BABO vs SPY
YieldMax BABA Option Income Strategy ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, BABO or SPY?
Option Writing against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BABO | SPY |
|---|---|---|
| Expense Ratio | 1.00% | 0.09%Best |
| AUM | $13M | $823.2B |
| Dividend Yield | 101.42% | 0.99% |
| Holdings | 26 | 1,515 |
| YTD Return | -26.21% | +13.53%Best |
| 1Y Return | -25.99% | +17.47%Best |
| 3Y Return (annualized) | - | +22.36% |
| 5Y Return (annualized) | - | +13.21% |
| Volatility (annualized) | 40.2% | 12.1%Best |
| Max Drawdown | -42.6% | -18.8%Best |
| $10,000 over 2.2 years | $11,384 | $14,932Best |
| Fund Family | YieldMax ETF | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Blend |
| Inception | Aug 7, 2024 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.2 years row, are measured over the window both funds cover: Aug 8, 2024 to Oct 14, 2026 (2.2 years).
BABO vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.2 years both funds cover.
BABO vs SPY Performance
YieldMax BABA Option Income Strategy ETF (BABO) is an ETF from YieldMax ETF and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year BABO returned -25.99% while SPY returned +17.47%. Year to date, BABO is down 26.21% versus a gain of 13.53% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BABO has been the more volatile fund, with annualized monthly volatility of 40.2% compared with 12.1% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -42.6% for BABO and -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.17. They move largely independently of each other.
Fees and Cost Over Time
BABO charges 1.00% per year while SPY charges 0.09%. On a $10,000 position that is $100 vs $9 annually, a gap of $91 per year that compounds over a long holding period. On income, BABO currently yields 101.42% against 0.99% for SPY.
Holdings Overlap
We hold position weights for 2 holdings in BABO and 504 in SPY, totalling 38.8% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in BABO and 504 in SPY, against full books of 26 and 1,515.
You are not choosing between two funds in isolation.
Whichever of BABO and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BABO or SPY?
BABO has an expense ratio of 1.00% while SPY charges 0.09%. SPY is the cheaper option, by $91 a year on a $10,000 investment.
Which performed better, BABO or SPY?
Over the past year BABO returned -25.99% vs +17.47% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +6.07% vs +19.99% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BABO or SPY?
BABO has been the more volatile fund at 40.2% annualized versus 12.1% for SPY. Worst drawdown: BABO -42.6% vs SPY -18.8%.
Should I hold both BABO and SPY?
BABO and SPY have a monthly-return correlation of 0.17, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BABO or SPY?
BABO yields 101.42% while SPY yields 0.99%, so BABO currently pays the higher dividend yield.
Is SPY better than BABO?
SPY has a lower expense ratio. SPY led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.