SPY vs VMLUX
State Street SPDR S&P 500 ETF Trust vs Vanguard Limited Term Tax-Exempt Fund admiral class
Quick Verdict
VMLUX has a lower expense ratio. SPY delivered stronger 1-year returns. VMLUX offers more diversification with 915 holdings.
Side-by-Side Comparison
| Metric | SPY | VMLUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $789.1B | $34.1B | |
| Dividend Yield | 1.01% | 2.89% | |
| Holdings | 505 | 7,110 | |
| YTD Return | +13.68% | -0.64% | |
| 1Y Return | +21.53% | -0.36% | |
| 3Y Return (annualized) | +21.44% | +0.78% | |
| 5Y Return (annualized) | +13.18% | -0.58% | |
| Volatility (annualized) | 15.3% | 2.8% | |
| Max Drawdown | -56.5% | -8.5% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Feb 12, 2001 |
SPY vs VMLUX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Limited Term Tax-Exempt Fund admiral class (VMLUX) is a mutual fund from Vanguard (US). Over the past year SPY returned +21.53% while VMLUX returned -0.36%. Year to date, SPY is up 13.68% versus a loss of 0.64% for VMLUX.
Over three years, SPY compounded at +21.44% per year against +0.78% for VMLUX; over five years the annualized figures are +13.18% and -0.58% respectively. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs -0.58%. 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 2.8% for VMLUX. 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 -8.5% for VMLUX. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VMLUX charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 2.89% for VMLUX.
Holdings Overlap
SPY and VMLUX share 0 holdings out of 1418 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 VMLUX?
SPY has an expense ratio of 0.09% while VMLUX charges 0.09%. VMLUX is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SPY or VMLUX?
Over the past year SPY returned +21.53% vs -0.36% for VMLUX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.85% vs -0.58% for VMLUX. Past performance does not guarantee future results.
Which is riskier, SPY or VMLUX?
SPY has been the more volatile fund at 15.3% annualized versus 2.8% for VMLUX. Worst drawdown: SPY -56.5% vs VMLUX -8.5%.
Should I hold both SPY and VMLUX?
SPY and VMLUX have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VMLUX?
SPY and VMLUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1418 unique securities.
Which pays a higher dividend, SPY or VMLUX?
SPY yields 1.01% while VMLUX yields 2.89%, so VMLUX currently pays the higher dividend yield.
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