SPY vs VGI

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYVGIWinner
Expense Ratio0.09%1.74%
AUM$789.1B$88M
Dividend Yield1.01%11.98%
Holdings505646
YTD Return+13.28%+0.24%
1Y Return+23.94%+4.50%
3Y Return (annualized)+21.07%+11.21%
5Y Return (annualized)+13.27%+1.90%
Volatility (annualized)15.3%14.1%
Max Drawdown-56.5%-63.3%
Fund FamilyState Street Investment ManagementVirtus Investment Partners
CategoryEquityFixed Income
InceptionJan 22, 1993Feb 23, 2012

SPY vs VGI Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners. Over the past year SPY returned +23.94% while VGI returned +4.50%. Year to date, SPY is up 13.28% versus a gain of 0.24% for VGI.

Over three years, SPY compounded at +21.07% per year against +11.21% for VGI; over five years the annualized figures are +13.27% and +1.90% respectively. Across the full 14-year window we track, SPY has the edge at +8.84% annualized vs -2.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.1% for VGI. 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 -63.3% for VGI. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while VGI charges 1.74%. On a $10,000 position that is $9 vs $174 annually, a gap of $165 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 11.98% for VGI.

Holdings Overlap

0.0%overlap

SPY and VGI share 0 holdings out of 937 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, SPY or VGI?

SPY has an expense ratio of 0.09% while VGI charges 1.74%. SPY is the cheaper option. On a $10,000 investment, that is $165 per year of difference.

Which performed better, SPY or VGI?

Over the past year SPY returned +23.94% vs +4.50% for VGI, so SPY leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +8.84% vs -2.47% for VGI. Past performance does not guarantee future results.

Which is riskier, SPY or VGI?

SPY has been the more volatile fund at 15.3% annualized versus 14.1% for VGI. Worst drawdown: SPY -56.5% vs VGI -63.3%.

Should I hold both SPY and VGI?

SPY and VGI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and VGI?

SPY and VGI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 937 unique securities.

Which pays a higher dividend, SPY or VGI?

SPY yields 1.01% while VGI yields 11.98%, so VGI currently pays the higher dividend yield.

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