FLHY vs. SPY
FLHY (Franklin Liberty High Yield Corporate ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - FLHY is a High Yield Bonds fund actively managed by Franklin Templeton, while SPY is a S&P 500 fund tracking the S&P 500 Index. FLHY is actively managed, while SPY is passively managed. Over the past 5 years, FLHY returned 4.61%/yr vs 13.05%/yr for SPY. A 0.68 correlation means they provide meaningful diversification when combined. FLHY charges 0.40%/yr vs 0.09%/yr for SPY.
Performance
FLHY vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, FLHY achieves a 1.96% return, which is significantly lower than SPY's 8.15% return.
FLHY
- 1D
- -0.08%
- 1M
- 0.44%
- YTD
- 1.96%
- 6M
- 2.31%
- 1Y
- 7.09%
- 3Y*
- 9.52%
- 5Y*
- 4.61%
- 10Y*
- —
SPY
- 1D
- -1.45%
- 1M
- -1.36%
- YTD
- 8.15%
- 6M
- 7.20%
- 1Y
- 23.59%
- 3Y*
- 20.68%
- 5Y*
- 13.05%
- 10Y*
- 15.53%
FLHY vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
FLHY Franklin Liberty High Yield Corporate ETF | 1.96% | 9.26% | 8.70% | 13.40% | -10.45% | 4.27% | 7.77% | 16.39% | -1.59% |
SPY State Street SPDR S&P 500 ETF | 8.15% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -6.38% |
Correlation
The correlation between FLHY and SPY is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Jun 1, 2018 | 0.68 |
The correlation between FLHY and SPY has been stable across timeframes, ranging from 0.65 to 0.75 - a consistent structural relationship.
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Return for Risk
FLHY vs. SPY — Risk / Return Rank
FLHY
SPY
FLHY vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty High Yield Corporate ETF (FLHY) and State Street SPDR S&P 500 ETF (SPY). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FLHY | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.34 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.92 | 2.67 | +0.26 |
| Martin ratioReturn relative to average drawdown | 13.70 | 11.92 | +1.78 |
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Drawdowns
FLHY vs. SPY - Drawdown Comparison
The maximum FLHY drawdown since its inception was -22.58%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for FLHY and SPY.
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Drawdown Indicators
| FLHY | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.58% | -55.19% | +32.61% |
Max Drawdown (1Y)Largest decline over 1 year | -2.43% | -8.88% | +6.45% |
Max Drawdown (3Y)Largest decline over 3 years | -4.49% | -18.76% | +14.27% |
Max Drawdown (5Y)Largest decline over 5 years | -15.19% | -24.50% | +9.31% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.72% | — |
Current DrawdownCurrent decline from peak | -0.19% | -3.17% | +2.98% |
Average DrawdownAverage peak-to-trough decline | -2.53% | -9.04% | +6.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.52% | 1.98% | -1.46% |
Volatility
FLHY vs. SPY - Volatility Comparison
The current volatility for Franklin Liberty High Yield Corporate ETF (FLHY) is 0.98%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.87%. This indicates that FLHY experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FLHY | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 4.87% | -3.89% |
Volatility (6M)Calculated over the trailing 6-month period | 3.04% | 9.85% | -6.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.85% | 12.50% | -8.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.95% | 17.15% | -10.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.09% | 17.95% | -9.86% |
FLHY vs. SPY - Expense Ratio Comparison
FLHY has a 0.40% expense ratio, which is higher than SPY's 0.09% expense ratio.
Dividends
FLHY vs. SPY - Dividend Comparison
FLHY's dividend yield for the trailing twelve months is around 6.46%, more than SPY's 1.03% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FLHY Franklin Liberty High Yield Corporate ETF | 6.46% | 6.53% | 6.51% | 6.26% | 6.54% | 5.76% | 5.47% | 5.61% | 4.27% | 0.00% | 0.00% | 0.00% |
SPY State Street SPDR S&P 500 ETF | 1.03% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
Frequently Asked Questions
FLHY and SPY have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (4.87%) compared to FLHY (0.98%). In terms of maximum drawdown, FLHY dropped -22.58% vs SPY's -55.19%.
On 5-year performance, SPY leads with 13.05% vs 4.61% for FLHY. On fees, SPY is cheaper at 0.09% per year. On volatility, FLHY has been the lower-risk option at 0.98%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, SPY has performed better with a 13.05% return vs 4.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.40% for FLHY.
FLHY has the higher dividend yield at 6.46%, compared with 1.03% for SPY.
FLHY is categorized as High Yield Bonds, while SPY is S&P 500. They also come from different issuers: Franklin Templeton and State Street. Their fees differ too: 0.40% for FLHY and 0.09% for SPY.
SPY currently has the higher Sharpe Ratio (1.90 vs 1.85), 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.
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