SPY vs VEGI

SPY vs VEGI
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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

MetricSPYVEGIWinner
Expense Ratio0.09%0.39%
AUM$821.1B$147M
Dividend Yield1.01%1.89%
Holdings505159
YTD Return+12.93%+14.33%
1Y Return+20.62%+12.96%
3Y Return (annualized)+22.00%+6.68%
5Y Return (annualized)+13.33%+4.57%
Volatility (annualized)15.3%16.0%
Max Drawdown-56.5%-39.7%
Fund FamilyState Street Investment ManagementiShares by BlackRock (US)
CategoryEquityEquity
InceptionJan 22, 1993Jan 31, 2012

SPY vs VEGI Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and iShares MSCI Agriculture Producers ETF (VEGI) is a ETF from iShares by BlackRock (US). Over the past year SPY returned +20.62% while VEGI returned +12.96%. Year to date, SPY is up 12.93% versus a gain of 14.33% for VEGI.

Over three years, SPY compounded at +22.00% per year against +6.68% for VEGI; over five years the annualized figures are +13.33% and +4.57% respectively. Across the full 15-year window we track, SPY has the edge at +8.82% annualized vs +4.66%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VEGI has been the more volatile fund, with annualized monthly volatility of 16.0% 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 -39.7% for VEGI. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while VEGI charges 0.39%. On a $10,000 position that is $9 vs $39 annually, a gap of $30 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.89% for VEGI.

Holdings Overlap

0.4%overlap

SPY and VEGI share 6 holdings out of 627 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in VEGIDifference
DE0.23%28.22%27.99%
CTVA0.08%9.88%9.80%
ADM0.06%7.23%7.17%
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Frequently Asked Questions

Which is cheaper, SPY or VEGI?

SPY has an expense ratio of 0.09% while VEGI charges 0.39%. SPY is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, SPY or VEGI?

Over the past year SPY returned +20.62% vs +12.96% for VEGI, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SPY annualized +8.82% vs +4.66% for VEGI. Past performance does not guarantee future results.

Which is riskier, SPY or VEGI?

VEGI has been the more volatile fund at 16.0% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VEGI -39.7%.

Should I hold both SPY and VEGI?

SPY and VEGI have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and VEGI?

SPY and VEGI share 6 common holdings with a 0.4% weight overlap. Combined, they hold 627 unique securities.

Which pays a higher dividend, SPY or VEGI?

SPY yields 1.01% while VEGI yields 1.89%, so VEGI currently pays the higher dividend yield.

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