HFSI 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

MetricHFSISPYWinner
Expense Ratio0.49%0.09%
AUM$1.0B$789.1B
Dividend Yield5.25%1.01%
Holdings1,019505
YTD Return-2.23%+9.93%
1Y Return+1.04%+19.50%
3Y Return (annualized)+6.44%+19.33%
5Y Return (annualized)-+12.82%
Volatility (annualized)6.8%15.3%
Max Drawdown-19.3%-56.5%
Fund FamilyHartford FundsState Street Investment Management
CategoryFixed IncomeEquity
InceptionSep 21, 2021Jan 22, 1993

HFSI vs SPY Performance

Hartford Strategic Income ETF (HFSI) is a ETF from Hartford Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HFSI returned +1.04% while SPY returned +19.50%. Year to date, HFSI is down 2.23% versus a gain of 9.93% for SPY.

Over three years, HFSI compounded at +6.44% per year against +19.33% for SPY. Across the full 5-year window we track, SPY has the edge at +8.74% annualized vs +1.69%. 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 6.8% for HFSI. 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 -19.3% for HFSI 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HFSI charges 0.49% per year while SPY charges 0.09%. On a $10,000 position that is $49 vs $9 annually, a gap of $40 per year that compounds over a long holding period. On income, HFSI currently yields 5.25% against 1.01% for SPY.

Holdings Overlap

0.2%overlap

HFSI and SPY share 7 holdings out of 858 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HFSIWeight in SPYDifference
C0.03%0.38%0.35%
NEE0.04%0.28%0.24%
ARES0.25%0.04%0.21%
KKRProProPro
PCGProProPro
BDXProProPro
APTVProProPro
See all 7 holdings HFSI shares with SPY
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, HFSI or SPY?

HFSI has an expense ratio of 0.49% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, HFSI or SPY?

Over the past year HFSI returned +1.04% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), HFSI annualized +1.69% vs +8.74% for SPY. Past performance does not guarantee future results.

Which is riskier, HFSI or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.8% for HFSI. Worst drawdown: HFSI -19.3% vs SPY -56.5%.

Should I hold both HFSI and SPY?

HFSI and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HFSI and SPY?

HFSI and SPY share 7 common holdings with a 0.2% weight overlap. Combined, they hold 858 unique securities.

Which pays a higher dividend, HFSI or SPY?

HFSI yields 5.25% while SPY yields 1.01%, so HFSI currently pays the higher dividend yield.

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