HYDB 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

MetricHYDBSPYWinner
Expense Ratio0.35%0.09%
AUM$1.6B$789.1B
Dividend Yield6.99%1.01%
Holdings265505
YTD Return-2.13%+13.28%
1Y Return+0.55%+23.94%
3Y Return (annualized)+6.99%+21.07%
5Y Return (annualized)+3.69%+13.27%
Volatility (annualized)7.7%15.3%
Max Drawdown-21.6%-56.5%
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionJul 11, 2017Jan 22, 1993

HYDB vs SPY Performance

iShares High Yield Systematic Bond ETF (HYDB) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HYDB returned +0.55% while SPY returned +23.94%. Year to date, HYDB is down 2.13% versus a gain of 13.28% for SPY.

Over three years, HYDB compounded at +6.99% per year against +21.07% for SPY; over five years the annualized figures are +3.69% and +13.27% respectively. Across the full 9-year window we track, SPY has the edge at +8.84% annualized vs +4.94%. 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 7.7% for HYDB. 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 -21.6% for HYDB 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

HYDB charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, HYDB currently yields 6.99% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HYDB and SPY share 0 holdings out of 706 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, HYDB or SPY?

HYDB has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, HYDB or SPY?

Over the past year HYDB returned +0.55% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), HYDB annualized +4.94% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, HYDB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 7.7% for HYDB. Worst drawdown: HYDB -21.6% vs SPY -56.5%.

Should I hold both HYDB and SPY?

HYDB 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 HYDB and SPY?

HYDB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 706 unique securities.

Which pays a higher dividend, HYDB or SPY?

HYDB yields 6.99% while SPY yields 1.01%, so HYDB currently pays the higher dividend yield.

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