UAE vs. SPY

Last updated Jun 24, 2026

UAE (iShares MSCI UAE ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - UAE is a Emerging Markets Equities fund tracking the MSCI All UAE Capped Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, UAE returned 6.26%/yr vs 15.53%/yr for SPY. At a 0.37 correlation, their price movements are largely independent. UAE charges 0.59%/yr vs 0.09%/yr for SPY.

Performance

UAE vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI UAE ETF (UAE) 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, UAE achieves a 6.53% return, which is significantly lower than SPY's 8.15% return. Over the past 10 years, UAE has underperformed SPY with an annualized return of 6.26%, while SPY has yielded a comparatively higher 15.53% annualized return.

UAE

• 1D: -1.50%
• 1M: 7.68%
• YTD: 6.53%
• 6M: 4.13%
• 1Y: 16.47%
• 3Y*: 15.08%
• 5Y*: 10.81%
• 10Y*: 6.26%

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

UAE vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UAE iShares MSCI UAE ETF	6.53%	21.35%	15.25%	2.91%	-5.36%	44.16%	-7.23%	1.59%	-14.42%	4.99%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between UAE and SPY is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since May 1, 2014	0.37

The correlation between UAE and SPY shifts across timeframes, from 0.36 (5 years) to 0.52 (1 year), reflecting how their relationship changes across market environments.

UAE vs. SPY - Sectors Allocation Comparison

Sectors	UAE	SPY
Financial Services	38.2%	11.1%
Real Estate	21.4%	1.8%
Industrials	10.8%	7.8%
Communication Services	10.2%	10.6%
Energy	7.9%	3.1%
Consumer Cyclical	4.9%	9.9%
Utilities	4.1%	2.1%
Consumer Defensive	1.6%	4.5%
Technology	0.9%	39.0%
Basic Materials	0.1%	1.7%
Healthcare	-	8.3%

Return for Risk

UAE vs. SPY — Risk / Return Rank

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

UAE

UAE Risk / Return Rank: 20
UAE Sharpe Ratio Rank: 22
UAE Sortino Ratio Rank: 22
UAE Omega Ratio Rank: 22
UAE Calmar Ratio Rank: 18
UAE Martin Ratio Rank: 18

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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.

UAE vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI UAE ETF (UAE) 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.

	UAE	SPY	Difference
Sharpe ratio: Return per unit of total volatility	0.72	1.90	-1.18
Sortino ratio: Return per unit of downside risk	1.19	2.58	-1.39
Omega ratio: Gain probability vs. loss probability	1.15	1.34	-0.20
Calmar ratio: Return relative to maximum drawdown	0.77	2.67	-1.90
Martin ratio: Return relative to average drawdown	1.87	11.92	-10.05

UAE vs. SPY - Sharpe Ratio Comparison

The current UAE Sharpe Ratio is 0.72, which is lower than the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of UAE 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

UAE vs. SPY - Drawdown Comparison

The maximum UAE drawdown since its inception was -60.49%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for UAE and SPY.

Drawdown Indicators

	UAE	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-60.49%	-55.19%	-5.30%
Max Drawdown (1Y) Largest decline over 1 year	-21.50%	-8.88%	-12.62%
Max Drawdown (3Y) Largest decline over 3 years	-21.50%	-18.76%	-2.74%
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	-24.50%	-2.97%
Max Drawdown (10Y) Largest decline over 10 years	-49.71%	-33.72%	-15.99%
Current Drawdown Current decline from peak	-8.37%	-3.17%	-5.20%
Average Drawdown Average peak-to-trough decline	-23.85%	-9.04%	-14.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.81%	1.98%	+6.83%

Volatility

UAE vs. SPY - Volatility Comparison

iShares MSCI UAE ETF (UAE) has a higher volatility of 9.16% compared to State Street SPDR S&P 500 ETF (SPY) at 4.87%. This indicates that UAE'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

	UAE	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.16%	4.87%	+4.29%
Volatility (6M) Calculated over the trailing 6-month period	20.42%	9.85%	+10.57%
Volatility (1Y) Calculated over the trailing 1-year period	22.94%	12.50%	+10.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	17.15%	+1.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.61%	17.95%	+1.66%

UAE vs. SPY - Expense Ratio Comparison

UAE has a 0.59% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

UAE vs. SPY - Dividend Comparison

UAE's dividend yield for the trailing twelve months is around 4.33%, more than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
UAE iShares MSCI UAE ETF	4.33%	4.10%	3.32%	3.25%	2.67%	4.88%	4.75%	3.54%	5.56%	3.38%	4.74%	3.77%

Frequently Asked Questions

Can I hold both UAE and SPY in my portfolio?

UAE and SPY have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UAE or SPY?

UAE has higher volatility (9.16%) compared to SPY (4.87%). In terms of maximum drawdown, UAE dropped -60.49% vs SPY's -55.19%.

Which ETF is better, UAE or SPY?

On 10-year performance, SPY leads with 15.53% vs 6.26% for UAE. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UAE or SPY?

Over the 10-year period, SPY has performed better with a 15.53% return vs 6.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UAE or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.59% for UAE.

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

UAE has the higher dividend yield at 4.33%, compared with 1.03% for SPY.

What is the main difference between UAE and SPY?

UAE is categorized as Emerging Markets Equities, while SPY is S&P 500. UAE tracks MSCI All UAE Capped Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.59% for UAE and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 0.72), 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.