SPY vs VBR

SPY vs VBR

Which is better, SPY or VBR?

Large Cap Blend against Small Cap Value.

VBR has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 38.0%.

Lower Fees: VBRHigher Returns: SPYLess Concentrated: VBR

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

MetricSPYVBR
Expense Ratio0.09%0.05%Best
AUM$804.7B$37.3B
Dividend Yield0.98%1.76%
Holdings505847
YTD Return+12.47%+14.07%Best
1Y Return+17.51%Best+16.26%
3Y Return (annualized)+21.18%Best+16.15%
5Y Return (annualized)+12.88%Best+9.41%
Volatility (annualized)14.6%Best19.0%
Max Drawdown-56.5%Best-64.0%
$10,000 over 5 years$18,327Best$15,678
Top 10 Weight38.0%5.9%Best
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendSmall Cap Value
InceptionJan 22, 1993Jan 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 VBR 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 VBR Performance

State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US). Over the past year SPY returned +17.51% while VBR returned +16.26%. Year to date, SPY is up 12.47% versus a gain of 14.07% for VBR.

Over three years, SPY compounded at +21.18% per year against +16.15% for VBR; over five years the annualized figures are +12.88% and +9.41% respectively. Across the full 23-year window we track, SPY has the edge at +9.16% annualized vs +7.84%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while VBR charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 1.76% for VBR.

Holdings Overlap

SPY already in VBR4.3%
VBR already in SPY28.0%

4.3% of SPY's money is in holdings VBR also owns. 28.0% of VBR's money is in holdings SPY also owns.

VBR and SPY share little of their money.

98 positions in common, counted across the 504 positions we hold weights for in SPY and 835 in VBR, against full books of 505 and 847.

What only one of them owns

Our book lists 705 positions for VBR that do not appear in our book for SPY (68.7% of the fund), and 398 for SPY that do not appear in VBR (95.2%).

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

StockWeight in SPYWeight in VBRDifference
METAMeta Platforms, Inc.1.94%0.00%1.94%
JBLJabil, Inc.0.05%0.87%0.82%
NRGNrg Energy Inc.0.04%0.66%0.62%
TPRTapestry Inc.0.05%0.63%0.58%
ATOAtmos Energy Corp0.04%0.61%0.57%
WSMWilliams-sonoma Inc0.04%0.59%0.55%
MRNAModerna Inc0.03%0.53%0.50%
FFIVF5 Networks Inc.0.03%0.50%0.47%
JBHTJb Hunt Transport Services Inc.0.03%0.47%0.44%
CHKChesapeake Energy Corp0.03%0.47%0.44%

28.0% of VBR is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

SPYVBR

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Frequently Asked Questions

Which is cheaper, SPY or VBR?

SPY has an expense ratio of 0.09% while VBR charges 0.05%. VBR is the cheaper option, by $4 a year on a $10,000 investment.

Which performed better, SPY or VBR?

Over the past year SPY returned +17.51% vs +16.26% for VBR, so SPY leads on 1-year performance. Over the longest common window we track (23 years), SPY annualized +9.16% vs +7.84% for VBR. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, SPY or VBR?

VBR has been the more volatile fund at 19.0% annualized versus 14.6% for SPY. Worst drawdown: SPY -56.5% vs VBR -64.0%.

Should I hold both SPY and VBR?

SPY and VBR have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between SPY and VBR?

28.0% of VBR's money is in holdings SPY also owns. 28.0% of VBR's is in holdings SPY also owns. They hold 98 positions in common, counted across the 504 positions we hold weights for in SPY and 835 in VBR.

Which pays a higher dividend, SPY or VBR?

SPY yields 0.98% while VBR yields 1.76%, so VBR currently pays the higher dividend yield.

Is VBR better than SPY?

VBR has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. VBR is less concentrated, with 5.9% 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.