HYGI vs SPY
iShares Inflation Hedged High Yield Bond 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 505 holdings.
Side-by-Side Comparison
| Metric | HYGI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.09% | |
| AUM | $5M | $789.1B | |
| Dividend Yield | 4.89% | 1.01% | |
| Holdings | 51 | 505 | |
| YTD Return | +5.19% | +14.47% | |
| 1Y Return | +8.69% | +21.96% | |
| 3Y Return (annualized) | +7.58% | +21.70% | |
| 5Y Return (annualized) | - | +13.30% | |
| Volatility (annualized) | 7.6% | 15.3% | |
| Max Drawdown | -9.7% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2022 | Jan 22, 1993 |
HYGI vs SPY Performance
iShares Inflation Hedged High Yield Bond ETF (HYGI) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HYGI returned +8.69% while SPY returned +21.96%. Year to date, HYGI is up 5.19% versus a gain of 14.47% for SPY.
Over three years, HYGI compounded at +7.58% per year against +21.70% for SPY. Across the full 3-year window we track, SPY has the edge at +8.87% annualized vs +8.44%. 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 7.6% for HYGI. 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 -9.7% for HYGI 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGI charges 0.52% per year while SPY charges 0.09%. On a $10,000 position that is $52 vs $9 annually, a gap of $43 per year that compounds over a long holding period. On income, HYGI currently yields 4.89% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, HYGI or SPY?
HYGI has an expense ratio of 0.52% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, HYGI or SPY?
Over the past year HYGI returned +8.69% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), HYGI annualized +8.44% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, HYGI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.6% for HYGI. Worst drawdown: HYGI -9.7% vs SPY -56.5%.
Should I hold both HYGI and SPY?
HYGI and SPY have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, HYGI or SPY?
HYGI yields 4.89% while SPY yields 1.01%, so HYGI currently pays the higher dividend yield.
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