IGHG vs SPY

IGHG vs SPY
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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

MetricIGHGSPYWinner
Expense Ratio0.30%0.09%
AUM$335M$821.1B
Dividend Yield5.12%1.01%
Holdings186505
YTD Return-0.92%+14.24%
1Y Return+0.56%+21.71%
3Y Return (annualized)+6.36%+22.10%
5Y Return (annualized)+4.74%+13.21%
Volatility (annualized)11.7%15.3%
Max Drawdown-43.7%-56.5%
Fund FamilyProSharesState Street Investment Management
CategoryFixed IncomeEquity
InceptionNov 5, 2013Jan 22, 1993

IGHG vs SPY Performance

ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) is a ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year IGHG returned +0.56% while SPY returned +21.71%. Year to date, IGHG is down 0.92% versus a gain of 14.24% for SPY.

Over three years, IGHG compounded at +6.36% per year against +22.10% for SPY; over five years the annualized figures are +4.74% and +13.21% respectively. Across the full 13-year window we track, SPY has the edge at +8.86% annualized vs +3.43%. 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 11.7% for IGHG. 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 -43.7% for IGHG 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IGHG 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, IGHG currently yields 5.12% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, IGHG or SPY?

IGHG 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, IGHG or SPY?

Over the past year IGHG returned +0.56% vs +21.71% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), IGHG annualized +3.43% vs +8.86% for SPY. Past performance does not guarantee future results.

Which is riskier, IGHG or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.7% for IGHG. Worst drawdown: IGHG -43.7% vs SPY -56.5%.

Should I hold both IGHG and SPY?

IGHG and SPY have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IGHG or SPY?

IGHG yields 5.12% while SPY yields 1.01%, so IGHG currently pays the higher dividend yield.

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