SPMB vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricSPMBVTIWinner
Expense Ratio0.04%0.03%
AUM$7.0B$663.5B
Dividend Yield4.05%1.07%
Holdings2,6613,543
YTD Return-0.24%+10.14%
1Y Return+4.10%+19.82%
3Y Return (annualized)+4.32%+18.94%
5Y Return (annualized)-0.01%+11.79%
Volatility (annualized)4.5%15.4%
Max Drawdown-22.8%-56.6%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionJan 15, 2009May 24, 2001

SPMB vs VTI Performance

State Street SPDR Portfolio Mortgage Backed Bond ETF (SPMB) is a ETF from State Street Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SPMB returned +4.10% while VTI returned +19.82%. Year to date, SPMB is down 0.24% versus a gain of 10.14% for VTI.

Over three years, SPMB compounded at +4.32% per year against +18.94% for VTI; over five years the annualized figures are -0.01% and +11.79% respectively. Across the full 18-year window we track, VTI has the edge at +7.99% annualized vs +0.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 4.5% for SPMB. 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 -22.8% for SPMB and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPMB charges 0.04% per year while VTI charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, SPMB currently yields 4.05% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

SPMB and VTI share 0 holdings out of 5339 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, SPMB or VTI?

SPMB has an expense ratio of 0.04% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, SPMB or VTI?

Over the past year SPMB returned +4.10% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (18 years), SPMB annualized +0.08% vs +7.99% for VTI. Past performance does not guarantee future results.

Which is riskier, SPMB or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 4.5% for SPMB. Worst drawdown: SPMB -22.8% vs VTI -56.6%.

Should I hold both SPMB and VTI?

SPMB and VTI have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPMB and VTI?

SPMB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5339 unique securities.

Which pays a higher dividend, SPMB or VTI?

SPMB yields 4.05% while VTI yields 1.07%, so SPMB currently pays the higher dividend yield.

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