SPY vs VCSH
State Street SPDR S&P 500 ETF Trust vs Vanguard Short Term Corporate Bond ETF
Quick Verdict
VCSH has a lower expense ratio. SPY delivered stronger 1-year returns. VCSH offers more diversification with 2440 holdings.
Side-by-Side Comparison
| Metric | SPY | VCSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $44.9B | |
| Dividend Yield | 1.01% | 4.44% | |
| Holdings | 505 | 2,719 | |
| YTD Return | +13.68% | +0.70% | |
| 1Y Return | +21.53% | +2.88% | |
| 3Y Return (annualized) | +21.44% | +5.52% | |
| 5Y Return (annualized) | +13.18% | +2.31% | |
| Volatility (annualized) | 15.3% | 2.6% | |
| Max Drawdown | -56.5% | -12.9% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
SPY vs VCSH Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Short Term Corporate Bond ETF (VCSH) is a ETF from Vanguard (US). Over the past year SPY returned +21.53% while VCSH returned +2.88%. Year to date, SPY is up 13.68% versus a gain of 0.70% for VCSH.
Over three years, SPY compounded at +21.44% per year against +5.52% for VCSH; over five years the annualized figures are +13.18% and +2.31% respectively. Across the full 17-year window we track, SPY has the edge at +8.85% annualized vs +1.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.6% for VCSH. 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 -12.9% for VCSH. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VCSH 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 1.01% against 4.44% for VCSH.
Holdings Overlap
SPY and VCSH share 3 holdings out of 2940 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 VCSH?
SPY has an expense ratio of 0.09% while VCSH charges 0.03%. VCSH is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VCSH?
Over the past year SPY returned +21.53% vs +2.88% for VCSH, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.85% vs +1.28% for VCSH. Past performance does not guarantee future results.
Which is riskier, SPY or VCSH?
SPY has been the more volatile fund at 15.3% annualized versus 2.6% for VCSH. Worst drawdown: SPY -56.5% vs VCSH -12.9%.
Should I hold both SPY and VCSH?
SPY and VCSH have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VCSH?
SPY and VCSH share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2940 unique securities.
Which pays a higher dividend, SPY or VCSH?
SPY yields 1.01% while VCSH yields 4.44%, so VCSH currently pays the higher dividend yield.
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