FALN vs. SPHY

Last updated Jun 3, 2026

FALN (iShares Fallen Angels USD Bond ETF) and SPHY (SPDR Portfolio High Yield Bond ETF) are both High Yield Bonds funds - FALN tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index while SPHY tracks the ICE BofAML US High Yield Index. Both are passively managed. Over the past 5 years, FALN returned 3.89%/yr vs 4.48%/yr for SPHY. A 0.70 correlation means they provide meaningful diversification when combined. FALN charges 0.25%/yr vs 0.10%/yr for SPHY.

Performance

FALN vs. SPHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Fallen Angels USD Bond ETF (FALN) and SPDR Portfolio High Yield Bond ETF (SPHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FALN having a 1.78% return and SPHY slightly lower at 1.76%.

FALN

• 1D: 0.00%
• 1M: 0.57%
• YTD: 1.78%
• 6M: 1.70%
• 1Y: 9.07%
• 3Y*: 9.26%
• 5Y*: 3.89%
• 10Y*: —

SPHY

• 1D: 0.09%
• 1M: 0.33%
• YTD: 1.76%
• 6M: 2.28%
• 1Y: 7.62%
• 3Y*: 9.04%
• 5Y*: 4.48%
• 10Y*: 5.17%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FALN vs. SPHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FALN iShares Fallen Angels USD Bond ETF	1.78%	8.92%	7.68%	13.47%	-13.79%	5.40%	14.85%	17.42%	-4.97%	8.70%
SPHY SPDR Portfolio High Yield Bond ETF	1.76%	8.59%	8.54%	12.81%	-10.57%	5.61%	6.65%	13.16%	-3.35%	7.35%

Correlation

The correlation between FALN and SPHY is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 20, 2016	0.70

Over the past year, FALN and SPHY have become more correlated (0.92) than their long-term average of 0.70, meaning their price movements have been converging.

FALN vs. SPHY - Sectors Allocation Comparison

Sectors	FALN	SPHY
Real Estate	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Financial Services	-	99.9%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FALN vs. SPHY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FALN

FALN Risk / Return Rank: 57
FALN Sharpe Ratio Rank: 59
FALN Sortino Ratio Rank: 61
FALN Omega Ratio Rank: 64
FALN Calmar Ratio Rank: 45
FALN Martin Ratio Rank: 55

SPHY

SPHY Risk / Return Rank: 67
SPHY Sharpe Ratio Rank: 62
SPHY Sortino Ratio Rank: 68
SPHY Omega Ratio Rank: 68
SPHY Calmar Ratio Rank: 63
SPHY Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FALN vs. SPHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and SPDR Portfolio High Yield Bond ETF (SPHY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FALN	SPHY	Difference
Sharpe ratio Return per unit of total volatility	2.01	2.08	-0.08
Sortino ratio Return per unit of downside risk	2.91	3.17	-0.26
Omega ratio Gain probability vs. loss probability	1.39	1.42	-0.03
Calmar ratio Return relative to maximum drawdown	2.28	3.15	-0.87
Martin ratio Return relative to average drawdown	9.55	14.32	-4.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FALN vs. SPHY - Sharpe Ratio Comparison

The current FALN Sharpe Ratio is 2.01, which is comparable to the SPHY Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of FALN and SPHY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FALN	SPHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.01	2.08	-0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.63	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.74	0.64	+0.10

Drawdowns

FALN vs. SPHY - Drawdown Comparison

The maximum FALN drawdown since its inception was -29.22%, which is greater than SPHY's maximum drawdown of -21.97%. Use the drawdown chart below to compare losses from any high point for FALN and SPHY.

Drawdown Indicators

	FALN	SPHY	Difference
Max Drawdown Largest peak-to-trough decline	-29.22%	-21.97%	-7.25%
Max Drawdown (1Y) Largest decline over 1 year	-3.96%	-2.41%	-1.55%
Max Drawdown (3Y) Largest decline over 3 years	-5.92%	-4.85%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-18.78%	-15.29%	-3.49%
Max Drawdown (10Y) Largest decline over 10 years	—	-21.97%	—
Current Drawdown Current decline from peak	-0.04%	-0.01%	-0.03%
Average Drawdown Average peak-to-trough decline	-3.32%	-2.29%	-1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.53%	+0.42%

Volatility

FALN vs. SPHY - Volatility Comparison

iShares Fallen Angels USD Bond ETF (FALN) has a higher volatility of 1.40% compared to SPDR Portfolio High Yield Bond ETF (SPHY) at 1.16%. This indicates that FALN's price experiences larger fluctuations and is considered to be riskier than SPHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FALN	SPHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.40%	1.16%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	3.63%	2.91%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	4.54%	3.67%	+0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.31%	7.17%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.95%	7.89%	+1.06%

FALN vs. SPHY - Expense Ratio Comparison

FALN has a 0.25% expense ratio, which is higher than SPHY's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FALN vs. SPHY - Dividend Comparison

FALN's dividend yield for the trailing twelve months is around 6.45%, less than SPHY's 7.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FALN iShares Fallen Angels USD Bond ETF	6.45%	6.31%	6.24%	5.37%	5.08%	3.40%	5.14%	5.35%	5.97%	6.98%	3.55%	0.00%
SPHY SPDR Portfolio High Yield Bond ETF	7.25%	7.38%	7.80%	7.30%	6.47%	5.13%	5.63%	5.73%	4.09%	4.41%	4.27%	4.29%

Frequently Asked Questions

Can I hold both FALN and SPHY in my portfolio?

With a correlation of 0.92, FALN and SPHY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FALN or SPHY?

FALN has higher volatility (1.40%) compared to SPHY (1.16%). In terms of maximum drawdown, FALN dropped -29.22% vs SPHY's -21.97%.

Which ETF is better, FALN or SPHY?

On 5-year performance, SPHY leads with 4.48% vs 3.89% for FALN. On fees, SPHY is cheaper at 0.10% per year. On volatility, SPHY has been the lower-risk option at 1.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FALN or SPHY?

Over the 5-year period, SPHY has performed better with a 4.48% return vs 3.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FALN or SPHY?

SPHY is cheaper with a 0.10% expense ratio, compared with 0.25% for FALN.

Which ETF pays a higher dividend yield, FALN or SPHY?

SPHY has the higher dividend yield at 7.25%, compared with 6.45% for FALN.

What is the main difference between FALN and SPHY?

FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while SPHY tracks ICE BofAML US High Yield Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.25% for FALN and 0.10% for SPHY.

Which has better risk-adjusted returns?

SPHY currently has the higher Sharpe Ratio (2.08 vs 2.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.