SPY vs VEA
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE Developed Markets ETF
Which is better, SPY or VEA?
Each has led over a different period.
VEA has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VEA over 1Y.
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 | VEA |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $804.7B | $230.3B |
| Dividend Yield | 0.98% | 2.49% |
| Holdings | 505 | 3,886 |
| YTD Return | +11.97% | +14.27%Best |
| 1Y Return | +16.40% | +22.38%Best |
| 3Y Return (annualized) | +21.10%Best | +19.89% |
| 5Y Return (annualized) | +12.88%Best | +9.64% |
| Volatility (annualized) | 15.6%Best | 17.7% |
| Max Drawdown | -56.5%Best | -62.9% |
| $10,000 over 5 years | $18,327Best | $15,843 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Jul 20, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 14, 2026 (19.1 years).
SPY vs VEA 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 19.1 years both funds cover.
SPY vs VEA Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US). Over the past year SPY returned +16.40% while VEA returned +22.38%. Year to date, SPY is up 11.97% versus a gain of 14.27% for VEA.
Over three years, SPY compounded at +21.10% per year against +19.89% for VEA; over five years the annualized figures are +12.88% and +9.64% respectively. Across the full 19-year window we track, SPY has the edge at +9.35% annualized vs +3.03%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 15.6% 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 -62.9% for VEA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VEA 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 2.49% for VEA.
Holdings Overlap
At least 0.3% of SPY's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.2% 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 3,754 in VEA, against full books of 505 and 3,886.
You are not choosing between two funds in isolation.
Whichever of SPY and VEA 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 VEA?
SPY has an expense ratio of 0.09% while VEA charges 0.03%. VEA is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or VEA?
Over the past year SPY returned +16.40% vs +22.38% for VEA, so VEA leads on 1-year performance. Over the longest common window we track (19 years), SPY annualized +9.35% vs +3.03% for VEA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VEA?
VEA has been the more volatile fund at 17.7% annualized versus 15.6% for SPY. Worst drawdown: SPY -56.5% vs VEA -62.9%.
Should I hold both SPY and VEA?
SPY and VEA have a monthly-return correlation of 0.87, 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 VEA?
SPY yields 0.98% while VEA yields 2.49%, so VEA currently pays the higher dividend yield.
Is VEA better than SPY?
VEA has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VEA over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.