SHYG vs SPY
SHYG vs SPY
iShares 0-5 Year High Yield Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SHYG offers more diversification with 1032 holdings.
Side-by-Side Comparison
| Metric | SHYG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.09% | |
| AUM | $7.6B | $789.1B | |
| Dividend Yield | 7.00% | 1.01% | |
| Holdings | 1,165 | 505 | |
| YTD Return | +1.73% | +9.93% | |
| 1Y Return | +4.95% | +19.50% | |
| 3Y Return (annualized) | +7.72% | +19.33% | |
| 5Y Return (annualized) | +4.84% | +12.82% | |
| Volatility (annualized) | 5.6% | 15.3% | |
| Max Drawdown | -26.3% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 15, 2013 | Jan 22, 1993 |
SHYG vs SPY Performance
iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) 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 SHYG returned +4.95% while SPY returned +19.50%. Year to date, SHYG is up 1.73% versus a gain of 9.93% for SPY.
Over three years, SHYG compounded at +7.72% per year against +19.33% for SPY; over five years the annualized figures are +4.84% and +12.82% respectively. Across the full 13-year window we track, SPY has the edge at +8.74% annualized vs +1.37%. 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 5.6% for SHYG. 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 -26.3% for SHYG 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SHYG charges 0.30% per year while SPY charges 0.09%. On a $10,000 position that is $30 vs $9 annually, a gap of $21 per year that compounds over a long holding period. On income, SHYG currently yields 7.00% against 1.01% for SPY.
Holdings Overlap
SHYG and SPY share 0 holdings out of 1535 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, SHYG or SPY?
SHYG has an expense ratio of 0.30% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, SHYG or SPY?
Over the past year SHYG returned +4.95% vs +19.50% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SHYG annualized +1.37% vs +8.74% for SPY. Past performance does not guarantee future results.
Which is riskier, SHYG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.6% for SHYG. Worst drawdown: SHYG -26.3% vs SPY -56.5%.
Should I hold both SHYG and SPY?
SHYG and SPY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHYG and SPY?
SHYG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1535 unique securities.
Which pays a higher dividend, SHYG or SPY?
SHYG yields 7.00% while SPY yields 1.01%, so SHYG currently pays the higher dividend yield.
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