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ETF Comparison

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

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

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.
  • TSPYInvestors who want to maximize current income — roughly 13.88%, generated by selling options premium.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SPY has outpaced TSPY over the trailing twelve months, posting a 16.38% total return against 14.55%. Measured from Aug 2024 — the start of shared available history — SPY has compounded at 18.21% a year versus 16.59% for TSPY. 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.
SymbolYTD cumulative1Y cumulativeSince Aug 2024Volatility Sharpe Sortino Max drawdown
SPY13.54%16.38%18.21%13.0%0.821.18-8.9%
TSPY11.05%14.55%16.59%12.7%0.711.03-9.6%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Aug 2024” measures every fund from August 15, 2024 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. 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 past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate and SEC yield

MetricSPYTSPY
Forward distribution rate0.98%13.88%
Trailing 12-month yield0.99%13.97%
30-day SEC yield—0.34%

Total return (price change plus reinvested distributions) is the Total returns section above. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSPYTSPY
Full nameSPDR S&P 500 ETF TrustTappAlpha S&P 500 Growth & Daily Income ETF
IssuerState StreetTappAlpha
Last Close$769.64 as of October 2, 2026$25.54 as of October 2, 2026
Distribution rate0.98%13.88%
Trailing 12-month yield0.99%13.97%
30-day SEC yield—0.34%
Distribution Safety Score™ 10079
Safety-Adjusted Yield 0.98%10.97%
Expense ratio0.0945%0.71%
AUM$817B$342M
Distribution frequencyQuarterlyMonthly
Underlying indexS&P 500 IndexSPDR S&P 500 ETF Trust (SPY)
ObjectiveTrack the S&P 500 Index before expenses.The TappAlpha S&P 500 Growth & Daily Income ETF (the "Fund") seeks current income while maintaining prospects for capital appreciation. The Fund’s secondary investment objective is to seek exposure to the performance of the SPDR S&P 500 ETF Trust ("SPY"), subject to a limit on potential investment gains.
Asset classEquityEquity
Inception date01/22/199308/14/2024
Beta1.00.935
Last dividend$1.88883$0.2954
Ex-dividend date09/18/202609/01/2026

Bottom lineChoose SPY if you want simple, diversified core exposure in one low-cost fund. Choose TSPY if you want to maximize current income — roughly 13.88%, generated by selling options premium. There's no free lunch: TSPY'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. TSPY 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
ETFs179
Total AUM$2146B

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
TappAlpha
ETFs5
Total AUM$832M

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

TappAlpha operates a focused ETF lineup of four funds organized around two main families: Growth & Daily Income and T² Lift Series. The company's fund offerings span growth-oriented strategies and daily income approaches, with ticker symbols including TDAQ, TDAX, TSPY, and TSYX that target investors seeking regular income generation or equity growth exposure. As a smaller, specialized ETF provider, TappAlpha positions itself in a niche segment of the ETF market focused on daily income strategies and differentiated growth approaches.

See our curated list of related YouTube videos on TSPY.

See all TappAlpha ETFs

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Quick verdict

SPY (SPDR S&P 500 ETF Trust) and TSPY (TappAlpha S&P 500 Growth & Daily Income ETF) are both dividend ETFs, but they take different approaches.

TSPY offers the higher yield at 13.88% vs 0.98% 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 0.0945% compared to 0.71%.

They have different reference exposures: SPY is linked to S&P 500 Index while TSPY is linked to SPDR S&P 500 ETF Trust (SPY), which means their performance drivers differ.

SPY is the larger fund by assets ($817B), but assets alone do not establish trading costs or 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 0.0945% expense ratio vs 0.71% for TSPY.

Choose TSPY

TappAlpha S&P 500 Growth & Daily Income ETF

  • Want to maximize current income — TSPY distributes roughly 13.88% from selling options premium, vs 0.98% for SPY.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

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 $24.50 cash per distribution, while TSPY would produce $115.67 cash per distribution, at current distribution rates.

SPY yield0.98%
TSPY yield13.88%
Cash diff on $10K$91.17

Cost & efficiency

Over 10 years on $10,000, SPY would cost approximately $95 in fees vs $710 for TSPY (simplified, not compounded). The $615.50 difference may be offset by yield or performance.

SPY ER0.0945%
TSPY ER0.71%

Strategy & risk

SPY tracks S&P 500 Index with a large cap approach, while TSPY tracks SPDR S&P 500 ETF Trust (SPY) with a growth approach. Beta is 1.0 for SPY and 0.935 for TSPY, making TSPY the less volatile of the two by this measure.

SPY beta1.0
TSPY beta0.935

Fund details

SPY is managed by State Street (launched 01/22/1993) with $817B in assets. TSPY is managed by TappAlpha (launched 08/14/2024) with $342M in assets.

SPY AUM$817B
TSPY AUM$342M
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Frequently asked questions

What is the current distribution rate for SPY and TSPY?

SPY currently distributes 0.98% and TSPY 13.88%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPY or TSPY better for dividend income?

It depends on your goals. TSPY 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 TSPY?

SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach, while TSPY (TappAlpha S&P 500 Growth & Daily Income ETF) tracks SPDR S&P 500 ETF Trust (SPY) with a growth approach. They are issued by State Street and TappAlpha respectively.

Can I hold both SPY and TSPY?

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 TSPY 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, TSPY scores 79, so SPY's payout currently looks the more resilient of the two. 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 TSPY?

SPY has an expense ratio of 0.0945% while TSPY charges 0.71%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SPY would generate roughly $24.50 cash per distribution ($98.00 annually). The same in TSPY would produce about $115.67 cash per distribution ($1,388.00 annually).

Which has performed better historically, SPY or TSPY?

SPY has outpaced TSPY over the trailing twelve months, posting a 16.38% total return against 14.55%. Measured from Aug 2024 — the start of shared available history — SPY has compounded at 18.21% a year versus 16.59% for TSPY. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SPY vs TSPY — at a glance

Generated October 3, 2026.

Overview

SPY is the canonical large-cap equity ETF, tracking the S&P 500 Index with $817B in assets and an expense ratio of 0.0945%.

How they differ

The fundamental distinction is strategy. That structural choice produces a stark yield gap: 13.88% for TSPY versus 0.98% for SPY—a difference of 12.90 percentage points. TSPY's expense ratio of 0.71% is higher than SPY's 0.0945%, reflecting the cost of managing the options overlay. Finally, TSPY's 0.935 beta suggests slightly lower volatility than the market, while SPY carries a 1.0 beta by construction.

Who each is best for

SPY: Fits investors seeking pure S&P 500 exposure with minimal friction—those building a core equity position, practicing dollar-cost averaging, or treating the fund as a foundational holding in a diversified portfolio. Also suits buy-and-hold investors who value tax efficiency and expect to reinvest or live off modest quarterly distributions.

TSPY: Designed for income-focused investors willing to trade away unlimited upside in exchange for a predictable monthly payout, or those who believe the market is range-bound and view the options premium as fair compensation for capped gains. Fits shorter time horizons where current income matters more than long-term appreciation.

Key risks to know

  • NAV erosion at elevated distribution yields. TSPY's 13.88% annualized payout is sustainable only if the underlying SPY generates sufficient call premium and capital appreciation to support it. Once market volatility collapses or SPY trades sideways, premiums shrink and the fund may rely on principal to fund distributions, eroding NAV over time.
  • Capped upside from the options overlay. TSPY's daily call selling means shareholders forgo gains beyond the strike price each month. In a strong rally, this drag compounds—the fund's 0.935 reflects this dampening. Investors in a rising market will systematically underperform SPY.
  • Concentration risk in a single underlying. TSPY's entire exposure is SPY. While SPY itself is diversified, TSPY adds no additional diversification—investors hold a single ETF's exposure with an overlay, not a portfolio.
  • Options and derivative risk. TSPY's daily 0DTE call selling exposes shareholders to assignment risk, gap risk during market dislocations, and the possibility that realized volatility will diverge sharply from implied volatility priced into the calls.

Bottom line

If you want core S&P 500 exposure with decades of track record and the lowest cost, SPY is the default anchor. If you prioritize monthly income and are comfortable locking in upside, TSPY's higher yield may offset its structural headwind—but only if you expect lateral or modest returns. The tradeoff hinges on whether you believe TSPY's call premium will persistently exceed the opportunity cost of missing gains; in a sustained bull market, that bet tends not to pay off. Past performance of either fund does not predict future results.

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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These comparisons follow the Dividend Vision methodology.