SPY vs VFMV
State Street SPDR S&P 500 ETF Trust vs Vanguard US Minimum Volatility ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VFMV | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.13% | |
| AUM | $789.1B | $418M | |
| Dividend Yield | 1.01% | 1.49% | |
| Holdings | 505 | 182 | |
| YTD Return | +14.47% | +12.63% | |
| 1Y Return | +21.96% | +12.88% | |
| 3Y Return (annualized) | +21.70% | +14.95% | |
| 5Y Return (annualized) | +13.30% | +9.29% | |
| Volatility (annualized) | 15.3% | 13.3% | |
| Max Drawdown | -56.5% | -33.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Feb 13, 2018 |
SPY vs VFMV Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard US Minimum Volatility ETF (VFMV) is a ETF from Vanguard (US). Over the past year SPY returned +21.96% while VFMV returned +12.88%. Year to date, SPY is up 14.47% versus a gain of 12.63% for VFMV.
Over three years, SPY compounded at +21.70% per year against +14.95% for VFMV; over five years the annualized figures are +13.30% and +9.29% respectively. Across the full 9-year window we track, VFMV has the edge at +10.00% annualized vs +8.87%. 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 13.3% for VFMV. 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 -33.6% for VFMV. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VFMV 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 1.01% against 1.49% for VFMV.
Holdings Overlap
SPY and VFMV share 115 holdings out of 567 unique holdings combined, representing a 26.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VFMV?
SPY has an expense ratio of 0.09% while VFMV charges 0.13%. SPY is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or VFMV?
Over the past year SPY returned +21.96% vs +12.88% for VFMV, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +8.87% vs +10.00% for VFMV. Past performance does not guarantee future results.
Which is riskier, SPY or VFMV?
SPY has been the more volatile fund at 15.3% annualized versus 13.3% for VFMV. Worst drawdown: SPY -56.5% vs VFMV -33.6%.
Should I hold both SPY and VFMV?
SPY and VFMV have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VFMV?
SPY and VFMV share 115 common holdings with a 26.7% weight overlap. Combined, they hold 567 unique securities.
Which pays a higher dividend, SPY or VFMV?
SPY yields 1.01% while VFMV yields 1.49%, so VFMV currently pays the higher dividend yield.
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