SPY vs VEGA

SPY vs VEGA
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSPYVEGAWinner
Expense Ratio0.09%1.25%
AUM$821.1B$93M
Dividend Yield1.01%1.27%
Holdings50513
YTD Return+14.24%+8.64%
1Y Return+21.71%+14.57%
3Y Return (annualized)+22.10%+13.87%
5Y Return (annualized)+13.21%+6.82%
Volatility (annualized)15.3%9.8%
Max Drawdown-56.5%-28.4%
Fund FamilyState Street Investment ManagementAdvisor Shares
CategoryEquityAlternative
InceptionJan 22, 1993Sep 17, 2012

SPY vs VEGA Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and AdvisorShares STAR Global Buy-Write ETF (VEGA) is a ETF from Advisor Shares. Over the past year SPY returned +21.71% while VEGA returned +14.57%. Year to date, SPY is up 14.24% versus a gain of 8.64% for VEGA.

Over three years, SPY compounded at +22.10% per year against +13.87% for VEGA; over five years the annualized figures are +13.21% and +6.82% respectively. Across the full 14-year window we track, SPY has the edge at +8.86% annualized vs +6.20%. 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 9.8% for VEGA. 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 -28.4% for VEGA. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SPY charges 0.09% per year while VEGA charges 1.25%. On a $10,000 position that is $9 vs $125 annually, a gap of $116 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.27% for VEGA.

Holdings Overlap

0.0%overlap

SPY and VEGA share 0 holdings out of 514 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 VEGA?

SPY has an expense ratio of 0.09% while VEGA charges 1.25%. SPY is the cheaper option. On a $10,000 investment, that is $116 per year of difference.

Which performed better, SPY or VEGA?

Over the past year SPY returned +21.71% vs +14.57% for VEGA, so SPY leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +8.86% vs +6.20% for VEGA. Past performance does not guarantee future results.

Which is riskier, SPY or VEGA?

SPY has been the more volatile fund at 15.3% annualized versus 9.8% for VEGA. Worst drawdown: SPY -56.5% vs VEGA -28.4%.

Should I hold both SPY and VEGA?

SPY and VEGA have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between SPY and VEGA?

SPY and VEGA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 514 unique securities.

Which pays a higher dividend, SPY or VEGA?

SPY yields 1.01% while VEGA yields 1.27%, so VEGA currently pays the higher dividend yield.

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