SPY vs VBIL
State Street SPDR S&P 500 ETF Trust vs Vanguard 0-3 Month Treasury Bill ETF
Quick Verdict
VBIL has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VBIL | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $789.1B | $9.4B | |
| Dividend Yield | 1.01% | 3.65% | |
| Holdings | 505 | 28 | |
| YTD Return | +13.79% | +1.84% | |
| 1Y Return | +23.66% | +3.52% | |
| 3Y Return (annualized) | +21.40% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.3% | 0.7% | |
| Max Drawdown | -56.5% | -0.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Feb 7, 2025 |
SPY vs VBIL Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard 0-3 Month Treasury Bill ETF (VBIL) is a ETF from Vanguard (US). Over the past year SPY returned +23.66% while VBIL returned +3.52%. Year to date, SPY is up 13.79% versus a gain of 1.84% for VBIL.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 0.7% for VBIL. 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 -0.3% for VBIL. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VBIL charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.65% for VBIL.
Holdings Overlap
SPY and VBIL share 0 holdings out of 505 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, SPY or VBIL?
SPY has an expense ratio of 0.09% while VBIL charges 0.06%. VBIL is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VBIL?
Over the past year SPY returned +23.66% vs +3.52% for VBIL, so SPY leads on 1-year performance. Over the longest common window we track (2 years), SPY annualized +8.85% vs +4.61% for VBIL. Past performance does not guarantee future results.
Which is riskier, SPY or VBIL?
SPY has been the more volatile fund at 15.3% annualized versus 0.7% for VBIL. Worst drawdown: SPY -56.5% vs VBIL -0.3%.
Should I hold both SPY and VBIL?
SPY and VBIL have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VBIL?
SPY and VBIL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or VBIL?
SPY yields 1.01% while VBIL yields 3.65%, so VBIL currently pays the higher dividend yield.
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