HYLS 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

MetricHYLSSPYWinner
Expense Ratio0.69%0.09%
AUM$1.6B$789.1B
Dividend Yield6.71%1.01%
Holdings315505
YTD Return+1.09%+13.50%
1Y Return+3.50%+23.56%
3Y Return (annualized)+7.36%+21.17%
5Y Return (annualized)+2.82%+13.46%
Volatility (annualized)7.1%15.3%
Max Drawdown-29.1%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryFixed IncomeEquity
InceptionFeb 25, 2013Jan 22, 1993

HYLS vs SPY Performance

First Trust Tactical High Yield ETF (HYLS) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HYLS returned +3.50% while SPY returned +23.56%. Year to date, HYLS is up 1.09% versus a gain of 13.50% for SPY.

Over three years, HYLS compounded at +7.36% per year against +21.17% for SPY; over five years the annualized figures are +2.82% and +13.46% respectively. Across the full 13-year window we track, SPY has the edge at +8.85% annualized vs +0.97%. 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 7.1% for HYLS. 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 -29.1% for HYLS 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYLS charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, HYLS currently yields 6.71% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HYLS and SPY share 0 holdings out of 722 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, HYLS or SPY?

HYLS has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.

Which performed better, HYLS or SPY?

Over the past year HYLS returned +3.50% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), HYLS annualized +0.97% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, HYLS or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 7.1% for HYLS. Worst drawdown: HYLS -29.1% vs SPY -56.5%.

Should I hold both HYLS and SPY?

HYLS and SPY have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYLS and SPY?

HYLS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 722 unique securities.

Which pays a higher dividend, HYLS or SPY?

HYLS yields 6.71% while SPY yields 1.01%, so HYLS currently pays the higher dividend yield.

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