SPY vs VFIAX
State Street SPDR S&P 500 ETF Trust vs Vanguard 500 Index Fund Admiral Class
Which is better, SPY or VFIAX?
Nearly the same fund. VFIAX costs less.
VFIAX has a lower expense ratio. SPY led over 1Y, VFIAX over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 1.00. VFIAX is less concentrated, with 36.3% of the fund in its ten largest positions against 38.0%.
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 | VFIAX |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $804.7B | $677.6B |
| Dividend Yield | 0.98% | 1.03% |
| Holdings | 505 | 506 |
| YTD Price Return | +11.87%Best | +11.82% |
| 1Y Price Return | +16.22%Best | +16.19% |
| 3Y Price Return (annualized) | +19.68% | +19.71%Best |
| 5Y Price Return (annualized) | +11.36% | +11.50%Best |
| Volatility (annualized) | 15.8% | 15.6%Best |
| Max Drawdown | -25.4%Tie | -25.4%Tie |
| $10,000 over 5 years | $17,126 | $17,234Best |
| Top 10 Weight | 38.0% | 36.3%Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Nov 13, 2000 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. SPY yields 0.98% and VFIAX 1.03% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 14, 2021 to Sep 11, 2026 (5 years).
SPY vs VFIAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
SPY vs VFIAX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US). Over the past year SPY returned +16.22% while VFIAX returned +16.19%. Year to date, SPY is up 11.87% versus a gain of 11.82% for VFIAX.
Over three years, SPY compounded at +19.68% per year against +19.71% for VFIAX; over five years the annualized figures are +11.36% and +11.50% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.6% for VFIAX. 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 -25.4% for SPY and -25.4% for VFIAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 1.00. 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 VFIAX 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 0.98% against 1.03% for VFIAX.
Structure and taxes
VFIAX is a mutual fund and SPY is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
96.8% of SPY's money is in holdings VFIAX also owns. 96.5% of VFIAX's money is in holdings SPY also owns.
Most of SPY is already inside VFIAX. Owning both mostly buys the same companies twice.
493 positions in common, counted across the 504 positions we hold weights for in SPY and 500 in VFIAX, against full books of 505 and 506.
What only one of them owns
Our book lists 4 positions for VFIAX that do not appear in our book for SPY (0.3% of the fund), and 7 for SPY that do not appear in VFIAX (2.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VFIAX | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.71% | 7.50% | 0.21% |
| AAPLApple, Inc | 6.83% | 6.57% | 0.26% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.50% | 4.29% | 1.21% |
| AMZNAmazon.Com Inc | 4.08% | 3.61% | 0.47% |
| GOOGLAlphabet A Usd 0.001 | 3.33% | 3.24% | 0.09% |
| AVGOBroadcom Inc | 2.97% | 2.77% | 0.20% |
| GOOGAlphabet Inc | 2.67% | 2.58% | 0.09% |
| METAMeta Platforms, Inc. | 1.94% | 1.91% | 0.03% |
| MUMicron Technology, Inc. | 1.51% | 2.01% | 0.50% |
| TSLATesla Inc | 1.38% | 1.83% | 0.45% |
96.8% of SPY is already inside VFIAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VFIAX?
SPY has an expense ratio of 0.09% while VFIAX charges 0.04%. VFIAX is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, SPY or VFIAX?
Over the past year SPY returned +16.22% vs +16.19% for VFIAX, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VFIAX?
SPY has been the more volatile fund at 15.8% annualized versus 15.6% for VFIAX. Worst drawdown: SPY -25.4% vs VFIAX -25.4%.
Should I hold both SPY and VFIAX?
SPY and VFIAX have a monthly-return correlation of 1.00, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and VFIAX?
96.8% of SPY's money is in holdings VFIAX also owns. 96.5% of VFIAX's is in holdings SPY also owns. They hold 493 positions in common, counted across the 504 positions we hold weights for in SPY and 500 in VFIAX.
Which pays a higher dividend, SPY or VFIAX?
SPY yields 0.98% while VFIAX yields 1.03%, so VFIAX currently pays the higher dividend yield.
Is it better to hold VFIAX or SPY in a taxable account?
SPY is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VFIAX better than SPY?
VFIAX has a lower expense ratio. SPY led over 1Y, VFIAX over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 1.00. VFIAX is less concentrated, with 36.3% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.