SPY vs VEU
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE All World Ex US ETF
Quick Verdict
VEU has a lower expense ratio. VEU delivered stronger 1-year returns. VEU offers more diversification with 3,928 holdings.
Side-by-Side Comparison
| Metric | SPY | VEU | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $821.1B | $68.4B | |
| Dividend Yield | 1.01% | 2.55% | |
| Holdings | 505 | 3,928 | |
| YTD Return | +13.47% | +15.60% | |
| 1Y Return | +20.57% | +27.20% | |
| 3Y Return (annualized) | +21.83% | +20.57% | |
| 5Y Return (annualized) | +12.88% | +9.65% | |
| Volatility (annualized) | 15.3% | 17.7% | |
| Max Drawdown | -56.5% | -62.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 2, 2007 |
SPY vs VEU Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard FTSE All World Ex US ETF (VEU) is a ETF from Vanguard (US). Over the past year SPY returned +20.57% while VEU returned +27.20%. Year to date, SPY is up 13.47% versus a gain of 15.60% for VEU.
Over three years, SPY compounded at +21.83% per year against +20.57% for VEU; over five years the annualized figures are +12.88% and +9.65% respectively. Across the full 20-year window we track, SPY has the edge at +8.83% annualized vs +3.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEU has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -62.8% for VEU. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VEU charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.55% for VEU.
Holdings Overlap
SPY and VEU share 6 holdings out of 3319 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VEU?
SPY has an expense ratio of 0.09% while VEU charges 0.04%. VEU is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, SPY or VEU?
Over the past year SPY returned +20.57% vs +27.20% for VEU, so VEU leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.83% vs +3.59% for VEU. Past performance does not guarantee future results.
Which is riskier, SPY or VEU?
VEU has been the more volatile fund at 17.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VEU -62.8%.
Should I hold both SPY and VEU?
SPY and VEU have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VEU?
SPY and VEU share 6 common holdings with a 0.3% weight overlap. Combined, they hold 3319 unique securities.
Which pays a higher dividend, SPY or VEU?
SPY yields 1.01% while VEU yields 2.55%, so VEU currently pays the higher dividend yield.
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