FLHY vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFLHYSPYWinner
Expense Ratio0.40%0.09%
AUM$1.2B$789.1B
Dividend Yield6.53%1.01%
Holdings263505
YTD Return-1.19%+13.28%
1Y Return+1.67%+23.94%
3Y Return (annualized)+7.35%+21.07%
5Y Return (annualized)+3.64%+13.27%
Volatility (annualized)8.2%15.3%
Max Drawdown-22.6%-56.5%
Fund FamilyFranklin Templeton Investments (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionMay 30, 2018Jan 22, 1993

FLHY vs SPY Performance

Franklin High Yield Corporate ETF (FLHY) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FLHY returned +1.67% while SPY returned +23.94%. Year to date, FLHY is down 1.19% versus a gain of 13.28% for SPY.

Over three years, FLHY compounded at +7.35% per year against +21.07% for SPY; over five years the annualized figures are +3.64% and +13.27% respectively. Across the full 8-year window we track, SPY has the edge at +8.84% annualized vs +5.24%. 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 8.2% for FLHY. 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 -22.6% for FLHY 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLHY charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, FLHY currently yields 6.53% against 1.01% for SPY.

Holdings Overlap

0.1%overlap

FLHY and SPY share 1 holdings out of 715 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLHYWeight in SPYDifference
BA0.11%0.29%0.18%

Frequently Asked Questions

Which is cheaper, FLHY or SPY?

FLHY has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, FLHY or SPY?

Over the past year FLHY returned +1.67% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), FLHY annualized +5.24% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, FLHY or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.2% for FLHY. Worst drawdown: FLHY -22.6% vs SPY -56.5%.

Should I hold both FLHY and SPY?

FLHY and SPY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLHY and SPY?

FLHY and SPY share 1 common holdings with a 0.1% weight overlap. Combined, they hold 715 unique securities.

Which pays a higher dividend, FLHY or SPY?

FLHY yields 6.53% while SPY yields 1.01%, so FLHY currently pays the higher dividend yield.

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