SPY vs VGLT
State Street SPDR S&P 500 ETF Trust vs Vanguard Long Term Treasury ETF
Quick Verdict
VGLT has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VGLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $821.1B | $10.3B | |
| Dividend Yield | 1.01% | 4.74% | |
| Holdings | 505 | 102 | |
| YTD Return | +12.71% | -1.21% | |
| 1Y Return | +20.53% | +1.14% | |
| 3Y Return (annualized) | +21.60% | +0.89% | |
| 5Y Return (annualized) | +12.79% | -6.56% | |
| Volatility (annualized) | 15.3% | 12.4% | |
| Max Drawdown | -56.5% | -47.1% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
SPY vs VGLT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Long Term Treasury ETF (VGLT) is a ETF from Vanguard (US). Over the past year SPY returned +20.53% while VGLT returned +1.14%. Year to date, SPY is up 12.71% versus a loss of 1.21% for VGLT.
Over three years, SPY compounded at +21.60% per year against +0.89% for VGLT; over five years the annualized figures are +12.79% and -6.56% respectively. Across the full 17-year window we track, SPY has the edge at +8.80% annualized vs +0.42%. 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 12.4% for VGLT. 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 -47.1% for VGLT. 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VGLT 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 4.74% for VGLT.
Holdings Overlap
SPY and VGLT share 0 holdings out of 536 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 VGLT?
SPY has an expense ratio of 0.09% while VGLT charges 0.03%. VGLT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VGLT?
Over the past year SPY returned +20.53% vs +1.14% for VGLT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.80% vs +0.42% for VGLT. Past performance does not guarantee future results.
Which is riskier, SPY or VGLT?
SPY has been the more volatile fund at 15.3% annualized versus 12.4% for VGLT. Worst drawdown: SPY -56.5% vs VGLT -47.1%.
Should I hold both SPY and VGLT?
SPY and VGLT have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGLT?
SPY and VGLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 536 unique securities.
Which pays a higher dividend, SPY or VGLT?
SPY yields 1.01% while VGLT yields 4.74%, so VGLT currently pays the higher dividend yield.
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