HIPS vs SPY
GraniteShares HIPS US High Income 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 | HIPS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.17% | 0.09% | |
| AUM | $113M | $789.1B | |
| Dividend Yield | 11.21% | 1.01% | |
| Holdings | 41 | 505 | |
| YTD Return | +6.22% | +13.39% | |
| 1Y Return | +8.57% | +22.52% | |
| 3Y Return (annualized) | +9.78% | +21.36% | |
| 5Y Return (annualized) | +4.72% | +13.19% | |
| Volatility (annualized) | 18.5% | 15.3% | |
| Max Drawdown | -61.6% | -56.5% | |
| Fund Family | GraniteShares | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 7, 2015 | Jan 22, 1993 |
HIPS vs SPY Performance
GraniteShares HIPS US High Income ETF (HIPS) is a ETF from GraniteShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HIPS returned +8.57% while SPY returned +22.52%. Year to date, HIPS is up 6.22% versus a gain of 13.39% for SPY.
Over three years, HIPS compounded at +9.78% per year against +21.36% for SPY; over five years the annualized figures are +4.72% and +13.19% respectively. Across the full 12-year window we track, SPY has the edge at +8.84% annualized vs +0.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HIPS has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 15.3% for SPY. 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 -61.6% for HIPS 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HIPS charges 1.17% per year while SPY charges 0.09%. On a $10,000 position that is $117 vs $9 annually, a gap of $108 per year that compounds over a long holding period. On income, HIPS currently yields 11.21% against 1.01% for SPY.
Holdings Overlap
HIPS and SPY share 0 holdings out of 543 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, HIPS or SPY?
HIPS has an expense ratio of 1.17% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $108 per year of difference.
Which performed better, HIPS or SPY?
Over the past year HIPS returned +8.57% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), HIPS annualized +0.12% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, HIPS or SPY?
HIPS has been the more volatile fund at 18.5% annualized versus 15.3% for SPY. Worst drawdown: HIPS -61.6% vs SPY -56.5%.
Should I hold both HIPS and SPY?
HIPS and SPY 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 HIPS and SPY?
HIPS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, HIPS or SPY?
HIPS yields 11.21% while SPY yields 1.01%, so HIPS currently pays the higher dividend yield.
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