SPY vs VBF
State Street SPDR S&P 500 ETF Trust vs Invesco Bond Fund
Which is better, SPY or VBF?
Large Cap Blend against Long Term Mid Quality.
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 | VBF |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.54% |
| AUM | $814.4B | $4,400.74 |
| Dividend Yield | 1.01% | 5.15% |
| Holdings | 505 | 1,492 |
| YTD Return | +13.34%Best | -1.89% |
| 1Y Return | +19.97%Best | -0.88% |
| 3Y Return (annualized) | +21.20%Best | +5.38% |
| 5Y Return (annualized) | +12.81%Best | -1.72% |
| Volatility (annualized) | 15.2% | 10.5%Best |
| Max Drawdown | -56.5% | -41.6%Best |
| $10,000 over 5 years | $18,270Best | $9,169 |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term Mid Quality |
| Inception | Jan 22, 1993 | Oct 28, 1970 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 4, 2026 (30.7 years).
SPY vs VBF 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs VBF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Invesco Bond Fund (VBF) is an ETF from Invesco (US). Over the past year SPY returned +19.97% while VBF returned -0.88%. Year to date, SPY is up 13.34% versus a loss of 1.89% for VBF.
Over three years, SPY compounded at +21.20% per year against +5.38% for VBF; over five years the annualized figures are +12.81% and -1.72% respectively. Across the full 31-year window we track, SPY has the edge at +8.82% annualized vs -0.08%.
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 10.5% for VBF. 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 -41.6% for VBF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.28. They move largely independently of each other.
Fees and Cost Over Time
SPY charges 0.09% per year while VBF charges 0.54%. On a $10,000 position that is $9 vs $54 annually, a gap of $45 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 5.15% for VBF.
Holdings Overlap
At least 0.5% of SPY's money is in holdings VBF also owns.
Stated as a floor: for VBF, our book for it covers 61.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 157 days apart, SPY as of Aug 4, 2026 and VBF as of Feb 28, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 504 positions we hold weights for in SPY and 1,017 in VBF, against full books of 505 and 1,492.
You are not choosing between two funds in isolation.
Whichever of SPY and VBF 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 VBF?
SPY has an expense ratio of 0.09% while VBF charges 0.54%. SPY is the cheaper option, by $45 a year on a $10,000 investment.
Which performed better, SPY or VBF?
Over the past year SPY returned +19.97% vs -0.88% for VBF, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.82% vs -0.08% for VBF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VBF?
SPY has been the more volatile fund at 15.2% annualized versus 10.5% for VBF. Worst drawdown: SPY -56.5% vs VBF -41.6%.
Should I hold both SPY and VBF?
SPY and VBF have a monthly-return correlation of 0.28, 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 VBF?
SPY yields 1.01% while VBF yields 5.15%, so VBF currently pays the higher dividend yield.
Is VBF 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.