SPY vs VSLU

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. VSLU offers more diversification with 586 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: VSLU

Side-by-Side Comparison

MetricSPYVSLUWinner
Expense Ratio0.09%0.49%
AUM$789.1B$545M
Dividend Yield1.01%0.45%
Holdings505591
YTD Return+13.50%+11.25%
1Y Return+23.56%+21.47%
3Y Return (annualized)+21.17%+21.03%
5Y Return (annualized)+13.46%+13.62%
Volatility (annualized)15.3%14.8%
Max Drawdown-56.5%-23.9%
Fund FamilyState Street Investment ManagementApplied Finance Funds
CategoryEquityEquity
InceptionJan 22, 1993Apr 29, 2021

SPY vs VSLU Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Applied Finance Valuation Large Cap ETF (VSLU) is a ETF from Applied Finance Funds. Over the past year SPY returned +23.56% while VSLU returned +21.47%. Year to date, SPY is up 13.50% versus a gain of 11.25% for VSLU.

Over three years, SPY compounded at +21.17% per year against +21.03% for VSLU; over five years the annualized figures are +13.46% and +13.62% respectively. Across the full 5-year window we track, VSLU has the edge at +14.20% annualized vs +8.85%. 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 14.8% for VSLU. 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 -23.9% for VSLU. 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 0.98. 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 VSLU charges 0.49%. On a $10,000 position that is $9 vs $49 annually, a gap of $40 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.45% for VSLU.

Holdings Overlap

61.7%overlap

SPY and VSLU share 318 holdings out of 771 unique holdings combined, representing a 61.7% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in SPYWeight in VSLUDifference
AAPL7.09%9.15%2.06%
NVDA7.31%8.52%1.21%
GOOGL3.32%8.64%5.32%
MSFTProProPro
AMZNProProPro
AVGOProProPro
METAProProPro
VProProPro
MAProProPro
JNJProProPro
See all 10 holdings SPY shares with VSLU
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, SPY or VSLU?

SPY has an expense ratio of 0.09% while VSLU charges 0.49%. SPY is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, SPY or VSLU?

Over the past year SPY returned +23.56% vs +21.47% for VSLU, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.85% vs +14.20% for VSLU. Past performance does not guarantee future results.

Which is riskier, SPY or VSLU?

SPY has been the more volatile fund at 15.3% annualized versus 14.8% for VSLU. Worst drawdown: SPY -56.5% vs VSLU -23.9%.

Should I hold both SPY and VSLU?

SPY and VSLU have a monthly-return correlation of 0.98, 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 VSLU?

SPY and VSLU share 318 common holdings with a 61.7% weight overlap. Combined, they hold 771 unique securities.

Which pays a higher dividend, SPY or VSLU?

SPY yields 1.01% while VSLU yields 0.45%, so SPY currently pays the higher dividend yield.

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