SPY vs XHYD

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYXHYDWinner
Expense Ratio0.09%0.35%
AUM$789.1B$14M
Dividend Yield1.01%5.76%
Holdings505175
YTD Return+13.39%+0.24%
1Y Return+22.52%+5.87%
3Y Return (annualized)+21.36%+7.53%
5Y Return (annualized)+13.19%-
Volatility (annualized)15.3%7.4%
Max Drawdown-56.5%-11.0%
Fund FamilyState Street Investment ManagementBondBloxx
CategoryEquityFixed Income
InceptionJan 22, 1993Feb 15, 2022

SPY vs XHYD Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF (XHYD) is a ETF from BondBloxx. Over the past year SPY returned +22.52% while XHYD returned +5.87%. Year to date, SPY is up 13.39% versus a gain of 0.24% for XHYD.

Over three years, SPY compounded at +21.36% per year against +7.53% for XHYD. Across the full 4-year window we track, SPY has the edge at +8.84% annualized vs +4.75%. 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 7.4% for XHYD. 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 -56.5% for SPY and -11.0% for XHYD. 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while XHYD charges 0.35%. On a $10,000 position that is $9 vs $35 annually, a gap of $26 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.76% for XHYD.

Holdings Overlap

0.0%overlap

SPY and XHYD share 0 holdings out of 655 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, SPY or XHYD?

SPY has an expense ratio of 0.09% while XHYD charges 0.35%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, SPY or XHYD?

Over the past year SPY returned +22.52% vs +5.87% for XHYD, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SPY annualized +8.84% vs +4.75% for XHYD. Past performance does not guarantee future results.

Which is riskier, SPY or XHYD?

SPY has been the more volatile fund at 15.3% annualized versus 7.4% for XHYD. Worst drawdown: SPY -56.5% vs XHYD -11.0%.

Should I hold both SPY and XHYD?

SPY and XHYD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and XHYD?

SPY and XHYD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 655 unique securities.

Which pays a higher dividend, SPY or XHYD?

SPY yields 1.01% while XHYD yields 5.76%, so XHYD currently pays the higher dividend yield.

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