SPY vs VBND
State Street SPDR S&P 500 ETF Trust vs Vident US Bond Strategy ETF
Which is better, SPY or VBND?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.2%.
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 | VBND |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.41% |
| AUM | $804.7B | $522M |
| Dividend Yield | 0.98% | 4.37% |
| Holdings | 505 | 177 |
| YTD Return | +12.47%Best | -0.76% |
| 1Y Return | +17.51%Best | -0.33% |
| 3Y Return (annualized) | +21.18%Best | +4.39% |
| 5Y Return (annualized) | +12.88%Best | -0.30% |
| Volatility (annualized) | 14.9% | 5.3%Best |
| Max Drawdown | -34.1% | -19.0%Best |
| $10,000 over 5 years | $18,327Best | $9,851 |
| Top 10 Weight | 38.0%Best | 42.2% |
| Fund Family | State Street Investment Management | Vident Financial |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | - |
| Inception | Jan 22, 1993 | Oct 15, 2014 |
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2014 to Sep 11, 2026 (11.9 years).
SPY vs VBND 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 VBND Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vident US Bond Strategy ETF (VBND) is an ETF from Vident Financial. Over the past year SPY returned +17.51% while VBND returned -0.33%. Year to date, SPY is up 12.47% versus a loss of 0.76% for VBND.
Over three years, SPY compounded at +21.18% per year against +4.39% for VBND; over five years the annualized figures are +12.88% and -0.30% respectively. Across the full 12-year window we track, SPY has the edge at +13.29% annualized vs +0.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 5.3% for VBND. 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 -34.1% for SPY and -19.0% for VBND. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.48. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while VBND charges 0.41%. On a $10,000 position that is $9 vs $41 annually, a gap of $32 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 4.37% for VBND.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 151 in VBND, totalling 100.0% and 98.6% 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 151 in VBND, against full books of 505 and 177.
What only one of them owns
Our book lists 150 positions for VBND that do not appear in our book for SPY (98.6% of the fund), and 494 for SPY that do not appear in VBND (99.5%).
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.
You are not choosing between two funds in isolation.
Whichever of SPY and VBND 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 VBND?
SPY has an expense ratio of 0.09% while VBND charges 0.41%. SPY is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, SPY or VBND?
Over the past year SPY returned +17.51% vs -0.33% for VBND, so SPY leads on 1-year performance. Over the longest common window we track (12 years), SPY annualized +13.29% vs +0.24% for VBND. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VBND?
SPY has been the more volatile fund at 14.9% annualized versus 5.3% for VBND. Worst drawdown: SPY -34.1% vs VBND -19.0%.
Should I hold both SPY and VBND?
SPY and VBND have a monthly-return correlation of 0.48, 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 VBND?
SPY yields 0.98% while VBND yields 4.37%, so VBND currently pays the higher dividend yield.
Is VBND better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 42.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.