SHYD vs SPY
VanEck Short High Yield Muni ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SHYD offers more diversification with 541 holdings.
Side-by-Side Comparison
| Metric | SHYD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.09% | |
| AUM | $450M | $821.1B | |
| Dividend Yield | 3.63% | 1.01% | |
| Holdings | 541 | 505 | |
| YTD Return | -0.79% | +12.22% | |
| 1Y Return | +1.42% | +20.83% | |
| 3Y Return (annualized) | +3.85% | +21.70% | |
| 5Y Return (annualized) | +0.27% | +12.98% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -31.2% | -56.5% | |
| Fund Family | VanEck | State Street Investment Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 13, 2014 | Jan 22, 1993 |
SHYD vs SPY Performance
VanEck Short High Yield Muni ETF (SHYD) is a ETF from VanEck and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SHYD returned +1.42% while SPY returned +20.83%. Year to date, SHYD is down 0.79% versus a gain of 12.22% for SPY.
Over three years, SHYD compounded at +3.85% per year against +21.70% for SPY; over five years the annualized figures are +0.27% and +12.98% respectively. Across the full 13-year window we track, SPY has the edge at +8.79% annualized vs +2.08%. 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 5.7% for SHYD. 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 -31.2% for SHYD 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHYD charges 0.32% per year while SPY charges 0.09%. On a $10,000 position that is $32 vs $9 annually, a gap of $23 per year that compounds over a long holding period. On income, SHYD currently yields 3.63% against 1.01% for SPY.
Holdings Overlap
SHYD and SPY share 0 holdings out of 511 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, SHYD or SPY?
SHYD has an expense ratio of 0.32% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, SHYD or SPY?
Over the past year SHYD returned +1.42% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SHYD annualized +2.08% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, SHYD or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for SHYD. Worst drawdown: SHYD -31.2% vs SPY -56.5%.
Should I hold both SHYD and SPY?
SHYD and SPY have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHYD and SPY?
SHYD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, SHYD or SPY?
SHYD yields 3.63% while SPY yields 1.01%, so SHYD currently pays the higher dividend yield.
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