SPY vs VDIGX
State Street SPDR S&P 500 ETF Trust vs Vanguard Dividend Growth Fund Investor Class
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 | VDIGX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.22% | |
| AUM | $789.1B | $36.4B | |
| Dividend Yield | 1.01% | 1.87% | |
| Holdings | 505 | 55 | |
| YTD Return | +13.39% | -0.12% | |
| 1Y Return | +22.52% | -8.96% | |
| 3Y Return (annualized) | +21.36% | -3.11% | |
| 5Y Return (annualized) | +13.19% | -2.91% | |
| Volatility (annualized) | 15.3% | 16.1% | |
| Max Drawdown | -56.5% | -32.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | May 15, 1992 |
SPY vs VDIGX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund from Vanguard (US). Over the past year SPY returned +22.52% while VDIGX returned -8.96%. Year to date, SPY is up 13.39% versus a loss of 0.12% for VDIGX.
Over three years, SPY compounded at +21.36% per year against -3.11% for VDIGX; over five years the annualized figures are +13.19% and -2.91% respectively. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs -2.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDIGX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.3% 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 -32.6% for VDIGX. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VDIGX charges 0.22%. On a $10,000 position that is $9 vs $22 annually, a gap of $13 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.87% for VDIGX.
Holdings Overlap
SPY and VDIGX share 44 holdings out of 506 unique holdings combined, representing a 27.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VDIGX?
SPY has an expense ratio of 0.09% while VDIGX charges 0.22%. SPY is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, SPY or VDIGX?
Over the past year SPY returned +22.52% vs -8.96% for VDIGX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.84% vs -2.91% for VDIGX. Past performance does not guarantee future results.
Which is riskier, SPY or VDIGX?
VDIGX has been the more volatile fund at 16.1% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VDIGX -32.6%.
Should I hold both SPY and VDIGX?
SPY and VDIGX have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VDIGX?
SPY and VDIGX share 44 common holdings with a 27.2% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, SPY or VDIGX?
SPY yields 1.01% while VDIGX yields 1.87%, so VDIGX currently pays the higher dividend yield.
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