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Drawdown history

SPY observed max drawdown: 50.8%

SPDR S&P 500 ETF. From its 2007-10-31 peak, SPY fell 50.8% to the 2009-02-28 trough and needed 4.4 years to make a new high (2012-03-31). Computed from 405 months of observed fund history. Fund inception boundary (first available fund observation): 1993-01-29; the monthly analysis runs from 1993-01-31 through 2026-09-30.

Before 1993-01-29, the extended history is simulated. Observed fund drawdowns come first; simulation assumptions and results are separated below.

What is SPY's observed maximum drawdown?

SPY's observed maximum drawdown was 50.8%, from a peak in 2007-10-31 to a trough in 2009-02-28, based on monthly closes from fund prices first observed on 1993-01-29. The sample contains 405 monthly observations through 2026-09-30. Monthly closes can miss deeper daily losses.

SPY: observed fund prices, monthly closes
MeasureValue
Maximum drawdown-50.8%
Peak2007-10-31
Trough2009-02-28
Recovered2012-03-31
Monthly observations405

Last verified

What is SPY's observed maximum drawdown?

SPY's observed maximum drawdown was 50.8%, from a peak in 2007-10-31 to a trough in 2009-02-28, based on monthly closes from fund prices first observed on 1993-01-29.

How long did SPY take to recover from its worst drawdown?

SPY took 4.4 years from the 2007-10-31 peak to make a new high in 2012-03-31, based only on observed fund prices.

What was SPY's worst 12-month return?

SPY's worst observed rolling 12-month return was -43.4%, in the 12 months ending 2009-02-28.

SPY observed fund drawdown statistics

Maximum drawdown
-50.8%

2007-10-31 peak to 2009-02-28 trough.

Recovery time
4.4 years

New high reached 2012-03-31.

Time underwater
63.0%

Share of all months spent below a prior high.

Worst 12 months
-43.4%

Rolling year ending 2009-02-28.

The biggest SPY drawdowns in observed fund history

DepthPeakTroughRecoveredPeak to troughTotal underwater
-50.8%2007-10-312009-02-282012-03-3116 mo4.4 years
-44.7%2000-08-312002-09-302006-11-3025 mo6.3 years
-23.9%2021-12-312022-09-302023-12-319 mo2.0 years
-19.4%2019-12-312020-03-312020-07-313 mo7 months
-15.3%1998-06-301998-08-311998-11-302 mo5 months

Methodology: observed SPY fund prices only, first available from 1993-01-29. Monthly closing-price statistics cover 1993-01-31 through 2026-09-30; no proxy or pre-inception simulation is included in this table. Educational information, not investment advice.

Hypothetical, not observed

Before 1993-01-29: simulated from the underlying index with assumptions

This separate series combines observed prices with a modeled pre-inception extension from 1970-01-31 through 2026-10-31. The 2026-10-31 endpoint is the legacy current partial-month bucket/month-end label, not evidence that SPY was observed through that future date. It is not observed SPY performance. The API's observed boundary is 1993-01-29; observed monthly statistics run from 1993-01-31 through 2026-09-30.

  • Rebalancing convention: monthly rebalance at month-end close; drawdown statistics use monthly closing prices.
  • Proxy source for SPY: VFINX (proxy_etf), from 1987-01-06 to 1993-01-28.
  • Proxy source for SPY: SP500_TR_DAILY (static), from 1976-08-31 to 1987-01-05.
  • Proxy source for SPY: spy_tr (static_monthly), from 1900-01-31 to 1976-08-30.

Modeled extended statistics

Maximum drawdown
-50.8%

2007-10-31 peak to 2009-02-28 trough.

Recovery time
4.4 years

New high reached 2012-03-31.

Time underwater
65.3%

Share of all months spent below a prior high.

Worst 12 months
-43.4%

Rolling year ending 2009-02-28.

Modeled extended drawdowns

DepthPeakTroughRecoveredPeak to troughTotal underwater
-50.8%2007-10-312009-02-282012-03-3116 mo4.4 years
-44.7%2000-08-312002-09-302006-11-3025 mo6.3 years
-42.7%1972-12-311974-09-301976-06-3021 mo3.5 years
-29.8%1987-08-311987-11-301989-05-313 mo21 months
-23.9%2021-12-312022-09-302023-12-319 mo2.0 years

Monthly closing prices, peak-to-trough on total return where available. The pre-inception segment is a reconstruction, not a live fund record, and actual tracking, financing, taxes, spreads, and volatility drag can differ.

Drawdowns are the reason tactical strategies exist

Buy-and-hold SPY means living through every number on this page. BestFolio tracks published TAA strategies whose whole job is cutting these drawdowns, with out-of-sample track records.

SPY Observed Max Drawdown: 50.8% (2007 to 2009), Fund History Since 1993 | BestFolio