SPY vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSPYVYMWinner
Expense Ratio0.09%0.04%
AUM$789.1B$79.0B
Dividend Yield1.01%2.86%
Holdings505568
YTD Return+9.93%+13.24%
1Y Return+19.50%+23.76%
3Y Return (annualized)+19.33%+16.97%
5Y Return (annualized)+12.82%+12.26%
Volatility (annualized)15.3%14.6%
Max Drawdown-56.5%-58.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionJan 22, 1993Nov 10, 2006

SPY vs VYM Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SPY returned +19.50% while VYM returned +23.76%. Year to date, SPY is up 9.93% versus a gain of 13.24% for VYM.

Over three years, SPY compounded at +19.33% per year against +16.97% for VYM; over five years the annualized figures are +12.82% and +12.26% respectively. Across the full 20-year window we track, SPY has the edge at +8.74% annualized vs +6.96%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.92. 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 VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.86% for VYM.

Holdings Overlap

32.9%overlap

SPY and VYM share 224 holdings out of 837 unique holdings combined, representing a 32.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in VYMDifference
AVGO2.73%6.47%3.74%
JPM1.40%3.36%1.96%
XOM0.87%2.83%1.96%
JNJProProPro
WMTProProPro
ABBVProProPro
PGProProPro
CATProProPro
HDProProPro
CSCOProProPro
See all 10 holdings SPY shares with VYM
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Frequently Asked Questions

Which is cheaper, SPY or VYM?

SPY has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, SPY or VYM?

Over the past year SPY returned +19.50% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.74% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, SPY or VYM?

SPY has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: SPY -56.5% vs VYM -58.8%.

Should I hold both SPY and VYM?

SPY and VYM have a monthly-return correlation of 0.92, 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 VYM?

SPY and VYM share 224 common holdings with a 32.9% weight overlap. Combined, they hold 837 unique securities.

Which pays a higher dividend, SPY or VYM?

SPY yields 1.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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