SMHB vs SPY
ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B vs State Street SPDR S&P 500 ETF Trust
Which is better, SMHB or SPY?
Trading-Leveraged Equity against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMHB | SPY |
|---|---|---|
| Expense Ratio | 0.85% | 0.09%Best |
| AUM | $22M | $823.2B |
| Dividend Yield | 19.44% | 0.99% |
| Holdings | - | 1,515 |
| YTD Return | -11.44% | +13.53%Best |
| 1Y Return | -16.12% | +17.47%Best |
| 3Y Return (annualized) | -3.71% | +22.36%Best |
| 5Y Return (annualized) | -10.44% | +13.21%Best |
| Volatility (annualized) | 54.9% | 16.7%Best |
| Max Drawdown | -92.4% | -34.1%Best |
| $10,000 over 5 years | $5,762 | $18,596Best |
| Fund Family | UBS AG | State Street Investment Management |
| Category | Alternative | Equity |
| Style | Trading-Leveraged Equity | Large Cap Blend |
| Inception | Nov 8, 2018 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 9, 2018 to Oct 14, 2026 (7.9 years).
SMHB vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.9 years both funds cover.
SMHB vs SPY Performance
ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B (SMHB) is an ETF from UBS AG and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SMHB returned -16.12% while SPY returned +17.47%. Year to date, SMHB is down 11.44% versus a gain of 13.53% for SPY.
Over three years, SMHB compounded at -3.71% per year against +22.36% for SPY; over five years the annualized figures are -10.44% and +13.21% respectively. Across the full 8-year window we track, SPY has the edge at +14.82% annualized vs -13.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMHB has been the more volatile fund, with annualized monthly volatility of 54.9% compared with 16.7% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -92.4% for SMHB and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMHB charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, SMHB currently yields 19.44% against 0.99% for SPY.
You are not choosing between two funds in isolation.
Whichever of SMHB and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SMHB or SPY?
SMHB has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option, by $76 a year on a $10,000 investment.
Which performed better, SMHB or SPY?
Over the past year SMHB returned -16.12% vs +17.47% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (8 years), SMHB annualized -13.37% vs +14.82% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMHB or SPY?
SMHB has been the more volatile fund at 54.9% annualized versus 16.7% for SPY. Worst drawdown: SMHB -92.4% vs SPY -34.1%.
Should I hold both SMHB and SPY?
SMHB and SPY have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SMHB or SPY?
SMHB yields 19.44% while SPY yields 0.99%, so SMHB currently pays the higher dividend yield.
Is SPY better than SMHB?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.