SPY vs VLU
SPY vs VLU
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P 1500 Value Tilt ETF
Quick Verdict
SPY has a lower expense ratio. VLU delivered stronger 1-year returns. VLU offers more diversification with 1497 holdings.
Side-by-Side Comparison
| Metric | SPY | VLU | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.12% | |
| AUM | $789.1B | $750M | |
| Dividend Yield | 1.01% | 1.63% | |
| Holdings | 505 | 1,506 | |
| YTD Return | +9.93% | +15.74% | |
| 1Y Return | +19.50% | +27.99% | |
| 3Y Return (annualized) | +19.33% | +18.56% | |
| 5Y Return (annualized) | +12.82% | +12.89% | |
| Volatility (annualized) | 15.3% | 15.9% | |
| Max Drawdown | -56.5% | -37.9% | |
| Fund Family | State Street Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Oct 24, 2012 |
SPY vs VLU Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and State Street SPDR S&P 1500 Value Tilt ETF (VLU) is a ETF from State Street Investment Management. Over the past year SPY returned +19.50% while VLU returned +27.99%. Year to date, SPY is up 9.93% versus a gain of 15.74% for VLU.
Over three years, SPY compounded at +19.33% per year against +18.56% for VLU; over five years the annualized figures are +12.82% and +12.89% respectively. Across the full 14-year window we track, VLU has the edge at +11.55% annualized vs +8.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLU has been the more volatile fund, with annualized monthly volatility of 15.9% 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 -37.9% for VLU. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while VLU charges 0.12%. On a $10,000 position that is $9 vs $12 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.63% for VLU.
Holdings Overlap
SPY and VLU share 492 holdings out of 1508 unique holdings combined, representing a 57.6% weight overlap.
High overlap means holding both may not provide much additional diversification.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VLU | Difference |
|---|---|---|---|
| AAPL | 7.09% | 1.80% | 5.29% |
| NVDA | 7.31% | 0.96% | 6.35% |
| MSFT | 4.43% | 2.56% | 1.87% |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| BRK.B | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| JPM | Pro | Pro | Pro |
See all 10 holdings SPY shares with VLU Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SPY or VLU?
SPY has an expense ratio of 0.09% while VLU charges 0.12%. SPY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VLU?
Over the past year SPY returned +19.50% vs +27.99% for VLU, so VLU leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +8.74% vs +11.55% for VLU. Past performance does not guarantee future results.
Which is riskier, SPY or VLU?
VLU has been the more volatile fund at 15.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VLU -37.9%.
Should I hold both SPY and VLU?
SPY and VLU have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and VLU?
SPY and VLU share 492 common holdings with a 57.6% weight overlap. Combined, they hold 1508 unique securities.
Which pays a higher dividend, SPY or VLU?
SPY yields 1.01% while VLU yields 1.63%, so VLU currently pays the higher dividend yield.
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