SPY vs VGK
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE Europe ETF
Quick Verdict
VGK has a lower expense ratio. VGK delivered stronger 1-year returns. VGK offers more diversification with 958 holdings.
Side-by-Side Comparison
| Metric | SPY | VGK | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $789.1B | $30.0B | |
| Dividend Yield | 1.01% | 2.94% | |
| Holdings | 505 | 1,251 | |
| YTD Return | +13.68% | +11.10% | |
| 1Y Return | +21.53% | +21.87% | |
| 3Y Return (annualized) | +21.44% | +18.13% | |
| 5Y Return (annualized) | +13.18% | +9.29% | |
| Volatility (annualized) | 15.3% | 18.5% | |
| Max Drawdown | -56.5% | -67.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 4, 2005 |
SPY vs VGK Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard FTSE Europe ETF (VGK) is a ETF from Vanguard (US). Over the past year SPY returned +21.53% while VGK returned +21.87%. Year to date, SPY is up 13.68% versus a gain of 11.10% for VGK.
Over three years, SPY compounded at +21.44% per year against +18.13% for VGK; over five years the annualized figures are +13.18% and +9.29% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs +3.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -67.3% for VGK. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VGK charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.94% for VGK.
Holdings Overlap
SPY and VGK share 4 holdings out of 1457 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VGK?
SPY has an expense ratio of 0.09% while VGK charges 0.06%. VGK is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VGK?
Over the past year SPY returned +21.53% vs +21.87% for VGK, so VGK leads on 1-year performance. Over the longest common window we track (21 years), SPY annualized +8.85% vs +3.69% for VGK. Past performance does not guarantee future results.
Which is riskier, SPY or VGK?
VGK has been the more volatile fund at 18.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VGK -67.3%.
Should I hold both SPY and VGK?
SPY and VGK have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGK?
SPY and VGK share 4 common holdings with a 0.2% weight overlap. Combined, they hold 1457 unique securities.
Which pays a higher dividend, SPY or VGK?
SPY yields 1.01% while VGK yields 2.94%, so VGK currently pays the higher dividend yield.
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