SPY vs VCV
State Street SPDR S&P 500 ETF Trust vs Invesco California Value Municipal Income Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VCV | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 3.57% | |
| AUM | $789.1B | $3,027.72 | |
| Dividend Yield | 1.01% | 7.48% | |
| Holdings | 505 | 346 | |
| YTD Return | +13.39% | +0.14% | |
| 1Y Return | +22.52% | +12.47% | |
| 3Y Return (annualized) | +21.36% | +10.85% | |
| 5Y Return (annualized) | +13.19% | -0.15% | |
| Volatility (annualized) | 15.3% | 14.3% | |
| Max Drawdown | -56.5% | -63.9% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Apr 30, 1993 |
SPY vs VCV Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco California Value Municipal Income Trust (VCV) is a ETF from Invesco (US). Over the past year SPY returned +22.52% while VCV returned +12.47%. Year to date, SPY is up 13.39% versus a gain of 0.14% for VCV.
Over three years, SPY compounded at +21.36% per year against +10.85% for VCV; over five years the annualized figures are +13.19% and -0.15% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs +0.53%. 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 14.3% for VCV. 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 -63.9% for VCV. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VCV charges 3.57%. On a $10,000 position that is $9 vs $357 annually, a gap of $348 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 7.48% for VCV.
Holdings Overlap
SPY and VCV share 0 holdings out of 591 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 VCV?
SPY has an expense ratio of 0.09% while VCV charges 3.57%. SPY is the cheaper option. On a $10,000 investment, that is $348 per year of difference.
Which performed better, SPY or VCV?
Over the past year SPY returned +22.52% vs +12.47% for VCV, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.84% vs +0.53% for VCV. Past performance does not guarantee future results.
Which is riskier, SPY or VCV?
SPY has been the more volatile fund at 15.3% annualized versus 14.3% for VCV. Worst drawdown: SPY -56.5% vs VCV -63.9%.
Should I hold both SPY and VCV?
SPY and VCV have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VCV?
SPY and VCV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, SPY or VCV?
SPY yields 1.01% while VCV yields 7.48%, so VCV currently pays the higher dividend yield.
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