SPY vs VSS
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE All-World ex-US Small-Cap ETF
Quick Verdict
VSS has a lower expense ratio. SPY delivered stronger 1-year returns. VSS offers more diversification with 4,828 holdings.
Side-by-Side Comparison
| Metric | SPY | VSS | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $821.1B | $11.3B | |
| Dividend Yield | 1.01% | 3.31% | |
| Holdings | 505 | 4,828 | |
| YTD Return | +12.22% | +10.71% | |
| 1Y Return | +20.83% | +19.40% | |
| 3Y Return (annualized) | +21.70% | +17.40% | |
| 5Y Return (annualized) | +12.98% | +6.67% | |
| Volatility (annualized) | 15.3% | 17.3% | |
| Max Drawdown | -56.5% | -46.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Apr 2, 2009 |
SPY vs VSS Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a ETF from Vanguard (US). Over the past year SPY returned +20.83% while VSS returned +19.40%. Year to date, SPY is up 12.22% versus a gain of 10.71% for VSS.
Over three years, SPY compounded at +21.70% per year against +17.40% for VSS; over five years the annualized figures are +12.98% and +6.67% respectively. Across the full 17-year window we track, SPY has the edge at +8.79% annualized vs +7.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VSS has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -46.8% for VSS. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VSS charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.31% for VSS.
Holdings Overlap
SPY and VSS share 0 holdings out of 5157 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 VSS?
SPY has an expense ratio of 0.09% while VSS charges 0.06%. VSS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VSS?
Over the past year SPY returned +20.83% vs +19.40% for VSS, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +8.79% vs +7.55% for VSS. Past performance does not guarantee future results.
Which is riskier, SPY or VSS?
VSS has been the more volatile fund at 17.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VSS -46.8%.
Should I hold both SPY and VSS?
SPY and VSS have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VSS?
SPY and VSS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5157 unique securities.
Which pays a higher dividend, SPY or VSS?
SPY yields 1.01% while VSS yields 3.31%, so VSS currently pays the higher dividend yield.
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