UTWO vs. SPY

Last updated Jun 24, 2026

UTWO (US Treasury 2 Year Note ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - UTWO is a Government Bonds fund tracking the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 3 years, UTWO returned 3.85%/yr vs 20.68%/yr for SPY. At a 0.07 correlation, their price movements are largely independent. UTWO charges 0.15%/yr vs 0.09%/yr for SPY.

Performance

UTWO vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 2 Year Note ETF (UTWO) 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, UTWO achieves a 0.33% return, which is significantly lower than SPY's 8.15% return.

UTWO

• 1D: 0.09%
• 1M: 0.15%
• YTD: 0.33%
• 6M: 0.51%
• 1Y: 2.73%
• 3Y*: 3.85%
• 5Y*: —
• 10Y*: —

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)

UTWO vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
UTWO US Treasury 2 Year Note ETF	0.33%	4.79%	3.71%	3.45%	-0.84%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-6.59%

Correlation

The correlation between UTWO and SPY is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.06
Correlation (All Time) Calculated using the full available price history since Aug 9, 2022	0.07

The correlation between UTWO and SPY shifts across timeframes, from 0.06 (3 years) to 0.17 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

UTWO vs. SPY — Risk / Return Rank

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

UTWO

UTWO Risk / Return Rank: 69
UTWO Sharpe Ratio Rank: 66
UTWO Sortino Ratio Rank: 77
UTWO Omega Ratio Rank: 73
UTWO Calmar Ratio Rank: 65
UTWO Martin Ratio Rank: 63

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.

UTWO vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) 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.

	UTWO	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.00	1.90	+0.10
Sortino ratio: Return per unit of downside risk	3.16	2.58	+0.58
Omega ratio: Gain probability vs. loss probability	1.40	1.34	+0.05
Calmar ratio: Return relative to maximum drawdown	3.05	2.67	+0.38
Martin ratio: Return relative to average drawdown	10.64	11.92	-1.28

UTWO vs. SPY - Sharpe Ratio Comparison

The current UTWO Sharpe Ratio is 2.00, which is comparable to the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of UTWO 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

UTWO vs. SPY - Drawdown Comparison

The maximum UTWO drawdown since its inception was -2.04%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for UTWO and SPY.

Drawdown Indicators

	UTWO	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-2.04%	-55.19%	+53.15%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-8.88%	+7.98%
Max Drawdown (3Y) Largest decline over 3 years	-1.08%	-18.76%	+17.68%
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	-0.38%	-3.17%	+2.79%
Average Drawdown Average peak-to-trough decline	-0.48%	-9.04%	+8.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.26%	1.98%	-1.72%

Volatility

UTWO vs. SPY - Volatility Comparison

The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.48%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.87%. This indicates that UTWO 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

	UTWO	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.48%	4.87%	-4.39%
Volatility (6M) Calculated over the trailing 6-month period	1.00%	9.85%	-8.85%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	12.50%	-11.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.07%	17.15%	-15.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.07%	17.95%	-15.88%

UTWO vs. SPY - Expense Ratio Comparison

UTWO has a 0.15% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

UTWO vs. SPY - Dividend Comparison

UTWO's dividend yield for the trailing twelve months is around 3.50%, 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%
UTWO US Treasury 2 Year Note ETF	3.50%	3.63%	4.22%	4.39%	1.22%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UTWO and SPY in my portfolio?

UTWO and SPY have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UTWO or SPY?

SPY has higher volatility (4.87%) compared to UTWO (0.48%). In terms of maximum drawdown, UTWO dropped -2.04% vs SPY's -55.19%.

Which ETF is better, UTWO or SPY?

On 3-year performance, SPY leads with 20.68% vs 3.85% for UTWO. On fees, SPY is cheaper at 0.09% per year. On volatility, UTWO has been the lower-risk option at 0.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTWO or SPY?

Over the 3-year period, SPY has performed better with a 20.68% return vs 3.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTWO or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for UTWO.

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

UTWO has the higher dividend yield at 3.50%, compared with 1.03% for SPY.

What is the main difference between UTWO and SPY?

UTWO is categorized as Government Bonds, while SPY is S&P 500. UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while SPY tracks S&P 500 Index. They also come from different issuers: US Benchmark Series and State Street. Their fees differ too: 0.15% for UTWO and 0.09% for SPY.

Which has better risk-adjusted returns?

UTWO currently has the higher Sharpe Ratio (2.00 vs 1.90), 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.