SPY vs VRP
State Street SPDR S&P 500 ETF Trust vs Invesco Variable Rate Preferred ETF
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 | VRP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.50% | |
| AUM | $789.1B | $3.0B | |
| Dividend Yield | 1.01% | 6.23% | |
| Holdings | 505 | 343 | |
| YTD Return | +13.75% | +2.15% | |
| 1Y Return | +22.91% | +4.92% | |
| 3Y Return (annualized) | +21.67% | +8.62% | |
| 5Y Return (annualized) | +13.32% | +4.15% | |
| Volatility (annualized) | 15.3% | 7.4% | |
| Max Drawdown | -56.5% | -46.2% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | Jan 22, 1993 | May 1, 2014 |
SPY vs VRP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US). Over the past year SPY returned +22.91% while VRP returned +4.92%. Year to date, SPY is up 13.75% versus a gain of 2.15% for VRP.
Over three years, SPY compounded at +21.67% per year against +8.62% for VRP; over five years the annualized figures are +13.32% and +4.15% respectively. Across the full 12-year window we track, SPY has the edge at +8.85% annualized vs +2.31%. 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 7.4% for VRP. 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 -46.2% for VRP. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VRP charges 0.50%. On a $10,000 position that is $9 vs $50 annually, a gap of $41 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 6.23% for VRP.
Holdings Overlap
SPY and VRP share 24 holdings out of 757 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VRP?
SPY has an expense ratio of 0.09% while VRP charges 0.50%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, SPY or VRP?
Over the past year SPY returned +22.91% vs +4.92% for VRP, so SPY leads on 1-year performance. Over the longest common window we track (12 years), SPY annualized +8.85% vs +2.31% for VRP. Past performance does not guarantee future results.
Which is riskier, SPY or VRP?
SPY has been the more volatile fund at 15.3% annualized versus 7.4% for VRP. Worst drawdown: SPY -56.5% vs VRP -46.2%.
Should I hold both SPY and VRP?
SPY and VRP have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VRP?
SPY and VRP share 24 common holdings with a 4.3% weight overlap. Combined, they hold 757 unique securities.
Which pays a higher dividend, SPY or VRP?
SPY yields 1.01% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.