SPBO vs VYM

Quick Verdict

SPBO has a lower expense ratio. VYM delivered stronger 1-year returns. SPBO offers more diversification with 954 holdings.

Lower Fees: SPBOHigher Returns: VYMMore Diversified: SPBO

Side-by-Side Comparison

MetricSPBOVYMWinner
Expense Ratio0.03%0.04%
AUM$2.1B$79.0B
Dividend Yield5.10%2.86%
Holdings4,021568
YTD Return-0.31%+15.80%
1Y Return+2.12%+26.12%
3Y Return (annualized)+5.05%+18.25%
5Y Return (annualized)+0.02%+12.51%
Volatility (annualized)6.1%14.6%
Max Drawdown-22.4%-58.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionApr 6, 2011Nov 10, 2006

SPBO vs VYM Performance

State Street SPDR Portfolio Corporate Bond ETF (SPBO) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SPBO returned +2.12% while VYM returned +26.12%. Year to date, SPBO is down 0.31% versus a gain of 15.80% for VYM.

Over three years, SPBO compounded at +5.05% per year against +18.25% for VYM; over five years the annualized figures are +0.02% and +12.51% respectively. Across the full 15-year window we track, VYM has the edge at +7.07% annualized vs +1.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.1% for SPBO. 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 -22.4% for SPBO and -58.8% for VYM. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPBO charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SPBO currently yields 5.10% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

SPBO and VYM share 1 holdings out of 1511 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPBOWeight in VYMDifference
DUK0.00%0.45%0.45%

Frequently Asked Questions

Which is cheaper, SPBO or VYM?

SPBO has an expense ratio of 0.03% while VYM charges 0.04%. SPBO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, SPBO or VYM?

Over the past year SPBO returned +2.12% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), SPBO annualized +1.11% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, SPBO or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.1% for SPBO. Worst drawdown: SPBO -22.4% vs VYM -58.8%.

Should I hold both SPBO and VYM?

SPBO and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPBO and VYM?

SPBO and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1511 unique securities.

Which pays a higher dividend, SPBO or VYM?

SPBO yields 5.10% while VYM yields 2.86%, so SPBO currently pays the higher dividend yield.

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