DSU vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. DSU offers more diversification with 898 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: DSU

Side-by-Side Comparison

MetricDSUSPYWinner
Expense Ratio1.72%0.09%
AUM$619M$789.1B
Dividend Yield12.34%1.01%
Holdings1,281505
YTD Return-0.84%+13.50%
1Y Return+0.36%+23.56%
3Y Return (annualized)+9.22%+21.17%
5Y Return (annualized)+6.44%+13.46%
Volatility (annualized)18.0%15.3%
Max Drawdown-84.1%-56.5%
Fund FamilyBlackRock, Inc. (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionMar 27, 1998Jan 22, 1993

DSU vs SPY Performance

Blackrock Debt Strategies Fund Inc. (DSU) is a ETF from BlackRock, Inc. (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year DSU returned +0.36% while SPY returned +23.56%. Year to date, DSU is down 0.84% versus a gain of 13.50% for SPY.

Over three years, DSU compounded at +9.22% per year against +21.17% for SPY; over five years the annualized figures are +6.44% and +13.46% respectively. Across the full 28-year window we track, SPY has the edge at +8.85% annualized vs -2.25%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DSU has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 15.3% 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 -84.1% for DSU and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DSU charges 1.72% per year while SPY charges 0.09%. On a $10,000 position that is $172 vs $9 annually, a gap of $163 per year that compounds over a long holding period. On income, DSU currently yields 12.34% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

DSU and SPY share 0 holdings out of 1401 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, DSU or SPY?

DSU has an expense ratio of 1.72% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $163 per year of difference.

Which performed better, DSU or SPY?

Over the past year DSU returned +0.36% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (28 years), DSU annualized -2.25% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, DSU or SPY?

DSU has been the more volatile fund at 18.0% annualized versus 15.3% for SPY. Worst drawdown: DSU -84.1% vs SPY -56.5%.

Should I hold both DSU and SPY?

DSU and SPY have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DSU and SPY?

DSU and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1401 unique securities.

Which pays a higher dividend, DSU or SPY?

DSU yields 12.34% while SPY yields 1.01%, so DSU currently pays the higher dividend yield.

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