State Street. Their fees differ too: 1.01% for SQY and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 0.19), 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.