SPY vs VGHAX
State Street SPDR S&P 500 ETF Trust vs Vanguard Health Care Fund Admiral Shares
Quick Verdict
SPY has a lower expense ratio. VGHAX delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VGHAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.27% | |
| AUM | $821.1B | $32.8B | |
| Dividend Yield | 1.01% | 6.45% | |
| Holdings | 505 | 109 | |
| YTD Return | +12.22% | +7.13% | |
| 1Y Return | +20.83% | +24.36% | |
| 3Y Return (annualized) | +21.70% | +1.32% | |
| 5Y Return (annualized) | +12.98% | -2.07% | |
| Volatility (annualized) | 15.3% | 15.7% | |
| Max Drawdown | -56.5% | -33.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Nov 12, 2001 |
SPY vs VGHAX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US). Over the past year SPY returned +20.83% while VGHAX returned +24.36%. Year to date, SPY is up 12.22% versus a gain of 7.13% for VGHAX.
Over three years, SPY compounded at +21.70% per year against +1.32% for VGHAX; over five years the annualized figures are +12.98% and -2.07% respectively. Across the full 5-year window we track, SPY has the edge at +8.79% annualized vs -2.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -33.6% for VGHAX. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VGHAX charges 0.27%. On a $10,000 position that is $9 vs $27 annually, a gap of $18 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 6.45% for VGHAX.
Holdings Overlap
SPY and VGHAX share 28 holdings out of 562 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VGHAX?
SPY has an expense ratio of 0.09% while VGHAX charges 0.27%. SPY is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, SPY or VGHAX?
Over the past year SPY returned +20.83% vs +24.36% for VGHAX, so VGHAX leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.79% vs -2.07% for VGHAX. Past performance does not guarantee future results.
Which is riskier, SPY or VGHAX?
VGHAX has been the more volatile fund at 15.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VGHAX -33.6%.
Should I hold both SPY and VGHAX?
SPY and VGHAX have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGHAX?
SPY and VGHAX share 28 common holdings with a 6.8% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, SPY or VGHAX?
SPY yields 1.01% while VGHAX yields 6.45%, so VGHAX currently pays the higher dividend yield.
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