SPIP 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

MetricSPIPVYMWinner
Expense Ratio0.12%0.04%
AUM$1.0B$79.0B
Dividend Yield4.77%2.86%
Holdings51568
YTD Return-0.23%+16.10%
1Y Return+0.83%+25.99%
3Y Return (annualized)+3.60%+18.29%
5Y Return (annualized)+0.02%+12.35%
Volatility (annualized)5.9%14.6%
Max Drawdown-18.7%-58.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionMay 25, 2007Nov 10, 2006

SPIP vs VYM Performance

State Street SPDR Portfolio TIPS ETF (SPIP) 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 SPIP returned +0.83% while VYM returned +25.99%. Year to date, SPIP is down 0.23% versus a gain of 16.10% for VYM.

Over three years, SPIP compounded at +3.60% per year against +18.29% for VYM; over five years the annualized figures are +0.02% and +12.35% respectively. Across the full 19-year window we track, VYM has the edge at +7.08% annualized vs +1.55%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.9% for SPIP. 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 -18.7% for SPIP 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SPIP charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, SPIP currently yields 4.77% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

SPIP and VYM share 0 holdings out of 603 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, SPIP or VYM?

SPIP has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, SPIP or VYM?

Over the past year SPIP returned +0.83% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), SPIP annualized +1.55% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, SPIP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.9% for SPIP. Worst drawdown: SPIP -18.7% vs VYM -58.8%.

Should I hold both SPIP and VYM?

SPIP and VYM have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPIP and VYM?

SPIP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.

Which pays a higher dividend, SPIP or VYM?

SPIP yields 4.77% while VYM yields 2.86%, so SPIP currently pays the higher dividend yield.

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