SPY vs VB
State Street SPDR S&P 500 ETF Trust vs Vanguard Morningstar Small-Cap ETF
Which is better, SPY or VB?
Large Cap Blend against Small Cap Blend.
VB has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 38.0%.
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 | VB |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $804.7B | $79.7B |
| Dividend Yield | 0.98% | 1.21% |
| Holdings | 505 | 1,319 |
| YTD Return | +12.47% | +12.96%Best |
| 1Y Return | +17.51%Best | +15.18% |
| 3Y Return (annualized) | +21.18%Best | +15.97% |
| 5Y Return (annualized) | +12.88%Best | +7.16% |
| Volatility (annualized) | 14.6%Best | 18.8% |
| Max Drawdown | -56.5%Best | -61.0% |
| $10,000 over 5 years | $18,327Best | $14,131 |
| Top 10 Weight | 38.0% | 4.3%Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Small Cap Blend |
| Inception | Jan 22, 1993 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 11, 2026 (22.6 years).
SPY vs VB 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 22.6 years both funds cover.
SPY vs VB Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Morningstar Small-Cap ETF (VB) is an ETF from Vanguard (US). Over the past year SPY returned +17.51% while VB returned +15.18%. Year to date, SPY is up 12.47% versus a gain of 12.96% for VB.
Over three years, SPY compounded at +21.18% per year against +15.97% for VB; over five years the annualized figures are +12.88% and +7.16% respectively. Across the full 23-year window we track, SPY has the edge at +9.16% annualized vs +8.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VB has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 14.6% for SPY. 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 -61.0% for VB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. 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 VB 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 0.98% against 1.21% for VB.
Holdings Overlap
4.8% of SPY's money is in holdings VB also owns. 19.8% of VB's money is in holdings SPY also owns.
VB and SPY share little of their money.
121 positions in common, counted across the 504 positions we hold weights for in SPY and 1,303 in VB, against full books of 505 and 1,319.
What only one of them owns
Our book lists 1,126 positions for VB that do not appear in our book for SPY (74.9% of the fund), and 375 for SPY that do not appear in VB (94.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VB | Difference |
|---|---|---|---|
| METAMeta Platforms, Inc. | 1.94% | 0.00% | 1.94% |
| JBLJabil, Inc. | 0.05% | 0.49% | 0.44% |
| EMEEmcor Group Inc | 0.05% | 0.44% | 0.39% |
| NRGNrg Energy Inc. | 0.04% | 0.37% | 0.33% |
| TPRTapestry Inc. | 0.05% | 0.35% | 0.30% |
| CASYCasey's General Stores Inc | 0.05% | 0.35% | 0.30% |
| ATOAtmos Energy Corp | 0.04% | 0.34% | 0.30% |
| WSMWilliams-sonoma Inc | 0.04% | 0.33% | 0.29% |
| MRNAModerna Inc | 0.03% | 0.30% | 0.27% |
| FFIVF5 Networks Inc. | 0.03% | 0.28% | 0.25% |
You are not choosing between two funds in isolation.
Whichever of SPY and VB 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 VB?
SPY has an expense ratio of 0.09% while VB charges 0.03%. VB is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or VB?
Over the past year SPY returned +17.51% vs +15.18% for VB, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SPY annualized +9.16% vs +8.62% for VB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VB?
VB has been the more volatile fund at 18.8% annualized versus 14.6% for SPY. Worst drawdown: SPY -56.5% vs VB -61.0%.
Should I hold both SPY and VB?
SPY and VB have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and VB?
19.8% of VB's money is in holdings SPY also owns. 19.8% of VB's is in holdings SPY also owns. They hold 121 positions in common, counted across the 504 positions we hold weights for in SPY and 1,303 in VB.
Which pays a higher dividend, SPY or VB?
SPY yields 0.98% while VB yields 1.21%, so VB currently pays the higher dividend yield.
Is VB better than SPY?
VB has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VB is less concentrated, with 4.3% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.