Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both SHYM and SPHD fall intoTier 2: Yield Plus. This suggests they share a similar risk profile and volatility expectation.
| Metric | SHYM | SPHD |
|---|---|---|
| Total Return (1Y) | 1.72% | 2.51% |
| NAV Change (1Y) | -3.58% | -2.41% |
| Max Drawdown | -8.75% | -12.43% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
SHYM (BlackRock ETF Trust II - iShares Short Duration High Yield Muni Active ETF) is a conservative dividend growth fund managed by iShares. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
SPHD (Invesco S&P 500 High Dividend Low Vol) is a conservative dividend growth fund managed by Invesco. It focuses on generating income through strategic holdings. With $3.1B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of SHYM vs SPHD, the choice depends on your specific goal. SHYM wins for Immediate Income with a 5.30% yield. However, SPHD is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
SHYM
Annual Yield: 5.30%
$442/mo
($5,299/year)
Frequency: monthly
SPHD
Annual Yield: 4.92%
$410/mo
($4,916/year)
Frequency: monthly
Income Gap: SHYM generates $382/year more than SPHD on the same $100k investment.
Over 20 years, that's $7,647 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. SPHD has delivered a superior Total Return of 2.51% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
SHYM (More Resilient)
Max Drawdown: -8.75%
-$8,750
Worst unrealized loss
SPHD (More Volatile)
Max Drawdown: -12.43%
-$12,430
Worst unrealized loss
Protection Value: SHYM saved investors $3,680 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: SHYM demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.