SPY vs VTEC
State Street SPDR S&P 500 ETF Trust vs Vanguard California Tax-Exempt Bond ETF
Quick Verdict
VTEC has a lower expense ratio. SPY delivered stronger 1-year returns. VTEC offers more diversification with 702 holdings.
Side-by-Side Comparison
| Metric | SPY | VTEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $789.1B | $2.8B | |
| Dividend Yield | 1.01% | 3.14% | |
| Holdings | 505 | 3,617 | |
| YTD Return | +13.79% | -1.15% | |
| 1Y Return | +23.66% | +2.99% | |
| 3Y Return (annualized) | +21.40% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.3% | 3.9% | |
| Max Drawdown | -56.5% | -4.5% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Jan 26, 2024 |
SPY vs VTEC Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard California Tax-Exempt Bond ETF (VTEC) is a ETF from Vanguard (US). Over the past year SPY returned +23.66% while VTEC returned +2.99%. Year to date, SPY is up 13.79% versus a loss of 1.15% for VTEC.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.9% for VTEC. 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 -4.5% for VTEC. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTEC 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 3.14% for VTEC.
Holdings Overlap
SPY and VTEC share 0 holdings out of 1205 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 VTEC?
SPY has an expense ratio of 0.09% while VTEC charges 0.06%. VTEC is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VTEC?
Over the past year SPY returned +23.66% vs +2.99% for VTEC, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.85% vs +1.57% for VTEC. Past performance does not guarantee future results.
Which is riskier, SPY or VTEC?
SPY has been the more volatile fund at 15.3% annualized versus 3.9% for VTEC. Worst drawdown: SPY -56.5% vs VTEC -4.5%.
Should I hold both SPY and VTEC?
SPY and VTEC have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTEC?
SPY and VTEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1205 unique securities.
Which pays a higher dividend, SPY or VTEC?
SPY yields 1.01% while VTEC yields 3.14%, so VTEC currently pays the higher dividend yield.
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