SPY vs USHY
SPY vs USHY
State Street SPDR S&P 500 ETF Trust vs iShares Broad USD High Yield Corporate Bond ETF
Quick Verdict
USHY has a lower expense ratio. SPY delivered stronger 1-year returns. USHY offers more diversification with 1577 holdings.
Side-by-Side Comparison
| Metric | SPY | USHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.08% | |
| AUM | $789.1B | $29.0B | |
| Dividend Yield | 1.01% | 6.89% | |
| Holdings | 505 | 1,893 | |
| YTD Return | +9.93% | -1.71% | |
| 1Y Return | +19.50% | +1.21% | |
| 3Y Return (annualized) | +19.33% | +7.04% | |
| 5Y Return (annualized) | +12.82% | +3.25% | |
| Volatility (annualized) | 15.3% | 9.7% | |
| Max Drawdown | -56.5% | -31.0% | |
| Fund Family | State Street Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Oct 25, 2017 |
SPY vs USHY Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares Broad USD High Yield Corporate Bond ETF (USHY) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +19.50% while USHY returned +1.21%. Year to date, SPY is up 9.93% versus a loss of 1.71% for USHY.
Over three years, SPY compounded at +19.33% per year against +7.04% for USHY; over five years the annualized figures are +12.82% and +3.25% respectively. Across the full 9-year window we track, SPY has the edge at +8.74% annualized vs +2.09%. 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 9.7% for USHY. 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 -56.5% for SPY and -31.0% for USHY. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while USHY charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 6.89% for USHY.
Holdings Overlap
SPY and USHY share 0 holdings out of 2080 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, SPY or USHY?
SPY has an expense ratio of 0.09% while USHY charges 0.08%. USHY is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SPY or USHY?
Over the past year SPY returned +19.50% vs +1.21% for USHY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.74% vs +2.09% for USHY. Past performance does not guarantee future results.
Which is riskier, SPY or USHY?
SPY has been the more volatile fund at 15.3% annualized versus 9.7% for USHY. Worst drawdown: SPY -56.5% vs USHY -31.0%.
Should I hold both SPY and USHY?
SPY and USHY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USHY?
SPY and USHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2080 unique securities.
Which pays a higher dividend, SPY or USHY?
SPY yields 1.01% while USHY yields 6.89%, so USHY currently pays the higher dividend yield.
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