SPY vs VGLT

Quick Verdict

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

Lower Fees: VGLTHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYVGLTWinner
Expense Ratio0.09%0.03%
AUM$789.1B$10.5B
Dividend Yield1.01%4.51%
Holdings505100
YTD Return+13.28%-2.18%
1Y Return+23.94%-1.29%
3Y Return (annualized)+21.07%+0.42%
5Y Return (annualized)+13.27%-7.02%
Volatility (annualized)15.3%12.4%
Max Drawdown-56.5%-47.1%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityFixed Income
InceptionJan 22, 1993Nov 19, 2009

SPY vs VGLT Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Long Term Treasury ETF (VGLT) is a ETF from Vanguard (US). Over the past year SPY returned +23.94% while VGLT returned -1.29%. Year to date, SPY is up 13.28% versus a loss of 2.18% for VGLT.

Over three years, SPY compounded at +21.07% per year against +0.42% for VGLT; over five years the annualized figures are +13.27% and -7.02% respectively. Across the full 17-year window we track, SPY has the edge at +8.84% annualized vs +0.36%. 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 12.4% for VGLT. 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 -47.1% for VGLT. 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while VGLT 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 4.51% for VGLT.

Holdings Overlap

0.0%overlap

SPY and VGLT share 0 holdings out of 596 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 VGLT?

SPY has an expense ratio of 0.09% while VGLT charges 0.03%. VGLT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SPY or VGLT?

Over the past year SPY returned +23.94% vs -1.29% for VGLT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.84% vs +0.36% for VGLT. Past performance does not guarantee future results.

Which is riskier, SPY or VGLT?

SPY has been the more volatile fund at 15.3% annualized versus 12.4% for VGLT. Worst drawdown: SPY -56.5% vs VGLT -47.1%.

Should I hold both SPY and VGLT?

SPY and VGLT have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and VGLT?

SPY and VGLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 596 unique securities.

Which pays a higher dividend, SPY or VGLT?

SPY yields 1.01% while VGLT yields 4.51%, so VGLT currently pays the higher dividend yield.

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