SPY vs VEA
SPY vs VEA
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE Developed Markets ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3009 holdings.
Side-by-Side Comparison
| Metric | SPY | VEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $230.9B | |
| Dividend Yield | 1.01% | 2.57% | |
| Holdings | 505 | 3,918 | |
| YTD Return | +13.50% | +15.07% | |
| 1Y Return | +23.56% | +30.82% | |
| 3Y Return (annualized) | +21.17% | +19.48% | |
| 5Y Return (annualized) | +13.46% | +10.05% | |
| Volatility (annualized) | 15.3% | 17.8% | |
| Max Drawdown | -56.5% | -62.9% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jul 20, 2007 |
SPY vs VEA Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US). Over the past year SPY returned +23.56% while VEA returned +30.82%. Year to date, SPY is up 13.50% versus a gain of 15.07% for VEA.
Over three years, SPY compounded at +21.17% per year against +19.48% for VEA; over five years the annualized figures are +13.46% and +10.05% respectively. Across the full 19-year window we track, SPY has the edge at +8.85% annualized vs +3.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% compared with 15.3% 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 -56.5% for SPY and -62.9% for VEA. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VEA charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.57% for VEA.
Holdings Overlap
SPY and VEA share 4 holdings out of 3508 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, SPY or VEA?
SPY has an expense ratio of 0.09% while VEA charges 0.03%. VEA is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VEA?
Over the past year SPY returned +23.56% vs +30.82% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), SPY annualized +8.85% vs +3.09% for VEA. Past performance does not guarantee future results.
Which is riskier, SPY or VEA?
VEA has been the more volatile fund at 17.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VEA -62.9%.
Should I hold both SPY and VEA?
SPY and VEA have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VEA?
SPY and VEA share 4 common holdings with a 0.2% weight overlap. Combined, they hold 3508 unique securities.
Which pays a higher dividend, SPY or VEA?
SPY yields 1.01% while VEA yields 2.57%, so VEA currently pays the higher dividend yield.
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