At a glance
SPHY charges 0.05% a year, below the 0.53% average of the 7 funds most like it (the cheapest of 8). It has $11.33B in assets, the 3rd largest of that group; it paid 7.41% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.8% with distributions reinvested, 3rd of those 8 funds; over three years it returned +8.9% a year. At its worst it fell 15.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low. Its ten largest positions make up 3.1% of the fund, out of 1,948 in all.
The short version
SPDR Portfolio High Yield Bond ETF (SPHY) is a State Street index fund. It holds a sample of the junk (below-investment-grade) corporate bonds in the ICE BofA US High Yield Index. What sets it apart is cost: a 0.05% expense ratio, against a 0.56% average for similar funds. It pays income monthly, with a trailing 12-month yield of 7.41% as of October 27, 2026, but its bonds carry real default risk.
Price history
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SPHY +1.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SPHY official prospectus, to Dec 31, 2025 | — | +8.52% | — | +4.73% | +5.67% | — |
| SPHY price data to Oct 27, 2026 | +1.1% | +1.8% | +8.9% | +4.0% | — | +5.5% |
- Over the year to Oct 27, 2026, SPHY returned +1.8%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +4.0%.
- Its worst full calendar year was 2022 (-10.5%); its best was 2023 (+12.8%).
- The deepest fall in its price history was 15.2% (Dec 28, 2021 to Sep 27, 2022), recovered by Dec 14, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.1% | — |
| 2025 | +8.7% | +8.52% |
| 2024 | +8.5% | +8.25% |
| 2023 | +12.8% | +13.54% |
| 2022 | -10.5% | -10.76% |
| 2021 | +5.6% | +5.82% |
| 2020 | — | +6.53% |
| 2019 | — | +13.08% |
| 2018 | — | -2.79% |
| 2017 | — | +6.56% |
| 2016 | — | +10.41% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.2% over that stretch · deepest drop along the way 15%, back to its old high 14.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.2600 | |
| 2025 | $1.7600 | -3.3% |
| 2024 | $1.8200 | +7.1% |
| 2023 | $1.7000 | +15.6% |
| 2022 | $1.4700 | +7.3% |
| 2021 | $1.3700 |
What's inside
As of Jun 30, 2026, the fund held 1,948 securities; the ten largest made up 3.13% of assets, and 4.01% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| 1261229 BC LTD Bonds and notes | 0.42% | |
| ECHOSTAR CORP Bonds and notes | 0.40% | |
| MERIDIAN ARC HOLDCO LLC Bonds and notes | 0.40% | |
| PR RNO PROPERTY OWNER 1 Bonds and notes | 0.30% | |
| CLOUD SOFTWARE GRP INC Bonds and notes | 0.28% | |
| QUIKRETE HOLDINGS INC Bonds and notes | 0.28% | |
| CLOUD SOFTWARE GRP INC Bonds and notes | 0.27% | |
| SV RNO PROPERTY OWNER 1 Bonds and notes | 0.27% | |
| AMERICAN AIRLINES/AADVAN Bonds and notes | 0.25% | |
| ASURION LLC/ASURION CO Bonds and notes | 0.25% | |
| CORE SCIENTIFIC FINANCE Bonds and notes | 0.24% | |
| CRC INSURANCE GROUP LLC Bonds and notes | 0.24% | |
| WULF COMPUTE LLC Bonds and notes | 0.24% | |
| VENTURE GLOBAL LNG INC Bonds and notes | 0.24% | |
| TRANSDIGM INC Bonds and notes | 0.22% |
By country
United States 83.05%Canada 4.33%United Kingdom 1.74%XX 1.4%Luxembourg 1.25%By issuer
Companies 95.47%Other 2.83%The bonds mature in 5.4 years on average (weighted by size), with an average coupon of 6.73%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.20B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.68%, +0.49%, +0.27%.
How it works
SPHY aims to track the ICE BofA US High Yield Index, which is run by ICE Data Indices. The index covers US dollar bonds that companies sell publicly in the US and that are rated below investment grade, based on an average of Moody's, Fitch and S&P ratings. To qualify, a bond needs a fixed coupon (a set interest rate) and at least $250 million outstanding. It also needs at least 18 months to maturity when issued and at least one year left at each rebalance. Bonds are weighted by market value, and the index rebalances on the last calendar day of each month. It had about 1,890 securities as of July 31, 2026.
The adviser, SSGA Funds Management, uses sampling. Instead of buying every bond in the index, it can buy a subset that together behaves like the index. At least 80% of assets must be in index securities. As of June 30, 2026, the fund held 1,948 issues. The 10 largest made up just 3.13% of assets, and cash was about 4%. Portfolio turnover was 71%.
The fund may use credit default swaps (contracts that pay out if a borrower defaults), but it reported no derivatives as of June 30, 2026. Bond prices move opposite to interest rates. The fund's average maturity was 5.4 years.
What it really costs
- SPHY charges 0.05% a year, versus an average of 0.53% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $5 in the first year and $64 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SPHY | $5 | $16 | $28 | $64 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
SPHY's main contribution is high monthly interest income from junk bonds at a very low fee, not protection when markets fall.
SPHY could add monthly income: its trailing 12-month yield was 7.41% as of October 27, 2026. Its expense ratio is 0.05%, about $64 over 10 years on $10,000 in the SEC's standard example. The trade-off is credit risk. The fund launched in 2012, so it has no record from the 2008 crisis. It lost 13.09% in the quarter ending March 31, 2020, and 10.76% in 2022, its worst calendar year. Its deepest drop in price data since mid-2020 was 15.2%, and recovering took about 15 months, until December 2023. Someone selling shares for spending money during a stretch like that would lock in losses, and junk bonds often fall alongside stocks rather than cushion them. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-conscious investors who want broad junk-bond exposure for 0.05% a year, against 0.49% for HYG and 0.40% for JNK.
- Retirees who want monthly income and accept credit risk; the trailing yield was 7.41% as of October 27, 2026.
- Investors who want wide spread: 1,948 holdings, with the 10 largest only 3.13% of assets as of June 30, 2026.
Look elsewhere if
- Those who need a cushion when stocks fall: SPHY lost 13.09% in the first quarter of 2020 and 10.76% in 2022.
- Investors who can't wait out slumps; its 15.2% drop starting in December 2021 took about 15 months to recover.
- Investors who want investment-grade quality: every bond in the index is rated junk, and consumer cyclical companies make up a large share.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SPHY this fund | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| HYLS First Trust Tactical High Yield ETF | 5.2 yrs | 1.05% | $1.62B | +1.6% | +8.3% |
| HYDB iShares High Yield Systematic Bond ETF | 5.2 yrs | 0.35% | $1.61B | +0.9% | +8.7% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
Questions investors ask
Does SPHY pay monthly dividends?
Yes. SPHY pays distributions monthly. Over the 12 months to October 27, 2026, it paid $1.68 per share, a trailing yield of 7.41%. The income comes from interest on its junk bonds, whose average coupon was 6.73% as of June 30, 2026. Payments aren't fixed. Income can drop if interest rates fall, or if issuers call (repay early) their bonds and the fund has to reinvest at lower rates.
What's the difference between SPHY and USHY?
Very little. Both are low-cost index funds of US high yield corporate bonds with an average maturity of 5.4 years, and their portfolios scored 99% similar on maturity and issuer mix. SPHY charges 0.05% a year; iShares' USHY charges 0.08%. Both returned 8.9% a year over three years. Over one year, SPHY returned 1.8% (as of October 27, 2026) and USHY 2.0% (as of October 29, 2026). USHY is larger, at about $28.6 billion in net assets.
Is SPHY safe?
Not in the way Treasuries or an insured bank account are. SPHY holds bonds rated below investment grade, which carry a much greater risk of default, and it isn't FDIC insured. It lost 13.09% in the quarter ending March 31, 2020, and 10.76% in 2022. Spreading money across 1,948 holdings limits the damage from any single default. A recession that hits many borrowers at once, especially consumer cyclical companies, can still hurt the whole fund.
What are SPHY's top holdings?
Its largest positions are very small. As of June 30, 2026, the top holdings were bonds from 1261229 BC Ltd (0.42% of assets), EchoStar (0.40%) and Meridian Arc Holdco (0.40%). Next came PR RNO Property Owner 1, Cloud Software Group and Quikrete, along with names like American Airlines/AAdvantage, Venture Global LNG and TransDigm. The 10 largest made up 3.13% of assets. About 83% was in US issuers and roughly 4% in cash.
What is SPHY's 10-year return?
According to its prospectus, SPHY returned an average of 5.67% a year over the 10 years to December 31, 2025. Over five years it returned 4.73% a year, and it gained 8.52% in 2025. Calendar-year results ranged from a 13.54% gain in 2023 to a 10.76% loss in 2022. 2018 was also negative, at -2.79%. Most of its return has come from interest income rather than price gains.