SPY vs VGM
State Street SPDR S&P 500 ETF Trust vs Invesco Trust for Investment Grade Municipals
Which is better, SPY or VGM?
Large Cap Blend against Municipal Bond.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | VGM |
|---|---|---|
| Expense Ratio | 0.09%Best | 3.13% |
| AUM | $804.7B | $3,008.32 |
| Dividend Yield | 0.98% | 7.65% |
| Holdings | 505 | 534 |
| YTD Return | +13.51%Best | -7.41% |
| 1Y Return | +18.19%Best | -1.97% |
| 3Y Return (annualized) | +23.29%Best | +9.13% |
| 5Y Return (annualized) | +13.21%Best | -2.35% |
| Volatility (annualized) | 15.2% | 12.5%Best |
| Max Drawdown | -56.5%Best | -58.5% |
| $10,000 over 5 years | $18,596Best | $8,879 |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Municipal Bond |
| Inception | Jan 22, 1993 | Jan 24, 1992 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 2, 1996 to Sep 25, 2026 (30.7 years).
SPY vs VGM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs VGM Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Invesco Trust for Investment Grade Municipals (VGM) is an ETF from Invesco (US). Over the past year SPY returned +18.19% while VGM returned -1.97%. Year to date, SPY is up 13.51% versus a loss of 7.41% for VGM.
Over three years, SPY compounded at +23.29% per year against +9.13% for VGM; over five years the annualized figures are +13.21% and -2.35% respectively. Across the full 31-year window we track, SPY has the edge at +8.80% annualized vs -0.67%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 12.5% for VGM. 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 -58.5% for VGM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.24. They move largely independently of each other.
Fees and Cost Over Time
SPY charges 0.09% per year while VGM charges 3.13%. On a $10,000 position that is $9 vs $313 annually, a gap of $304 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 7.65% for VGM.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 1 in VGM, totalling 99.9% and 0.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 63 days apart, SPY as of Sep 1, 2026 and VGM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 1 in VGM, against full books of 505 and 534.
You are not choosing between two funds in isolation.
Whichever of SPY and VGM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VGM?
SPY has an expense ratio of 0.09% while VGM charges 3.13%. SPY is the cheaper option, by $304 a year on a $10,000 investment.
Which performed better, SPY or VGM?
Over the past year SPY returned +18.19% vs -1.97% for VGM, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.80% vs -0.67% for VGM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VGM?
SPY has been the more volatile fund at 15.2% annualized versus 12.5% for VGM. Worst drawdown: SPY -56.5% vs VGM -58.5%.
Should I hold both SPY and VGM?
SPY and VGM have a monthly-return correlation of 0.24, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or VGM?
SPY yields 0.98% while VGM yields 7.65%, so VGM currently pays the higher dividend yield.
Is VGM better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.