SPY vs VCIT
State Street SPDR S&P 500 ETF Trust vs Vanguard Intermediate Term Corporate Bond ETF
Which is better, SPY or VCIT?
Large Cap Blend against Long Term Mid Quality.
VCIT 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 | VCIT |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $804.7B | $69.8B |
| Dividend Yield | 0.98% | 4.89% |
| Holdings | 505 | 2,271 |
| YTD Return | +12.09%Best | -1.72% |
| 1Y Return | +16.29%Best | -0.83% |
| 3Y Return (annualized) | +21.20%Best | +5.86% |
| 5Y Return (annualized) | +13.37%Best | +0.46% |
| Volatility (annualized) | 14.4% | 5.9%Best |
| Max Drawdown | -34.1% | -20.7%Best |
| $10,000 over 5 years | $18,728Best | $10,232 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term Mid Quality |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 18, 2026 (16.8 years).
SPY vs VCIT 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 VCIT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Intermediate Term Corporate Bond ETF (VCIT) is an ETF from Vanguard (US). Over the past year SPY returned +16.29% while VCIT returned -0.83%. Year to date, SPY is up 12.09% versus a loss of 1.72% for VCIT.
Over three years, SPY compounded at +21.20% per year against +5.86% for VCIT; over five years the annualized figures are +13.37% and +0.46% respectively. Across the full 17-year window we track, SPY has the edge at +12.64% annualized vs +1.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.4% compared with 5.9% for VCIT. 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 -20.7% for VCIT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.47. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while VCIT 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 4.89% for VCIT.
Holdings Overlap
At least 0.8% of SPY's money is in holdings VCIT also owns.
Stated as a floor: for VCIT, our book for it covers 61.8% 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.
3 positions in common, counted across the 504 positions we hold weights for in SPY and 1,364 in VCIT, against full books of 505 and 2,271.
You are not choosing between two funds in isolation.
Whichever of SPY and VCIT 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 VCIT?
SPY has an expense ratio of 0.09% while VCIT charges 0.03%. VCIT is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or VCIT?
Over the past year SPY returned +16.29% vs -0.83% for VCIT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +12.64% vs +1.66% for VCIT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VCIT?
SPY has been the more volatile fund at 14.4% annualized versus 5.9% for VCIT. Worst drawdown: SPY -34.1% vs VCIT -20.7%.
Should I hold both SPY and VCIT?
SPY and VCIT have a monthly-return correlation of 0.47, 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 VCIT?
SPY yields 0.98% while VCIT yields 4.89%, so VCIT currently pays the higher dividend yield.
Is VCIT better than SPY?
VCIT 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.