SPY vs VLT
State Street SPDR S&P 500 ETF Trust vs Invesco High Income Trust II
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 1.95% | |
| AUM | $789.1B | $3,093.5 | |
| Dividend Yield | 1.01% | 10.36% | |
| Holdings | 505 | 270 | |
| YTD Return | +13.39% | -4.01% | |
| 1Y Return | +22.52% | +0.74% | |
| 3Y Return (annualized) | +21.36% | +8.87% | |
| 5Y Return (annualized) | +13.19% | +2.21% | |
| Volatility (annualized) | 15.3% | 19.9% | |
| Max Drawdown | -56.5% | -89.4% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Apr 28, 1989 |
SPY vs VLT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco High Income Trust II (VLT) is a ETF from Invesco (US). Over the past year SPY returned +22.52% while VLT returned +0.74%. Year to date, SPY is up 13.39% versus a loss of 4.01% for VLT.
Over three years, SPY compounded at +21.36% per year against +8.87% for VLT; over five years the annualized figures are +13.19% and +2.21% respectively. Across the full 31-year window we track, SPY has the edge at +8.84% annualized vs -2.93%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLT has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 15.3% for SPY. 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 -89.4% for VLT. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VLT charges 1.95%. On a $10,000 position that is $9 vs $195 annually, a gap of $186 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 10.36% for VLT.
Holdings Overlap
SPY and VLT share 0 holdings out of 701 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 VLT?
SPY has an expense ratio of 0.09% while VLT charges 1.95%. SPY is the cheaper option. On a $10,000 investment, that is $186 per year of difference.
Which performed better, SPY or VLT?
Over the past year SPY returned +22.52% vs +0.74% for VLT, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.84% vs -2.93% for VLT. Past performance does not guarantee future results.
Which is riskier, SPY or VLT?
VLT has been the more volatile fund at 19.9% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VLT -89.4%.
Should I hold both SPY and VLT?
SPY and VLT have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VLT?
SPY and VLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, SPY or VLT?
SPY yields 1.01% while VLT yields 10.36%, so VLT currently pays the higher dividend yield.
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