FCSH vs SPY
Federated Hermes Short Duration Corporate ETF 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 | FCSH | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.09% | |
| AUM | $65M | $789.1B | |
| Dividend Yield | 4.08% | 1.01% | |
| Holdings | 175 | 505 | |
| YTD Return | +0.76% | +13.75% | |
| 1Y Return | +3.02% | +22.91% | |
| 3Y Return (annualized) | +5.16% | +21.67% | |
| 5Y Return (annualized) | - | +13.32% | |
| Volatility (annualized) | 3.2% | 15.3% | |
| Max Drawdown | -8.5% | -56.5% | |
| Fund Family | Federated Hermes | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Jan 22, 1993 |
FCSH vs SPY Performance
Federated Hermes Short Duration Corporate ETF (FCSH) is a ETF from Federated Hermes and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FCSH returned +3.02% while SPY returned +22.91%. Year to date, FCSH is up 0.76% versus a gain of 13.75% for SPY.
Over three years, FCSH compounded at +5.16% per year against +21.67% for SPY. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs +2.41%. 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 3.2% for FCSH. 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 -8.5% for FCSH 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCSH 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, FCSH currently yields 4.08% against 1.01% for SPY.
Holdings Overlap
FCSH and SPY share 0 holdings out of 646 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, FCSH or SPY?
FCSH 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, FCSH or SPY?
Over the past year FCSH returned +3.02% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), FCSH annualized +2.41% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FCSH or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.2% for FCSH. Worst drawdown: FCSH -8.5% vs SPY -56.5%.
Should I hold both FCSH and SPY?
FCSH and SPY have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCSH and SPY?
FCSH and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, FCSH or SPY?
FCSH yields 4.08% while SPY yields 1.01%, so FCSH currently pays the higher dividend yield.
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