SPY vs VGVT

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

MetricSPYVGVTWinner
Expense Ratio0.09%0.10%
AUM$789.1B$39M
Dividend Yield1.01%3.96%
Holdings505194
YTD Return+9.93%-0.58%
1Y Return+19.50%+2.53%
3Y Return (annualized)+19.33%-
5Y Return (annualized)+12.82%-
Volatility (annualized)15.3%3.4%
Max Drawdown-56.5%-2.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityFixed Income
InceptionJan 22, 1993Jun 18, 2025

SPY vs VGVT Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Government Securities Active ETF (VGVT) is a ETF from Vanguard (US). Over the past year SPY returned +19.50% while VGVT returned +2.53%. Year to date, SPY is up 9.93% versus a loss of 0.58% for VGVT.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.4% for VGVT. 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 -2.8% for VGVT. 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPY charges 0.09% per year while VGVT charges 0.10%. On a $10,000 position that is $9 vs $10 annually, a gap of $1 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.96% for VGVT.

Holdings Overlap

0.0%overlap

SPY and VGVT share 0 holdings out of 646 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 VGVT?

SPY has an expense ratio of 0.09% while VGVT charges 0.10%. SPY is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, SPY or VGVT?

Over the past year SPY returned +19.50% vs +2.53% for VGVT, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.74% vs +2.46% for VGVT. Past performance does not guarantee future results.

Which is riskier, SPY or VGVT?

SPY has been the more volatile fund at 15.3% annualized versus 3.4% for VGVT. Worst drawdown: SPY -56.5% vs VGVT -2.8%.

Should I hold both SPY and VGVT?

SPY and VGVT have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and VGVT?

SPY and VGVT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.

Which pays a higher dividend, SPY or VGVT?

SPY yields 1.01% while VGVT yields 3.96%, so VGVT currently pays the higher dividend yield.

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