SPY vs VRIG
SPY vs VRIG
State Street SPDR S&P 500 ETF Trust vs Invesco Variable Rate Investment Grade 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 | VRIG | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.30% | |
| AUM | $789.1B | $1.8B | |
| Dividend Yield | 1.01% | 4.71% | |
| Holdings | 505 | 364 | |
| YTD Return | +13.79% | +2.58% | |
| 1Y Return | +23.66% | +4.65% | |
| 3Y Return (annualized) | +21.40% | +5.72% | |
| 5Y Return (annualized) | +13.37% | +4.57% | |
| Volatility (annualized) | 15.3% | 3.4% | |
| Max Drawdown | -56.5% | -14.3% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Sep 20, 2016 |
SPY vs VRIG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco Variable Rate Investment Grade ETF (VRIG) is a ETF from Invesco (US). Over the past year SPY returned +23.66% while VRIG returned +4.65%. Year to date, SPY is up 13.79% versus a gain of 2.58% for VRIG.
Over three years, SPY compounded at +21.40% per year against +5.72% for VRIG; over five years the annualized figures are +13.37% and +4.57% respectively. Across the full 10-year window we track, SPY has the edge at +8.85% annualized vs +2.36%. 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 3.4% for VRIG. 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 -14.3% for VRIG. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VRIG charges 0.30%. On a $10,000 position that is $9 vs $30 annually, a gap of $21 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.71% for VRIG.
Holdings Overlap
SPY and VRIG share 0 holdings out of 809 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 VRIG?
SPY has an expense ratio of 0.09% while VRIG charges 0.30%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, SPY or VRIG?
Over the past year SPY returned +23.66% vs +4.65% for VRIG, so SPY leads on 1-year performance. Over the longest common window we track (10 years), SPY annualized +8.85% vs +2.36% for VRIG. Past performance does not guarantee future results.
Which is riskier, SPY or VRIG?
SPY has been the more volatile fund at 15.3% annualized versus 3.4% for VRIG. Worst drawdown: SPY -56.5% vs VRIG -14.3%.
Should I hold both SPY and VRIG?
SPY and VRIG have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VRIG?
SPY and VRIG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 809 unique securities.
Which pays a higher dividend, SPY or VRIG?
SPY yields 1.01% while VRIG yields 4.71%, so VRIG currently pays the higher dividend yield.
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