FHYS vs SPY
FHYS vs SPY
Federated Hermes Short Duration High Yield ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FHYS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $54M | $789.1B | |
| Dividend Yield | 5.82% | 1.01% | |
| Holdings | 252 | 505 | |
| YTD Return | +2.03% | +13.10% | |
| 1Y Return | +5.04% | +22.80% | |
| 3Y Return (annualized) | +7.29% | +20.98% | |
| 5Y Return (annualized) | - | +13.20% | |
| Volatility (annualized) | 4.6% | 15.3% | |
| Max Drawdown | -11.6% | -56.5% | |
| Fund Family | Federated Hermes | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Jan 22, 1993 |
FHYS vs SPY Performance
Federated Hermes Short Duration High Yield ETF (FHYS) is a ETF from Federated Hermes and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FHYS returned +5.04% while SPY returned +22.80%. Year to date, FHYS is up 2.03% versus a gain of 13.10% for SPY.
Over three years, FHYS compounded at +7.29% per year against +20.98% for SPY. Across the full 5-year window we track, SPY has the edge at +8.83% annualized vs +4.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.6% for FHYS. 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 -11.6% for FHYS 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHYS charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, FHYS currently yields 5.82% against 1.01% for SPY.
Holdings Overlap
FHYS and SPY share 0 holdings out of 708 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, FHYS or SPY?
FHYS has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, FHYS or SPY?
Over the past year FHYS returned +5.04% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), FHYS annualized +4.46% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, FHYS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.6% for FHYS. Worst drawdown: FHYS -11.6% vs SPY -56.5%.
Should I hold both FHYS and SPY?
FHYS and SPY have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHYS and SPY?
FHYS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 708 unique securities.
Which pays a higher dividend, FHYS or SPY?
FHYS yields 5.82% while SPY yields 1.01%, so FHYS currently pays the higher dividend yield.
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