SPY vs VNQ
SPY vs VNQ
State Street SPDR S&P 500 ETF Trust vs Vanguard Real Estate ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.13% | |
| AUM | $789.1B | $38.2B | |
| Dividend Yield | 1.01% | 3.52% | |
| Holdings | 505 | 144 | |
| YTD Return | +13.28% | +13.94% | |
| 1Y Return | +23.94% | +13.86% | |
| 3Y Return (annualized) | +21.07% | +9.85% | |
| 5Y Return (annualized) | +13.27% | +2.28% | |
| Volatility (annualized) | 15.3% | 21.4% | |
| Max Drawdown | -56.5% | -75.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Sep 23, 2004 |
SPY vs VNQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year SPY returned +23.94% while VNQ returned +13.86%. Year to date, SPY is up 13.28% versus a gain of 13.94% for VNQ.
Over three years, SPY compounded at +21.07% per year against +9.85% for VNQ; over five years the annualized figures are +13.27% and +2.28% respectively. Across the full 22-year window we track, SPY has the edge at +8.84% annualized vs +4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -75.8% for VNQ. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VNQ charges 0.13%. On a $10,000 position that is $9 vs $13 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.52% for VNQ.
Holdings Overlap
SPY and VNQ share 31 holdings out of 616 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VNQ | Difference |
|---|---|---|---|
| WELL | 0.25% | 8.41% | 8.16% |
| PLD | 0.20% | 6.70% | 6.50% |
| EQIX | 0.15% | 5.46% | 5.31% |
| AMT | Pro | Pro | Pro |
| SPG | Pro | Pro | Pro |
| DLR | Pro | Pro | Pro |
| O | Pro | Pro | Pro |
| PSA | Pro | Pro | Pro |
| VTR | Pro | Pro | Pro |
| CBRE | Pro | Pro | Pro |
See all 10 holdings SPY shares with VNQ 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 VNQ?
SPY has an expense ratio of 0.09% while VNQ charges 0.13%. SPY is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or VNQ?
Over the past year SPY returned +23.94% vs +13.86% for VNQ, so SPY leads on 1-year performance. Over the longest common window we track (22 years), SPY annualized +8.84% vs +4.16% for VNQ. Past performance does not guarantee future results.
Which is riskier, SPY or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VNQ -75.8%.
Should I hold both SPY and VNQ?
SPY and VNQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VNQ?
SPY and VNQ share 31 common holdings with a 1.8% weight overlap. Combined, they hold 616 unique securities.
Which pays a higher dividend, SPY or VNQ?
SPY yields 1.01% while VNQ yields 3.52%, so VNQ currently pays the higher dividend yield.
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