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ETF Comparison

SPY vs SPYI: Which Is the Better Pick in 2026?

A head-to-head comparison of SPDR S&P 500 ETF Trust and NEOS S&P 500 High Income ETF covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.
  • SPYIInvestors who want to maximize current income — roughly 11.73%, generated by selling options premium.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSPYSPYI
Full nameSPDR S&P 500 ETF TrustNEOS S&P 500 High Income ETF
IssuerState StreetNEOS
Last Close$772.49 as of August 13, 2026$54.20 as of August 13, 2026
Distribution yield0.99%11.73%
Distribution Safety Score™ 10090
Expense ratio0.10%0.68%
AUM$812B$11.1B
Distribution frequencyQuarterlyMonthly
Underlying indexS&P 500 IndexS&P 500 Index
ObjectiveTrack the S&P 500 Index before expenses.Seeks to generate high monthly income in a tax efficient manner while targeting equity appreciation.
Asset classEquityEquity
Inception date01/22/199308/29/2022
Beta1.00.7
Last dividend$1.9035$0.5300
Ex-dividend date06/18/202607/22/2026

Bottom lineChoose SPY if you want simple, diversified core exposure in one low-cost fund. Choose SPYI if you want to maximize current income — roughly 11.73%, generated by selling options premium. There's no free lunch: SPYI's payout comes from selling options, which caps upside and can erode the share price over time, while SPY keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Capped upside and premium dependence. SPYI generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

State Street
ETFs180
Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs
NEOS
ETFs19
Total AUM$31.2B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

NEOS is known for developing specialized income-focused ETFs that employ strategies like covered calls, hedging, and enhanced yields across various asset classes. The firm manages 19 funds organized into nine distinct families, including offerings in equity high income, fixed income enhancement, digital assets, and alternative strategies, with popular tickers like SPYI (S&P 500 covered call), QQQI (Nasdaq-100 covered call), and QQQH (Nasdaq-100 hedged equity income). NEOS distinguishes itself in the ETF landscape through its emphasis on income generation and downside protection strategies rather than traditional growth approaches.

See our curated list of related YouTube videos on SPYI.

See all NEOS ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SPY has outpaced SPYI over the trailing twelve months, posting a 22.82% total return against 19.30%. The lead holds up over 3 years too: SPY has compounded at 21.44% a year, against 16.29% for SPYI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3YSince Aug 2022Volatility Sharpe Sortino Max drawdown
SPY13.68%22.82%21.44%19.87%15.3%0.981.42-18.8%
SPYI10.57%19.30%16.29%15.57%12.6%0.841.20-16.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Aug 2022” measures every fund from August 30, 2022 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SPY (SPDR S&P 500 ETF Trust) and SPYI (NEOS S&P 500 High Income ETF) are both dividend ETFs, but they take different approaches.

SPYI offers the higher yield at 11.73% vs 0.99% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SPY is cheaper with an expense ratio of 0.10% compared to 0.68%.

SPY is the larger fund by assets ($812B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose SPY

SPDR S&P 500 ETF Trust

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.10% expense ratio vs 0.68% for SPYI.

Choose SPYI

NEOS S&P 500 High Income ETF

  • Want to maximize current income — SPYI distributes roughly 11.73% from selling options premium, vs 0.99% for SPY.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
  • Prefer lower volatility — a beta of 0.7 vs 1.0 for SPY.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, SPY would generate roughly $8.25/month, while SPYI would produce $97.75/month, at current distribution rates.

SPY yield0.99%
SPYI yield11.73%
Monthly diff on $10K$89.50

Cost & efficiency

Over 10 years on $10,000, SPY would cost approximately $100 in fees vs $680 for SPYI (simplified, not compounded). The $580.00 difference may be offset by yield or performance.

SPY ER0.10%
SPYI ER0.68%

Strategy & risk

SPY tracks S&P 500 Index with a large cap approach, while SPYI tracks S&P 500 Index with an options approach. Beta is 1.0 for SPY and 0.7 for SPYI, indicating SPYI is less volatile relative to the market.

SPY beta1.0
SPYI beta0.7

Fund details

SPY is managed by State Street (launched 01/22/1993) with $812B in assets. SPYI is managed by NEOS (launched 08/29/2022) with $11.1B in assets.

SPY AUM$812B
SPYI AUM$11.1B
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Frequently asked questions

What is the current distribution yield for SPY and SPYI?

SPY currently distributes 0.99% and SPYI 11.73%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPY or SPYI better for dividend income?

It depends on your goals. SPYI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SPY and SPYI?

SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach, while SPYI (NEOS S&P 500 High Income ETF) tracks S&P 500 Index with an options approach. They are issued by State Street and NEOS respectively.

Can I hold both SPY and SPYI?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SPY or SPYI safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, SPYI scores 90, so SPY's payout currently looks the more resilient of the two. SPYI has also shown lower price volatility (beta 0.70 vs 1.00 for SPY). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, SPY or SPYI?

SPY has an expense ratio of 0.10% while SPYI charges 0.68%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SPY vs SPYI generate?

At current rates, $10,000 in SPY would generate roughly $8.25 per month ($99.00 annually). The same in SPYI would produce about $97.75 per month ($1,173.00 annually).

Which has performed better historically, SPY or SPYI?

SPY has outpaced SPYI over the trailing twelve months, posting a 22.82% total return against 19.30%. The lead holds up over 3 years too: SPY has compounded at 21.44% a year, against 16.29% for SPYI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SPY vs SPYI — at a glance

Generated August 8, 2026.

Overview

SPY is the foundational S&P 500 tracking ETF—it owns the 500 stocks directly and delivers the index's return (currently around 1% yield) before a minimal 0.10% fee. SPYI also references the S&P 500 but uses an options overlay strategy to generate synthetic income, targeting a 11.74% distribution rate paid monthly. The core distinction: SPY is pure equity exposure to the index; SPYI is the same index wrapped in a derivatives strategy designed to harvest option premium.

How they differ

SPYI's options overlay is the fundamental difference. Instead of holding stocks and collecting dividends, SPYI sells call options against S&P 500 exposure to generate the income that pushes its yield to 11.74%—roughly 12 times SPY's 0.98% distribution rate. That premium comes with a trade-off: SPYI's beta of 0.7 versus SPY's 1.0 reflects cap on upside (short calls limit gains if the market rallies sharply), while its 0.68% expense ratio runs nearly seven times higher than SPY's 0.10%. SPYI also trades at $54.18 on a much smaller $11.1B asset base, compared to SPY's $812B, and has operated for less than two years since its August 2022 inception.

Who each is best for

  • SPY: Fits investors who want broad S&P 500 equity exposure with minimal drag and predictable quarterly income, relying on capital appreciation and modest dividend collection over long time horizons.
  • SPYI: Fits investors seeking monthly distributions higher than the underlying index can naturally provide, accept capped upside from call sales, and are comfortable with derivatives-based mechanics and shorter track record in exchange for tax-deferred income generation.

Key risks to know

  • NAV erosion at extreme yields: SPYI's 11.74% distribution rate far exceeds the S&P 500's organic dividend yield plus reasonable capital appreciation, suggesting meaningful reliance on return-of-capital treatment and potential principal erosion over time if markets remain flat or decline.
  • Call cap on equity appreciation: The short calls that fund SPYI's income will limit gains if the S&P 500 rallies sharply, effectively capping SPYI's upside relative to SPY; that cap is reflected in the lower 0.7 beta and may show as persistent underperformance in bull markets.
  • Short operating history: SPYI's August 2022 inception means it has operated through less than two years of market activity, including a recession-adjacent period; there is no track record for how the strategy performs across a full market cycle or extended bear market.
  • Smaller asset base and liquidity: At $11.1B, SPYI has one-seventieth SPY's assets; tighter spreads, lower trading volume, and potential for faster NAV drift during stressed market conditions are plausible, though the $11.1B size is not negligible.

Bottom line

SPY offers straightforward S&P 500 exposure at rock-bottom cost and a modest, sustainable yield; SPYI offers monthly payments at 12× the rate, but only by sacrificing upside and accepting derivatives complexity and limited operating history. If you prioritize simplicity, cost, and full participation in market gains, SPY's structure is hard to beat; if you need high current income and can tolerate capped appreciation, SPYI's premium harvest deserves scrutiny—though its short track record means outcomes in a sustained bull or bear market remain untested.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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