SPHY vs. VGSH
SPHY (SPDR Portfolio High Yield Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF) are both exchange-traded funds - SPHY is a High Yield Bonds fund tracking the ICE BofA US High Yield Index, while VGSH is a Government Bonds fund tracking the Bloomberg U.S. Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, SPHY returned 5.21%/yr vs 1.73%/yr for VGSH. At a 0.14 correlation, their price movements are largely independent. SPHY charges 0.05%/yr vs 0.03%/yr for VGSH.
Performance
SPHY vs. VGSH - Performance Comparison
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Returns By Period
In the year-to-date period, SPHY achieves a 1.85% return, which is significantly higher than VGSH's 0.57% return. Over the past 10 years, SPHY has outperformed VGSH with an annualized return of 5.21%, while VGSH has yielded a comparatively lower 1.73% annualized return.
SPHY
- 1D
- 0.04%
- 1M
- 0.63%
- YTD
- 1.85%
- 6M
- 2.41%
- 1Y
- 7.07%
- 3Y*
- 8.90%
- 5Y*
- 4.36%
- 10Y*
- 5.21%
VGSH
- 1D
- -0.03%
- 1M
- 0.13%
- YTD
- 0.57%
- 6M
- 0.83%
- 1Y
- 3.31%
- 3Y*
- 4.25%
- 5Y*
- 1.83%
- 10Y*
- 1.73%
SPHY vs. VGSH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SPHY SPDR Portfolio High Yield Bond ETF | 1.85% | 8.59% | 8.54% | 12.81% | -10.57% | 5.61% | 6.65% | 13.16% | -3.35% | 7.35% |
VGSH Vanguard Short-Term Treasury ETF | 0.57% | 5.07% | 4.00% | 4.31% | -3.86% | -0.60% | 3.04% | 3.52% | 1.55% | 0.04% |
Correlation
The correlation between SPHY and VGSH is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.19 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2012 | 0.14 |
Over the past year, SPHY and VGSH have become more correlated (0.45) than their long-term average of 0.14, meaning their price movements have been converging.
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Return for Risk
SPHY vs. VGSH — Risk / Return Rank
SPHY
VGSH
SPHY vs. VGSH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio High Yield Bond ETF (SPHY) and Vanguard Short-Term Treasury ETF (VGSH). 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.
| SPHY | VGSH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.70 | ||
| Sortino ratioReturn per unit of downside risk | -1.39 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.55 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.94 | 3.76 | -0.81 |
| Martin ratioReturn relative to average drawdown | 13.29 | 14.67 | -1.38 |
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Drawdowns
SPHY vs. VGSH - Drawdown Comparison
The maximum SPHY drawdown since its inception was -21.97%, which is greater than VGSH's maximum drawdown of -5.70%. Use the drawdown chart below to compare losses from any high point for SPHY and VGSH.
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Drawdown Indicators
| SPHY | VGSH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -21.97% | -5.70% | -16.27% |
Max Drawdown (1Y)Largest decline over 1 year | -2.41% | -0.88% | -1.53% |
Max Drawdown (3Y)Largest decline over 3 years | -4.85% | -0.97% | -3.88% |
Max Drawdown (5Y)Largest decline over 5 years | -15.29% | -5.66% | -9.63% |
Max Drawdown (10Y)Largest decline over 10 years | -21.97% | -5.70% | -16.27% |
Current DrawdownCurrent decline from peak | 0.00% | -0.21% | +0.21% |
Average DrawdownAverage peak-to-trough decline | -2.29% | -0.60% | -1.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.23% | +0.30% |
Volatility
SPHY vs. VGSH - Volatility Comparison
SPDR Portfolio High Yield Bond ETF (SPHY) has a higher volatility of 1.16% compared to Vanguard Short-Term Treasury ETF (VGSH) at 0.37%. This indicates that SPHY's price experiences larger fluctuations and is considered to be riskier than VGSH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SPHY | VGSH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.16% | 0.37% | +0.79% |
Volatility (6M)Calculated over the trailing 6-month period | 2.95% | 0.90% | +2.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.72% | 1.28% | +2.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.18% | 1.97% | +5.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.87% | 1.58% | +6.29% |
SPHY vs. VGSH - Expense Ratio Comparison
SPHY has a 0.05% expense ratio, which is higher than VGSH's 0.03% 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
SPHY vs. VGSH - Dividend Comparison
SPHY's dividend yield for the trailing twelve months is around 7.24%, more than VGSH's 3.87% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPHY SPDR Portfolio High Yield Bond ETF | 7.24% | 7.38% | 7.80% | 7.30% | 6.47% | 5.13% | 5.63% | 5.73% | 4.09% | 4.41% | 4.27% | 4.29% |
VGSH Vanguard Short-Term Treasury ETF | 3.87% | 4.00% | 4.18% | 3.31% | 1.15% | 0.66% | 1.74% | 2.28% | 1.79% | 1.10% | 0.84% | 0.69% |
Frequently Asked Questions
SPHY and VGSH have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPHY has higher volatility (1.16%) compared to VGSH (0.37%). In terms of maximum drawdown, SPHY dropped -21.97% vs VGSH's -5.70%.
On 10-year performance, SPHY leads with 5.21% vs 1.73% for VGSH. On fees, VGSH is cheaper at 0.03% per year. On volatility, VGSH has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPHY has performed better with a 5.21% return vs 1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGSH is cheaper with a 0.03% expense ratio, compared with 0.05% for SPHY.
SPHY has the higher dividend yield at 7.24%, compared with 3.87% for VGSH.
SPHY is categorized as High Yield Bonds, while VGSH is Government Bonds. SPHY tracks ICE BofA US High Yield Index, while VGSH tracks Bloomberg U.S. Treasury 1-3 Year Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.05% for SPHY and 0.03% for VGSH.
VGSH currently has the higher Sharpe Ratio (2.61 vs 1.91), 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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