VBR vs. SPHY

Last updated Jun 9, 2026

VBR (Vanguard Small-Cap Value ETF) and SPHY (SPDR Portfolio High Yield Bond ETF) are both exchange-traded funds - VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index, while SPHY is a High Yield Bonds fund tracking the ICE BofA US High Yield Index. Both are passively managed. Over the past 10 years, VBR returned 10.50%/yr vs 5.03%/yr for SPHY. At a 0.42 correlation, their price movements are largely independent. Both charge a 0.05% expense ratio.

Performance

VBR vs. SPHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value ETF (VBR) and SPDR Portfolio High Yield Bond ETF (SPHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBR achieves a 11.45% return, which is significantly higher than SPHY's 1.32% return. Over the past 10 years, VBR has outperformed SPHY with an annualized return of 10.50%, while SPHY has yielded a comparatively lower 5.03% annualized return.

VBR

• 1D: 0.16%
• 1M: 0.48%
• YTD: 11.45%
• 6M: 12.14%
• 1Y: 24.85%
• 3Y*: 15.60%
• 5Y*: 7.78%
• 10Y*: 10.50%

SPHY

• 1D: 0.09%
• 1M: -0.18%
• YTD: 1.32%
• 6M: 1.93%
• 1Y: 6.98%
• 3Y*: 8.78%
• 5Y*: 4.29%
• 10Y*: 5.03%

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

VBR vs. SPHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBR Vanguard Small-Cap Value ETF	11.45%	9.09%	12.40%	16.00%	-9.38%	28.08%	5.90%	22.78%	-12.28%	11.81%
SPHY SPDR Portfolio High Yield Bond ETF	1.32%	8.59%	8.54%	12.81%	-10.57%	5.61%	6.65%	13.16%	-3.35%	7.35%

Correlation

The correlation between VBR and SPHY is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Jun 20, 2012	0.42

Over the past year, VBR and SPHY have become more correlated (0.69) than their long-term average of 0.42, meaning their price movements have been converging.

VBR vs. SPHY - Sectors Allocation Comparison

Sectors	VBR	SPHY
Industrials	18.1%	-
Financial Services	17.6%	99.9%
Consumer Cyclical	12.4%	-
Technology	10.6%	-
Real Estate	10.1%	-
Healthcare	7.9%	-
Basic Materials	6.3%	-
Energy	5.2%	0.1%
Utilities	4.8%	-
Consumer Defensive	4.0%	-
Communication Services	2.5%	-

Return for Risk

VBR vs. SPHY — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 57
VBR Sharpe Ratio Rank: 53
VBR Sortino Ratio Rank: 56
VBR Omega Ratio Rank: 51
VBR Calmar Ratio Rank: 62
VBR Martin Ratio Rank: 61

SPHY

SPHY Risk / Return Rank: 69
SPHY Sharpe Ratio Rank: 63
SPHY Sortino Ratio Rank: 70
SPHY Omega Ratio Rank: 70
SPHY Calmar Ratio Rank: 64
SPHY Martin Ratio Rank: 76

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.

VBR vs. SPHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) 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.

	VBR	SPHY	Difference
Sharpe ratio: Return per unit of total volatility	1.65	1.90	-0.25
Sortino ratio: Return per unit of downside risk	2.43	2.88	-0.44
Omega ratio: Gain probability vs. loss probability	1.29	1.38	-0.09
Calmar ratio: Return relative to maximum drawdown	2.82	2.90	-0.09
Martin ratio: Return relative to average drawdown	9.94	13.14	-3.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBR vs. SPHY - Sharpe Ratio Comparison

The current VBR Sharpe Ratio is 1.65, which is comparable to the SPHY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of VBR 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

	VBR	SPHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	1.90	-0.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.40	0.60	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.64	-0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.63	-0.22

Drawdowns

VBR vs. SPHY - Drawdown Comparison

The maximum VBR drawdown since its inception was -61.98%, which is greater than SPHY's maximum drawdown of -21.97%. Use the drawdown chart below to compare losses from any high point for VBR and SPHY.

Drawdown Indicators

	VBR	SPHY	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	-21.97%	-40.01%
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	-2.41%	-6.44%
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	-4.85%	-19.34%
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	-15.29%	-8.90%
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	-21.97%	-23.31%
Current Drawdown Current decline from peak	-0.95%	-0.44%	-0.51%
Average Drawdown Average peak-to-trough decline	-8.26%	-2.29%	-5.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.51%	0.53%	+1.98%

Volatility

VBR vs. SPHY - Volatility Comparison

Vanguard Small-Cap Value ETF (VBR) has a higher volatility of 3.67% compared to SPDR Portfolio High Yield Bond ETF (SPHY) at 1.10%. This indicates that VBR'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

	VBR	SPHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.67%	1.10%	+2.57%
Volatility (6M) Calculated over the trailing 6-month period	10.49%	2.94%	+7.55%
Volatility (1Y) Calculated over the trailing 1-year period	15.16%	3.69%	+11.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.77%	7.18%	+12.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.74%	7.88%	+13.86%

VBR vs. SPHY - Expense Ratio Comparison

Both VBR and SPHY have an expense ratio of 0.05%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VBR vs. SPHY - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.76%, less than SPHY's 7.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPHY SPDR Portfolio High Yield Bond ETF	7.28%	7.38%	7.80%	7.30%	6.47%	5.13%	5.63%	5.73%	4.09%	4.41%	4.27%	4.29%
VBR Vanguard Small-Cap Value ETF	1.76%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VBR and SPHY in my portfolio?

VBR and SPHY have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBR or SPHY?

VBR has higher volatility (3.67%) compared to SPHY (1.10%). In terms of maximum drawdown, VBR dropped -61.98% vs SPHY's -21.97%.

Which ETF is better, VBR or SPHY?

On 10-year performance, VBR leads with 10.50% vs 5.03% for SPHY. Both ETFs have the same 0.05% expense ratio. On volatility, SPHY has been the lower-risk option at 1.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBR or SPHY?

Over the 10-year period, VBR has performed better with a 10.50% return vs 5.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBR or SPHY?

VBR and SPHY have the same expense ratio: 0.05% per year.

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

SPHY has the higher dividend yield at 7.28%, compared with 1.76% for VBR.

What is the main difference between VBR and SPHY?

VBR is categorized as Small Cap Value Equities, while SPHY is High Yield Bonds. VBR tracks CRSP US Small Cap Value Index, while SPHY tracks ICE BofA US High Yield Index. They also come from different issuers: Vanguard and State Street.

Which has better risk-adjusted returns?

SPHY currently has the higher Sharpe Ratio (1.90 vs 1.65), 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.