SPY vs VIITX
State Street SPDR S&P 500 ETF Trust vs Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class
Quick Verdict
VIITX has a lower expense ratio. SPY delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.
Side-by-Side Comparison
| Metric | SPY | VIITX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.02% | |
| AUM | $821.1B | - | |
| Dividend Yield | 1.01% | 4.59% | |
| Holdings | 505 | 2,599 | |
| YTD Return | +12.22% | -1.66% | |
| 1Y Return | +20.83% | -1.16% | |
| 3Y Return (annualized) | +21.70% | +0.81% | |
| 5Y Return (annualized) | +12.98% | -2.27% | |
| Volatility (annualized) | 15.3% | 4.2% | |
| Max Drawdown | -56.5% | -15.0% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Dec 1, 1997 |
SPY vs VIITX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund from Vanguard (US). Over the past year SPY returned +20.83% while VIITX returned -1.16%. Year to date, SPY is up 12.22% versus a loss of 1.66% for VIITX.
Over three years, SPY compounded at +21.70% per year against +0.81% for VIITX; over five years the annualized figures are +12.98% and -2.27% respectively. Across the full 5-year window we track, SPY has the edge at +8.79% annualized vs -2.27%. 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 4.2% for VIITX. 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 -15.0% for VIITX. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VIITX charges 0.02%. On a $10,000 position that is $9 vs $2 annually, a gap of $7 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 4.59% for VIITX.
Holdings Overlap
SPY and VIITX share 2 holdings out of 1687 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VIITX?
SPY has an expense ratio of 0.09% while VIITX charges 0.02%. VIITX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, SPY or VIITX?
Over the past year SPY returned +20.83% vs -1.16% for VIITX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.79% vs -2.27% for VIITX. Past performance does not guarantee future results.
Which is riskier, SPY or VIITX?
SPY has been the more volatile fund at 15.3% annualized versus 4.2% for VIITX. Worst drawdown: SPY -56.5% vs VIITX -15.0%.
Should I hold both SPY and VIITX?
SPY and VIITX have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VIITX?
SPY and VIITX share 2 common holdings with a 0.1% weight overlap. Combined, they hold 1687 unique securities.
Which pays a higher dividend, SPY or VIITX?
SPY yields 1.01% while VIITX yields 4.59%, so VIITX currently pays the higher dividend yield.
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