SPY vs VGIT
State Street SPDR S&P 500 ETF Trust vs Vanguard Intermediate Term Treasury ETF
Quick Verdict
VGIT has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VGIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $821.1B | $42.4B | |
| Dividend Yield | 1.01% | 3.88% | |
| Holdings | 505 | 209 | |
| YTD Return | +12.73% | -0.15% | |
| 1Y Return | +20.06% | +1.46% | |
| 3Y Return (annualized) | +21.59% | +4.14% | |
| 5Y Return (annualized) | +12.93% | -0.01% | |
| Volatility (annualized) | 15.3% | 4.3% | |
| Max Drawdown | -56.5% | -17.2% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
SPY vs VGIT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US). Over the past year SPY returned +20.06% while VGIT returned +1.46%. Year to date, SPY is up 12.73% versus a loss of 0.15% for VGIT.
Over three years, SPY compounded at +21.59% per year against +4.14% for VGIT; over five years the annualized figures are +12.93% and -0.01% respectively. Across the full 17-year window we track, SPY has the edge at +8.80% annualized vs +0.78%. 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 4.3% for VGIT. 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 -17.2% for VGIT. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VGIT charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.88% for VGIT.
Holdings Overlap
SPY and VGIT share 0 holdings out of 588 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VGIT?
SPY has an expense ratio of 0.09% while VGIT charges 0.03%. VGIT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VGIT?
Over the past year SPY returned +20.06% vs +1.46% for VGIT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.80% vs +0.78% for VGIT. Past performance does not guarantee future results.
Which is riskier, SPY or VGIT?
SPY has been the more volatile fund at 15.3% annualized versus 4.3% for VGIT. Worst drawdown: SPY -56.5% vs VGIT -17.2%.
Should I hold both SPY and VGIT?
SPY and VGIT have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGIT?
SPY and VGIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 588 unique securities.
Which pays a higher dividend, SPY or VGIT?
SPY yields 1.01% while VGIT yields 3.88%, so VGIT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.