HYI vs SPY
HYI vs SPY
Western Asset High Yield Defined Opportunity Fund 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 | HYI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.09% | |
| AUM | $146M | $789.1B | |
| Dividend Yield | 9.89% | 1.01% | |
| Holdings | 258 | 505 | |
| YTD Return | +0.25% | +13.10% | |
| 1Y Return | -2.25% | +22.80% | |
| 3Y Return (annualized) | +6.05% | +20.98% | |
| 5Y Return (annualized) | +1.32% | +13.20% | |
| Volatility (annualized) | 12.4% | 15.3% | |
| Max Drawdown | -48.5% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 27, 2010 | Jan 22, 1993 |
HYI vs SPY Performance
Western Asset High Yield Defined Opportunity Fund Inc. (HYI) 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 HYI returned -2.25% while SPY returned +22.80%. Year to date, HYI is up 0.25% versus a gain of 13.10% for SPY.
Over three years, HYI compounded at +6.05% per year against +20.98% for SPY; over five years the annualized figures are +1.32% and +13.20% respectively. Across the full 16-year window we track, SPY has the edge at +8.83% annualized vs -0.86%. 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 12.4% for HYI. 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 -48.5% for HYI 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYI charges 0.96% per year while SPY charges 0.09%. On a $10,000 position that is $96 vs $9 annually, a gap of $87 per year that compounds over a long holding period. On income, HYI currently yields 9.89% against 1.01% for SPY.
Holdings Overlap
HYI and SPY share 0 holdings out of 694 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, HYI or SPY?
HYI has an expense ratio of 0.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, HYI or SPY?
Over the past year HYI returned -2.25% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), HYI annualized -0.86% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, HYI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 12.4% for HYI. Worst drawdown: HYI -48.5% vs SPY -56.5%.
Should I hold both HYI and SPY?
HYI and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYI and SPY?
HYI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 694 unique securities.
Which pays a higher dividend, HYI or SPY?
HYI yields 9.89% while SPY yields 1.01%, so HYI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.