FDHY vs SPY
Fidelity Enhanced High Yield 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 | FDHY | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $536M | $789.1B | |
| Dividend Yield | 7.10% | 1.01% | |
| Holdings | 302 | 505 | |
| YTD Return | +3.45% | +13.68% | |
| 1Y Return | +6.89% | +21.53% | |
| 3Y Return (annualized) | +8.72% | +21.44% | |
| 5Y Return (annualized) | +3.97% | +13.18% | |
| Volatility (annualized) | 8.0% | 15.3% | |
| Max Drawdown | -20.3% | -56.5% | |
| Fund Family | Fidelity Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 12, 2018 | Jan 22, 1993 |
FDHY vs SPY Performance
Fidelity Enhanced High Yield ETF (FDHY) is a ETF from Fidelity Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FDHY returned +6.89% while SPY returned +21.53%. Year to date, FDHY is up 3.45% versus a gain of 13.68% for SPY.
Over three years, FDHY compounded at +8.72% per year against +21.44% for SPY; over five years the annualized figures are +3.97% and +13.18% respectively. Across the full 8-year window we track, SPY has the edge at +8.85% annualized vs +4.17%. 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 8.0% for FDHY. 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 -20.3% for FDHY 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDHY charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, FDHY currently yields 7.10% against 1.01% for SPY.
Holdings Overlap
FDHY and SPY share 0 holdings out of 507 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, FDHY or SPY?
FDHY has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, FDHY or SPY?
Over the past year FDHY returned +6.89% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), FDHY annualized +4.17% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FDHY or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.0% for FDHY. Worst drawdown: FDHY -20.3% vs SPY -56.5%.
Should I hold both FDHY and SPY?
FDHY and SPY have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDHY and SPY?
FDHY and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, FDHY or SPY?
FDHY yields 7.10% while SPY yields 1.01%, so FDHY currently pays the higher dividend yield.
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