SDHY vs SPY
SDHY vs SPY
PGIM Short Duration High Yield Opportunities Fund 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 | SDHY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.09% | |
| AUM | $441M | $789.1B | |
| Dividend Yield | 7.47% | 1.01% | |
| Holdings | 572 | 505 | |
| YTD Return | +1.94% | +9.93% | |
| 1Y Return | +4.65% | +19.50% | |
| 3Y Return (annualized) | +10.67% | +19.33% | |
| 5Y Return (annualized) | +4.71% | +12.82% | |
| Volatility (annualized) | 10.1% | 15.3% | |
| Max Drawdown | -23.1% | -56.5% | |
| Fund Family | PGIM Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 25, 2020 | Jan 22, 1993 |
SDHY vs SPY Performance
PGIM Short Duration High Yield Opportunities Fund (SDHY) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SDHY returned +4.65% while SPY returned +19.50%. Year to date, SDHY is up 1.94% versus a gain of 9.93% for SPY.
Over three years, SDHY compounded at +10.67% per year against +19.33% for SPY; over five years the annualized figures are +4.71% and +12.82% respectively. Across the full 6-year window we track, SPY has the edge at +8.74% annualized vs +4.05%. 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 10.1% for SDHY. 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 -23.1% for SDHY 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDHY charges 1.90% per year while SPY charges 0.09%. On a $10,000 position that is $190 vs $9 annually, a gap of $181 per year that compounds over a long holding period. On income, SDHY currently yields 7.47% against 1.01% for SPY.
Holdings Overlap
SDHY and SPY share 0 holdings out of 959 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, SDHY or SPY?
SDHY has an expense ratio of 1.90% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $181 per year of difference.
Which performed better, SDHY or SPY?
Over the past year SDHY returned +4.65% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), SDHY annualized +4.05% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, SDHY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.1% for SDHY. Worst drawdown: SDHY -23.1% vs SPY -56.5%.
Should I hold both SDHY and SPY?
SDHY and SPY have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDHY and SPY?
SDHY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 959 unique securities.
Which pays a higher dividend, SDHY or SPY?
SDHY yields 7.47% while SPY yields 1.01%, so SDHY currently pays the higher dividend yield.
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