HIX vs SPY
HIX vs SPY
Western Asset High Income Fund II Inc. 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 | HIX | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 3.82% | 0.09% | |
| AUM | $363M | $789.1B | |
| Dividend Yield | 14.27% | 1.01% | |
| Holdings | 437 | 505 | |
| YTD Return | +2.59% | +13.79% | |
| 1Y Return | +6.41% | +23.66% | |
| 3Y Return (annualized) | +5.94% | +21.40% | |
| 5Y Return (annualized) | -0.77% | +13.37% | |
| Volatility (annualized) | 18.7% | 15.3% | |
| Max Drawdown | -75.2% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 1998 | Jan 22, 1993 |
HIX vs SPY Performance
Western Asset High Income Fund II Inc. (HIX) 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 HIX returned +6.41% while SPY returned +23.66%. Year to date, HIX is up 2.59% versus a gain of 13.79% for SPY.
Over three years, HIX compounded at +5.94% per year against +21.40% for SPY; over five years the annualized figures are -0.77% and +13.37% respectively. Across the full 28-year window we track, SPY has the edge at +8.85% annualized vs -2.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HIX has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -75.2% for HIX 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIX charges 3.82% per year while SPY charges 0.09%. On a $10,000 position that is $382 vs $9 annually, a gap of $373 per year that compounds over a long holding period. On income, HIX currently yields 14.27% against 1.01% for SPY.
Holdings Overlap
HIX and SPY share 0 holdings out of 791 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, HIX or SPY?
HIX has an expense ratio of 3.82% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $373 per year of difference.
Which performed better, HIX or SPY?
Over the past year HIX returned +6.41% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (28 years), HIX annualized -2.36% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, HIX or SPY?
HIX has been the more volatile fund at 18.7% annualized versus 15.3% for SPY. Worst drawdown: HIX -75.2% vs SPY -56.5%.
Should I hold both HIX and SPY?
HIX and SPY have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIX and SPY?
HIX and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 791 unique securities.
Which pays a higher dividend, HIX or SPY?
HIX yields 14.27% while SPY yields 1.01%, so HIX currently pays the higher dividend yield.
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