SPY vs VTC
SPY vs VTC
State Street SPDR S&P 500 ETF Trust vs Vanguard Total Corporate Bond ETF
Quick Verdict
VTC has a lower expense ratio. SPY delivered stronger 1-year returns. VTC offers more diversification with 4198 holdings.
Side-by-Side Comparison
| Metric | SPY | VTC | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $1.8B | |
| Dividend Yield | 1.01% | 4.17% | |
| Holdings | 505 | 4,840 | |
| YTD Return | +13.10% | -0.59% | |
| 1Y Return | +22.80% | +1.57% | |
| 3Y Return (annualized) | +20.98% | +4.87% | |
| 5Y Return (annualized) | +13.20% | -0.22% | |
| Volatility (annualized) | 15.3% | 7.3% | |
| Max Drawdown | -56.5% | -22.4% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 7, 2017 |
SPY vs VTC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US). Over the past year SPY returned +22.80% while VTC returned +1.57%. Year to date, SPY is up 13.10% versus a loss of 0.59% for VTC.
Over three years, SPY compounded at +20.98% per year against +4.87% for VTC; over five years the annualized figures are +13.20% and -0.22% respectively. Across the full 9-year window we track, SPY has the edge at +8.83% annualized vs +0.96%. 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 7.3% for VTC. 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 -22.4% for VTC. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTC charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.17% for VTC.
Holdings Overlap
SPY and VTC share 1 holdings out of 4700 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VTC | Difference |
|---|---|---|---|
| CNP | 0.04% | 0.01% | 0.03% |
Frequently Asked Questions
Which is cheaper, SPY or VTC?
SPY has an expense ratio of 0.09% while VTC charges 0.03%. VTC is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VTC?
Over the past year SPY returned +22.80% vs +1.57% for VTC, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.83% vs +0.96% for VTC. Past performance does not guarantee future results.
Which is riskier, SPY or VTC?
SPY has been the more volatile fund at 15.3% annualized versus 7.3% for VTC. Worst drawdown: SPY -56.5% vs VTC -22.4%.
Should I hold both SPY and VTC?
SPY and VTC have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTC?
SPY and VTC share 1 common holdings with a 0.0% weight overlap. Combined, they hold 4700 unique securities.
Which pays a higher dividend, SPY or VTC?
SPY yields 1.01% while VTC yields 4.17%, so VTC currently pays the higher dividend yield.
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