PHB vs SPY
Invesco Fundamental High Yield Corporate 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 503 holdings.
Side-by-Side Comparison
| Metric | PHB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $387M | $789.1B | |
| Dividend Yield | 5.06% | 1.01% | |
| Holdings | 268 | 505 | |
| YTD Return | +0.43% | +13.79% | |
| 1Y Return | +7.15% | +23.66% | |
| 3Y Return (annualized) | +8.52% | +21.40% | |
| 5Y Return (annualized) | +3.74% | +13.37% | |
| Volatility (annualized) | 16.1% | 15.3% | |
| Max Drawdown | -71.2% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2007 | Jan 22, 1993 |
PHB vs SPY Performance
Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PHB returned +7.15% while SPY returned +23.66%. Year to date, PHB is up 0.43% versus a gain of 13.79% for SPY.
Over three years, PHB compounded at +8.52% per year against +21.40% for SPY; over five years the annualized figures are +3.74% and +13.37% respectively. Across the full 18-year window we track, SPY has the edge at +8.85% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PHB has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -71.2% for PHB 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHB charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, PHB currently yields 5.06% against 1.01% for SPY.
Holdings Overlap
PHB and SPY share 0 holdings out of 763 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, PHB or SPY?
PHB has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PHB or SPY?
Over the past year PHB returned +7.15% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (18 years), PHB annualized -1.63% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, PHB or SPY?
PHB has been the more volatile fund at 16.1% annualized versus 15.3% for SPY. Worst drawdown: PHB -71.2% vs SPY -56.5%.
Should I hold both PHB and SPY?
PHB and SPY have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHB and SPY?
PHB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 763 unique securities.
Which pays a higher dividend, PHB or SPY?
PHB yields 5.06% while SPY yields 1.01%, so PHB currently pays the higher dividend yield.
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