SPY vs VKQ
State Street SPDR S&P 500 ETF Trust vs Invesco Municipal Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. VKQ offers more diversification with 537 holdings.
Side-by-Side Comparison
| Metric | SPY | VKQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.77% | |
| AUM | $821.1B | $2,913.25 | |
| Dividend Yield | 1.01% | 7.67% | |
| Holdings | 505 | 537 | |
| YTD Return | +12.22% | +4.69% | |
| 1Y Return | +20.83% | +15.17% | |
| 3Y Return (annualized) | +21.70% | +9.32% | |
| 5Y Return (annualized) | +12.98% | -1.11% | |
| Volatility (annualized) | 15.3% | 13.9% | |
| Max Drawdown | -56.5% | -58.5% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Sep 27, 1991 |
SPY vs VKQ Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco Municipal Trust (VKQ) is a ETF from Invesco (US). Over the past year SPY returned +20.83% while VKQ returned +15.17%. Year to date, SPY is up 12.22% versus a gain of 4.69% for VKQ.
Over three years, SPY compounded at +21.70% per year against +9.32% for VKQ; over five years the annualized figures are +12.98% and -1.11% respectively. Across the full 31-year window we track, SPY has the edge at +8.79% annualized vs -0.17%. 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 13.9% for VKQ. 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 VKQ. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VKQ charges 1.77%. On a $10,000 position that is $9 vs $177 annually, a gap of $168 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 7.67% for VKQ.
Holdings Overlap
SPY and VKQ share 0 holdings out of 780 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 VKQ?
SPY has an expense ratio of 0.09% while VKQ charges 1.77%. SPY is the cheaper option. On a $10,000 investment, that is $168 per year of difference.
Which performed better, SPY or VKQ?
Over the past year SPY returned +20.83% vs +15.17% for VKQ, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.79% vs -0.17% for VKQ. Past performance does not guarantee future results.
Which is riskier, SPY or VKQ?
SPY has been the more volatile fund at 15.3% annualized versus 13.9% for VKQ. Worst drawdown: SPY -56.5% vs VKQ -58.5%.
Should I hold both SPY and VKQ?
SPY and VKQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VKQ?
SPY and VKQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 780 unique securities.
Which pays a higher dividend, SPY or VKQ?
SPY yields 1.01% while VKQ yields 7.67%, so VKQ currently pays the higher dividend yield.
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