SPY vs VFMO
State Street SPDR S&P 500 ETF Trust vs Vanguard US Momentum Factor ETF
Which is better, SPY or VFMO?
Large Cap Blend against Mid Cap Growth.
SPY has a lower expense ratio. SPY led over 5Y, VFMO over 1Y, 3Y and the full window. VFMO is less concentrated, with 8.8% of the fund in its ten largest positions against 37.8%.
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 | VFMO |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.13% |
| AUM | $804.7B | $1.9B |
| Dividend Yield | 0.98% | 0.62% |
| Holdings | 505 | 673 |
| YTD Return | +13.82% | +17.96%Best |
| 1Y Return | +16.96% | +19.23%Best |
| 3Y Return (annualized) | +22.97% | +27.56%Best |
| 5Y Return (annualized) | +13.73%Best | +13.50% |
| Volatility (annualized) | 16.4%Best | 20.2% |
| Max Drawdown | -34.1%Best | -36.8% |
| $10,000 over 5 years | $19,027Best | $18,836 |
| Top 10 Weight | 37.8% | 8.8%Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Growth |
| Inception | Jan 22, 1993 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Sep 21, 2026 (8.6 years).
SPY vs VFMO 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 8.6 years both funds cover.
SPY vs VFMO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard US Momentum Factor ETF (VFMO) is an ETF from Vanguard (US). Over the past year SPY returned +16.96% while VFMO returned +19.23%. Year to date, SPY is up 13.82% versus a gain of 17.96% for VFMO.
Over three years, SPY compounded at +22.97% per year against +27.56% for VFMO; over five years the annualized figures are +13.73% and +13.50% respectively. Across the full 9-year window we track, VFMO has the edge at +14.48% annualized vs +13.86%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 16.4% 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 -34.1% for SPY and -36.8% for VFMO. 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 VFMO charges 0.13%. On a $10,000 position that is $9 vs $13 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 0.62% for VFMO.
Holdings Overlap
35.8% of SPY's money is in holdings VFMO also owns. 43.0% of VFMO's money is in holdings SPY also owns.
The two portfolios partly overlap.
130 positions in common, counted across the 504 positions we hold weights for in SPY and 694 in VFMO, against full books of 505 and 673.
What only one of them owns
Our book lists 505 positions for VFMO that do not appear in our book for SPY (51.3% of the fund), and 367 for SPY that do not appear in VFMO (63.5%).
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 VFMO | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.26% | 0.44% | 6.82% |
| GOOGAlphabet Inc | 2.39% | 0.20% | 2.19% |
| MUMicron Technology, Inc. | 1.60% | 0.89% | 0.71% |
| AMDAdvanced Micro Devices Inc | 1.14% | 0.81% | 0.33% |
| LLYEli Lilly & Co. | 1.40% | 0.53% | 0.87% |
| JNJJohnson & Johnson - Common | 0.99% | 0.76% | 0.23% |
| XOMExxon Mobil Corp. | 1.04% | 0.59% | 0.45% |
| INTCIntel Corporation | 0.67% | 0.72% | 0.05% |
| SNDKSandisk Corp/De | 0.35% | 1.03% | 0.68% |
| MRKMerck & Company Inc | 0.56% | 0.75% | 0.19% |
43.0% of VFMO is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, SPY or VFMO?
SPY has an expense ratio of 0.09% while VFMO charges 0.13%. SPY is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, SPY or VFMO?
Over the past year SPY returned +16.96% vs +19.23% for VFMO, so VFMO leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +13.86% vs +14.48% for VFMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VFMO?
VFMO has been the more volatile fund at 20.2% annualized versus 16.4% for SPY. Worst drawdown: SPY -34.1% vs VFMO -36.8%.
Should I hold both SPY and VFMO?
SPY and VFMO 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.
What is the holdings overlap between SPY and VFMO?
43.0% of VFMO's money is in holdings SPY also owns. 43.0% of VFMO's is in holdings SPY also owns. They hold 130 positions in common, counted across the 504 positions we hold weights for in SPY and 694 in VFMO.
Which pays a higher dividend, SPY or VFMO?
SPY yields 0.98% while VFMO yields 0.62%, so SPY currently pays the higher dividend yield.
Is VFMO better than SPY?
SPY has a lower expense ratio. SPY led over 5Y, VFMO over 1Y, 3Y and the full window. VFMO is less concentrated, with 8.8% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.