SPDW vs VCIT

Quick Verdict

SPDW delivered stronger 1-year returns. SPDW offers more diversification with 2348 holdings.

Lower Fees: TiedHigher Returns: SPDWMore Diversified: SPDW

Side-by-Side Comparison

MetricSPDWVCITWinner
Expense Ratio0.03%0.03%
AUM$40.0B$67.3B
Dividend Yield3.02%4.77%
Holdings2,4402,253
YTD Return+16.58%-0.43%
1Y Return+30.06%+2.34%
3Y Return (annualized)+19.68%+5.82%
5Y Return (annualized)+9.87%+0.84%
Volatility (annualized)17.6%6.0%
Max Drawdown-62.2%-20.7%
Fund FamilySPDR State Street Global AdvisorsVanguard (US)
CategoryEquityFixed Income
InceptionApr 20, 2007Nov 19, 2009

SPDW vs VCIT Performance

State Street SPDR Portfolio Developed World ex-US ETF (SPDW) is a ETF from SPDR State Street Global Advisors and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is a ETF from Vanguard (US). Over the past year SPDW returned +30.06% while VCIT returned +2.34%. Year to date, SPDW is up 16.58% versus a loss of 0.43% for VCIT.

Over three years, SPDW compounded at +19.68% per year against +5.82% for VCIT; over five years the annualized figures are +9.87% and +0.84% respectively. Across the full 17-year window we track, SPDW has the edge at +3.17% annualized vs +1.75%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPDW has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 6.0% for VCIT. 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 -62.2% for SPDW and -20.7% for VCIT. 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

SPDW charges 0.03% per year while VCIT charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, SPDW currently yields 3.02% against 4.77% for VCIT.

Holdings Overlap

0.0%overlap

SPDW and VCIT share 0 holdings out of 4367 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, SPDW or VCIT?

SPDW has an expense ratio of 0.03% while VCIT charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, SPDW or VCIT?

Over the past year SPDW returned +30.06% vs +2.34% for VCIT, so SPDW leads on 1-year performance. Over the longest common window we track (17 years), SPDW annualized +3.17% vs +1.75% for VCIT. Past performance does not guarantee future results.

Which is riskier, SPDW or VCIT?

SPDW has been the more volatile fund at 17.6% annualized versus 6.0% for VCIT. Worst drawdown: SPDW -62.2% vs VCIT -20.7%.

Should I hold both SPDW and VCIT?

SPDW and VCIT 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 SPDW and VCIT?

SPDW and VCIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4367 unique securities.

Which pays a higher dividend, SPDW or VCIT?

SPDW yields 3.02% while VCIT yields 4.77%, so VCIT currently pays the higher dividend yield.

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