SPY vs VGSH
State Street SPDR S&P 500 ETF Trust vs Vanguard Short Term Treasury ETF
Quick Verdict
VGSH has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VGSH | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $29.4B | |
| Dividend Yield | 1.01% | 3.87% | |
| Holdings | 505 | 94 | |
| YTD Return | +14.47% | +0.81% | |
| 1Y Return | +21.96% | +2.53% | |
| 3Y Return (annualized) | +21.70% | +4.29% | |
| 5Y Return (annualized) | +13.30% | +1.90% | |
| Volatility (annualized) | 15.3% | 1.4% | |
| Max Drawdown | -56.5% | -6.7% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
SPY vs VGSH Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Short Term Treasury ETF (VGSH) is a ETF from Vanguard (US). Over the past year SPY returned +21.96% while VGSH returned +2.53%. Year to date, SPY is up 14.47% versus a gain of 0.81% for VGSH.
Over three years, SPY compounded at +21.70% per year against +4.29% for VGSH; over five years the annualized figures are +13.30% and +1.90% respectively. Across the full 17-year window we track, SPY has the edge at +8.87% annualized vs +0.71%. 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 1.4% for VGSH. 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 -6.7% for VGSH. 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VGSH 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 3.87% for VGSH.
Holdings Overlap
SPY and VGSH share 0 holdings out of 579 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 VGSH?
SPY has an expense ratio of 0.09% while VGSH charges 0.03%. VGSH is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VGSH?
Over the past year SPY returned +21.96% vs +2.53% for VGSH, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.87% vs +0.71% for VGSH. Past performance does not guarantee future results.
Which is riskier, SPY or VGSH?
SPY has been the more volatile fund at 15.3% annualized versus 1.4% for VGSH. Worst drawdown: SPY -56.5% vs VGSH -6.7%.
Should I hold both SPY and VGSH?
SPY and VGSH have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VGSH?
SPY and VGSH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 579 unique securities.
Which pays a higher dividend, SPY or VGSH?
SPY yields 1.01% while VGSH yields 3.87%, so VGSH currently pays the higher dividend yield.
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