SHDG vs. SPY

Last updated Jun 23, 2026

SHDG (Soundwatch Hedged Equity ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SHDG is a Options Trading fund actively managed by SoundWatch Capital, while SPY is a S&P 500 fund tracking the S&P 500 Index. SHDG is actively managed, while SPY is passively managed. Over the past 3 years, SHDG returned 12.13%/yr vs 21.27%/yr for SPY. Their correlation of 0.95 suggests significant overlap in exposure. SHDG charges 0.53%/yr vs 0.09%/yr for SPY.

Performance

SHDG vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Soundwatch Hedged Equity ETF (SHDG) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHDG achieves a 1.16% return, which is significantly lower than SPY's 9.74% return.

SHDG

• 1D: 0.02%
• 1M: 0.58%
• YTD: 1.16%
• 6M: 0.76%
• 1Y: 12.02%
• 3Y*: 12.13%
• 5Y*: —
• 10Y*: —

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

SHDG vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SHDG Soundwatch Hedged Equity ETF	1.16%	11.46%	19.66%	17.84%	2.55%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	2.64%

Correlation

The correlation between SHDG and SPY is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Oct 24, 2022	0.95

The correlation between SHDG and SPY has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.

Return for Risk

SHDG vs. SPY — Risk / Return Rank

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

SHDG

SHDG Risk / Return Rank: 44
SHDG Sharpe Ratio Rank: 46
SHDG Sortino Ratio Rank: 44
SHDG Omega Ratio Rank: 50
SHDG Calmar Ratio Rank: 38
SHDG Martin Ratio Rank: 43

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY 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.

SHDG vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Soundwatch Hedged Equity ETF (SHDG) 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.

	SHDG	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.57	2.16	-0.59
Sortino ratio: Return per unit of downside risk	2.16	2.91	-0.75
Omega ratio: Gain probability vs. loss probability	1.31	1.39	-0.09
Calmar ratio: Return relative to maximum drawdown	1.82	3.01	-1.19
Martin ratio: Return relative to average drawdown	6.74	13.54	-6.80

SHDG vs. SPY - Sharpe Ratio Comparison

The current SHDG Sharpe Ratio is 1.57, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of SHDG and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SHDG vs. SPY - Drawdown Comparison

The maximum SHDG drawdown since its inception was -15.82%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SHDG and SPY.

Drawdown Indicators

	SHDG	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-15.82%	-55.19%	+39.37%
Max Drawdown (1Y) Largest decline over 1 year	-6.62%	-8.88%	+2.26%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-18.76%	+2.94%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.48%	-1.75%	+1.27%
Average Drawdown Average peak-to-trough decline	-1.72%	-9.04%	+7.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.97%	-0.18%

Volatility

SHDG vs. SPY - Volatility Comparison

The current volatility for Soundwatch Hedged Equity ETF (SHDG) is 0.64%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.64%. This indicates that SHDG 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.

Volatility by Period

	SHDG	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	4.64%	-4.00%
Volatility (6M) Calculated over the trailing 6-month period	5.40%	9.75%	-4.35%
Volatility (1Y) Calculated over the trailing 1-year period	7.70%	12.43%	-4.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.91%	17.14%	-6.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.91%	17.99%	-7.08%

SHDG vs. SPY - Expense Ratio Comparison

SHDG has a 0.53% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SHDG vs. SPY - Dividend Comparison

SHDG's dividend yield for the trailing twelve months is around 0.49%, less than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHDG Soundwatch Hedged Equity ETF	0.49%	0.49%	0.62%	1.24%	0.90%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.01%	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

Can I hold both SHDG and SPY in my portfolio?

With a correlation of 0.91, SHDG and SPY 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, SHDG or SPY?

SPY has higher volatility (4.64%) compared to SHDG (0.64%). In terms of maximum drawdown, SHDG dropped -15.82% vs SPY's -55.19%.

Which ETF is better, SHDG or SPY?

On 3-year performance, SPY leads with 21.27% vs 12.13% for SHDG. On fees, SPY is cheaper at 0.09% per year. On volatility, SHDG has been the lower-risk option at 0.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHDG or SPY?

Over the 3-year period, SPY has performed better with a 21.27% return vs 12.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHDG or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.53% for SHDG.

Which ETF pays a higher dividend yield, SHDG or SPY?

SPY has the higher dividend yield at 1.01%, compared with 0.49% for SHDG.

What is the main difference between SHDG and SPY?

SHDG is categorized as Options Trading, while SPY is S&P 500. They also come from different issuers: SoundWatch Capital and State Street. Their fees differ too: 0.53% for SHDG and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.16 vs 1.57), 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.