SPY vs VGIT
SPY vs VGIT
State Street SPDR S&P 500 ETF Trust vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $42.1B | |
| Dividend Yield | 1.01% | 3.84% | |
| Holdings | 505 | 106 | |
| YTD Return | +13.28% | -0.55% | |
| 1Y Return | +23.94% | +1.34% | |
| 3Y Return (annualized) | +21.07% | +3.73% | |
| 5Y Return (annualized) | +13.27% | -0.19% | |
| Volatility (annualized) | 15.3% | 4.3% | |
| Max Drawdown | -56.5% | -17.2% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
SPY vs VGIT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year SPY returned +23.94% while VGIT returned +1.34%. Year to date, SPY is up 13.28% versus a loss of 0.55% for VGIT.
Over three years, SPY compounded at +21.07% per year against +3.73% for VGIT; over five years the annualized figures are +13.27% and -0.19% respectively. Across the full 17-year window we track, SPY has the edge at +8.84% annualized vs +0.76%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VGIT 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 3.84% for VGIT.
Holdings Overlap
SPY and VGIT share 0 holdings out of 587 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 VGIT?
SPY has an expense ratio of 0.09% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VGIT?
Over the past year SPY returned +23.94% vs +1.34% for VGIT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.84% vs +0.76% for VGIT. Past performance does not guarantee future results.
Which is riskier, SPY or VGIT?
SPY has been the more volatile fund at 15.3% annualized versus 4.3% for VGIT. Worst drawdown: SPY -56.5% vs VGIT -17.2%.
Should I hold both SPY and VGIT?
SPY and VGIT have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGIT?
SPY and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, SPY or VGIT?
SPY yields 1.01% while VGIT yields 3.84%, so VGIT currently pays the higher dividend yield.
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