HYSA vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricHYSASPYWinner
Expense Ratio0.55%0.09%
AUM$67M$821.1B
Dividend Yield6.78%1.01%
Holdings5505
YTD Return+1.45%+14.24%
1Y Return+4.55%+21.71%
3Y Return (annualized)+7.87%+22.10%
5Y Return (annualized)-+13.21%
Volatility (annualized)4.5%15.3%
Max Drawdown-4.9%-56.5%
Fund FamilyBondBloxxState Street Investment Management
CategoryFixed IncomeEquity
InceptionSep 18, 2023Jan 22, 1993

HYSA vs SPY Performance

BondBloxx USD High Yield Bond Sector Rotation ETF (HYSA) is a ETF from BondBloxx and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HYSA returned +4.55% while SPY returned +21.71%. Year to date, HYSA is up 1.45% versus a gain of 14.24% for SPY.

Over three years, HYSA compounded at +7.87% per year against +22.10% for SPY. Across the full 3-year window we track, SPY has the edge at +8.86% annualized vs +7.87%. 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 4.5% for HYSA. 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 -4.9% for HYSA 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYSA charges 0.55% per year while SPY charges 0.09%. On a $10,000 position that is $55 vs $9 annually, a gap of $46 per year that compounds over a long holding period. On income, HYSA currently yields 6.78% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HYSA 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, HYSA or SPY?

HYSA has an expense ratio of 0.55% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, HYSA or SPY?

Over the past year HYSA returned +4.55% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), HYSA annualized +7.87% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, HYSA or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 4.5% for HYSA. Worst drawdown: HYSA -4.9% vs SPY -56.5%.

Should I hold both HYSA and SPY?

HYSA and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYSA and SPY?

HYSA and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, HYSA or SPY?

HYSA yields 6.78% while SPY yields 1.01%, so HYSA currently pays the higher dividend yield.

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