SPY vs VPU
SPY vs VPU
State Street SPDR S&P 500 ETF Trust vs Vanguard Utilities ETF
Quick Verdict
VPU has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VPU | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $789.1B | $8.7B | |
| Dividend Yield | 1.01% | 2.86% | |
| Holdings | 505 | 70 | |
| YTD Return | +13.10% | +1.56% | |
| 1Y Return | +22.80% | +4.09% | |
| 3Y Return (annualized) | +20.98% | +13.91% | |
| 5Y Return (annualized) | +13.20% | +8.22% | |
| Volatility (annualized) | 15.3% | 13.9% | |
| Max Drawdown | -56.5% | -48.4% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jan 26, 2004 |
SPY vs VPU Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Utilities ETF (VPU) is a ETF from Vanguard (US). Over the past year SPY returned +22.80% while VPU returned +4.09%. Year to date, SPY is up 13.10% versus a gain of 1.56% for VPU.
Over three years, SPY compounded at +20.98% per year against +13.91% for VPU; over five years the annualized figures are +13.20% and +8.22% respectively. Across the full 23-year window we track, SPY has the edge at +8.83% annualized vs +6.86%. 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 13.9% for VPU. 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 -48.4% for VPU. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VPU charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.86% for VPU.
Holdings Overlap
SPY and VPU share 31 holdings out of 540 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VPU | Difference |
|---|---|---|---|
| NEE | 0.28% | 11.60% | 11.32% |
| SO | 0.17% | 6.84% | 6.67% |
| DUK | 0.15% | 6.24% | 6.09% |
| CEG | Pro | Pro | Pro |
| AEP | Pro | Pro | Pro |
| SRE | Pro | Pro | Pro |
| D | Pro | Pro | Pro |
| VST | Pro | Pro | Pro |
| ETR | Pro | Pro | Pro |
| XEL | Pro | Pro | Pro |
See all 10 holdings SPY shares with VPU 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 VPU?
SPY has an expense ratio of 0.09% while VPU charges 0.09%. VPU is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SPY or VPU?
Over the past year SPY returned +22.80% vs +4.09% for VPU, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SPY annualized +8.83% vs +6.86% for VPU. Past performance does not guarantee future results.
Which is riskier, SPY or VPU?
SPY has been the more volatile fund at 15.3% annualized versus 13.9% for VPU. Worst drawdown: SPY -56.5% vs VPU -48.4%.
Should I hold both SPY and VPU?
SPY and VPU have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VPU?
SPY and VPU share 31 common holdings with a 2.2% weight overlap. Combined, they hold 540 unique securities.
Which pays a higher dividend, SPY or VPU?
SPY yields 1.01% while VPU yields 2.86%, so VPU currently pays the higher dividend yield.
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