SPY vs VABS
State Street SPDR S&P 500 ETF Trust vs Virtus Newfleet ABS/MBS ETF
Which is better, SPY or VABS?
Large Cap Blend against Short Term Bond.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | VABS |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.39% |
| AUM | $804.7B | $112M |
| Dividend Yield | 0.98% | 4.88% |
| Holdings | 505 | 162 |
| YTD Return | +13.82%Best | +1.66% |
| 1Y Return | +16.96%Best | +2.21% |
| 3Y Return (annualized) | +22.97%Best | +5.81% |
| 5Y Return (annualized) | +13.73%Best | +3.17% |
| Volatility (annualized) | 15.2% | 2.2%Best |
| Max Drawdown | -24.5% | -7.1%Best |
| $10,000 over 5 years | $19,027Best | $11,689 |
| Fund Family | State Street Investment Management | Virtus Investment Partners |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Short Term Bond |
| Inception | Jan 22, 1993 | Feb 9, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 10, 2021 to Sep 21, 2026 (5.6 years).
SPY vs VABS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.6 years both funds cover.
SPY vs VABS Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Virtus Newfleet ABS/MBS ETF (VABS) is an ETF from Virtus Investment Partners. Over the past year SPY returned +16.96% while VABS returned +2.21%. Year to date, SPY is up 13.82% versus a gain of 1.66% for VABS.
Over three years, SPY compounded at +22.97% per year against +5.81% for VABS; over five years the annualized figures are +13.73% and +3.17% respectively. Across the full 6-year window we track, SPY has the edge at +14.48% annualized vs +3.01%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 2.2% for VABS. 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 -24.5% for SPY and -7.1% for VABS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.36. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while VABS charges 0.39%. On a $10,000 position that is $9 vs $39 annually, a gap of $30 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 4.88% for VABS.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 1 in VABS, totalling 99.9% and 0.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 1 in VABS, against full books of 505 and 162.
You are not choosing between two funds in isolation.
Whichever of SPY and VABS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VABS?
SPY has an expense ratio of 0.09% while VABS charges 0.39%. SPY is the cheaper option, by $30 a year on a $10,000 investment.
Which performed better, SPY or VABS?
Over the past year SPY returned +16.96% vs +2.21% for VABS, so SPY leads on 1-year performance. Over the longest common window we track (6 years), SPY annualized +14.48% vs +3.01% for VABS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VABS?
SPY has been the more volatile fund at 15.2% annualized versus 2.2% for VABS. Worst drawdown: SPY -24.5% vs VABS -7.1%.
Should I hold both SPY and VABS?
SPY and VABS have a monthly-return correlation of 0.36, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or VABS?
SPY yields 0.98% while VABS yields 4.88%, so VABS currently pays the higher dividend yield.
Is VABS better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.