SIO vs SPY
Touchstone Strategic Income 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 | SIO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.09% | |
| AUM | $279M | $789.1B | |
| Dividend Yield | 4.77% | 1.01% | |
| Holdings | 205 | 505 | |
| YTD Return | +0.70% | +13.68% | |
| 1Y Return | +3.90% | +21.53% | |
| 3Y Return (annualized) | +7.14% | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -7.3% | -56.5% | |
| Fund Family | Touchstone Investments | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 21, 2022 | Jan 22, 1993 |
SIO vs SPY Performance
Touchstone Strategic Income ETF (SIO) is a ETF from Touchstone Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SIO returned +3.90% while SPY returned +21.53%. Year to date, SIO is up 0.70% versus a gain of 13.68% for SPY.
Over three years, SIO compounded at +7.14% per year against +21.44% for SPY. Across the full 4-year window we track, SPY has the edge at +8.85% annualized vs +5.90%. 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 SIO. 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 -7.3% for SIO 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SIO 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, SIO currently yields 4.77% against 1.01% for SPY.
Holdings Overlap
SIO and SPY share 12 holdings out of 613 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SIO or SPY?
SIO 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, SIO or SPY?
Over the past year SIO returned +3.90% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SIO annualized +5.90% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SIO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for SIO. Worst drawdown: SIO -7.3% vs SPY -56.5%.
Should I hold both SIO and SPY?
SIO and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SIO and SPY?
SIO and SPY share 12 common holdings with a 2.4% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, SIO or SPY?
SIO yields 4.77% while SPY yields 1.01%, so SIO currently pays the higher dividend yield.
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