SPY vs VLT
State Street SPDR S&P 500 ETF Trust vs Invesco High Income Trust II
Which is better, SPY or VLT?
Large Cap Blend against High Yield 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 | VLT |
|---|---|---|
| Expense Ratio | 0.09%Best | 1.95% |
| AUM | $804.7B | $3,093.5 |
| Dividend Yield | 0.98% | 10.38% |
| Holdings | 505 | 270 |
| YTD Return | +12.09%Best | -8.47% |
| 1Y Return | +16.29%Best | -7.25% |
| 3Y Return (annualized) | +21.20%Best | +8.50% |
| 5Y Return (annualized) | +13.37%Best | +1.73% |
| Volatility (annualized) | 15.3%Best | 19.9% |
| Max Drawdown | -56.5%Best | -89.4% |
| $10,000 over 5 years | $18,728Best | $10,895 |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | High Yield Bond |
| Inception | Jan 22, 1993 | Apr 28, 1989 |
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 18, 2026 (30.7 years).
SPY vs VLT 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 VLT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Invesco High Income Trust II (VLT) is an ETF from Invesco (US). Over the past year SPY returned +16.29% while VLT returned -7.25%. Year to date, SPY is up 12.09% versus a loss of 8.47% for VLT.
Over three years, SPY compounded at +21.20% per year against +8.50% for VLT; over five years the annualized figures are +13.37% and +1.73% respectively. Across the full 31-year window we track, SPY has the edge at +8.77% annualized vs -3.07%.
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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.
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 0.98% against 10.38% for VLT.
You are not choosing between two funds in isolation.
Whichever of SPY and VLT 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 VLT?
SPY has an expense ratio of 0.09% while VLT charges 1.95%. SPY is the cheaper option, by $186 a year on a $10,000 investment.
Which performed better, SPY or VLT?
Over the past year SPY returned +16.29% vs -7.25% for VLT, so SPY leads on 1-year performance. Over the longest common window we track (31 years), SPY annualized +8.77% vs -3.07% for VLT. Past performance does not guarantee future results. This is information, not a recommendation.
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 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 VLT?
SPY yields 0.98% while VLT yields 10.38%, so VLT currently pays the higher dividend yield.
Is VLT 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.