SPHY vs VYM
SPHY vs VYM
State Street SPDR Portfolio High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SPHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $11.6B | $79.0B | |
| Dividend Yield | 7.24% | 2.86% | |
| Holdings | 1,942 | 568 | |
| YTD Return | +1.75% | +15.57% | |
| 1Y Return | +5.12% | +25.99% | |
| 3Y Return (annualized) | +8.18% | +18.02% | |
| 5Y Return (annualized) | +4.11% | +12.71% | |
| Volatility (annualized) | 8.6% | 14.6% | |
| Max Drawdown | -22.4% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 18, 2012 | Nov 10, 2006 |
SPHY vs VYM Performance
State Street SPDR Portfolio High Yield Bond ETF (SPHY) 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 SPHY returned +5.12% while VYM returned +25.99%. Year to date, SPHY is up 1.75% versus a gain of 15.57% for VYM.
Over three years, SPHY compounded at +8.18% per year against +18.02% for VYM; over five years the annualized figures are +4.11% and +12.71% respectively. Across the full 7-year window we track, VYM has the edge at +7.07% annualized vs +3.66%. 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 8.6% for SPHY. 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 SPHY 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPHY charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SPHY currently yields 7.24% against 2.86% for VYM.
Holdings Overlap
SPHY and VYM share 0 holdings out of 909 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, SPHY or VYM?
SPHY has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SPHY or VYM?
Over the past year SPHY returned +5.12% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), SPHY annualized +3.66% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SPHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.6% for SPHY. Worst drawdown: SPHY -22.4% vs VYM -58.8%.
Should I hold both SPHY and VYM?
SPHY and VYM 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 SPHY and VYM?
SPHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 909 unique securities.
Which pays a higher dividend, SPHY or VYM?
SPHY yields 7.24% while VYM yields 2.86%, so SPHY currently pays the higher dividend yield.
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