SPY vs VRP
State Street SPDR S&P 500 ETF Trust vs Invesco Variable Rate Preferred ETF
Which is better, SPY or VRP?
Large Cap Blend against Preferred Stock.
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 | VRP |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.50% |
| AUM | $804.7B | $3.0B |
| Dividend Yield | 0.98% | 6.09% |
| Holdings | 505 | 343 |
| YTD Return | +12.09%Best | +1.93% |
| 1Y Return | +16.29%Best | +2.72% |
| 3Y Return (annualized) | +21.20%Best | +8.41% |
| 5Y Return (annualized) | +13.37%Best | +4.03% |
| Volatility (annualized) | 14.7% | 7.4%Best |
| Max Drawdown | -34.1%Best | -46.2% |
| $10,000 over 5 years | $18,728Best | $12,184 |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Equity | Allocation/Balanced |
| Style | Large Cap Blend | Preferred Stock |
| Inception | Jan 22, 1993 | May 1, 2014 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Sep 18, 2026 (12.4 years).
SPY vs VRP 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 covers the 12.4 years both funds cover.
SPY vs VRP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US). Over the past year SPY returned +16.29% while VRP returned +2.72%. Year to date, SPY is up 12.09% versus a gain of 1.93% for VRP.
Over three years, SPY compounded at +21.20% per year against +8.41% for VRP; over five years the annualized figures are +13.37% and +4.03% respectively. Across the full 12-year window we track, SPY has the edge at +12.62% annualized vs +2.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -34.1% for SPY and -46.2% for VRP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.98% against 6.09% for VRP.
Holdings Overlap
At least 6.2% of SPY's money is in holdings VRP also owns.
Stated as a floor: for VRP, our book for it covers 72.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and VRP share little of their money.
32 positions in common, counted across the 504 positions we hold weights for in SPY and 265 in VRP, against full books of 505 and 343.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VRP | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.45% | 1.05% | 0.40% |
| BACBank of America Corp.: Financials | 0.62% | 1.06% | 0.44% |
| WFCWells Fargo & Co. | 0.40% | 0.77% | 0.37% |
| CVSCvs Corp | 0.19% | 0.83% | 0.64% |
| VZVerizon Communic | 0.32% | 0.68% | 0.36% |
| AXPAmerican Express Co. | 0.26% | 0.56% | 0.30% |
| SOSouthern Co. | 0.15% | 0.64% | 0.49% |
| NEENextera Energy Inc | 0.26% | 0.51% | 0.25% |
| GSGoldman Sachs Group, Inc. (The), Series V | 0.45% | 0.26% | 0.19% |
| CCitigroup Inc 6.875 11/73 6.88 2173-11-15 | 0.34% | 0.35% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of SPY and VRP 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 VRP?
SPY has an expense ratio of 0.09% while VRP charges 0.50%. SPY is the cheaper option, by $41 a year on a $10,000 investment.
Which performed better, SPY or VRP?
Over the past year SPY returned +16.29% vs +2.72% for VRP, so SPY leads on 1-year performance. Over the longest common window we track (12 years), SPY annualized +12.62% vs +2.27% for VRP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VRP?
SPY has been the more volatile fund at 14.7% annualized versus 7.4% for VRP. Worst drawdown: SPY -34.1% vs VRP -46.2%.
Should I hold both SPY and VRP?
SPY and VRP have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SPY and VRP?
At least 6.2% of SPY's money is in holdings VRP also owns. Our book for VRP is partial, so the real figure is this or higher. They hold 32 positions in common, counted across the 504 positions we hold weights for in SPY and 265 in VRP.
Which pays a higher dividend, SPY or VRP?
SPY yields 0.98% while VRP yields 6.09%, so VRP currently pays the higher dividend yield.
Is VRP 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.