SPY vs VTEI
State Street SPDR S&P 500 ETF Trust vs Vanguard Intermediate-Term Tax-Exempt Bond ETF
Quick Verdict
VTEI has a lower expense ratio. SPY delivered stronger 1-year returns. VTEI offers more diversification with 1768 holdings.
Side-by-Side Comparison
| Metric | SPY | VTEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.08% | |
| AUM | $789.1B | $1.5B | |
| Dividend Yield | 1.01% | 3.04% | |
| Holdings | 505 | 10,147 | |
| YTD Return | +14.47% | -1.21% | |
| 1Y Return | +21.96% | +2.17% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +13.30% | - | |
| Volatility (annualized) | 15.3% | 3.4% | |
| Max Drawdown | -56.5% | -3.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 22, 1993 | Jan 26, 2024 |
SPY vs VTEI Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is a ETF from Vanguard (US). Over the past year SPY returned +21.96% while VTEI returned +2.17%. Year to date, SPY is up 14.47% versus a loss of 1.21% for VTEI.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.4% for VTEI. 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 -3.6% for VTEI. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTEI charges 0.08%. On a $10,000 position that is $9 vs $8 annually, a gap of $1 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.04% for VTEI.
Holdings Overlap
SPY and VTEI share 0 holdings out of 2271 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 VTEI?
SPY has an expense ratio of 0.09% while VTEI charges 0.08%. VTEI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SPY or VTEI?
Over the past year SPY returned +21.96% vs +2.17% for VTEI, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SPY annualized +8.87% vs +1.94% for VTEI. Past performance does not guarantee future results.
Which is riskier, SPY or VTEI?
SPY has been the more volatile fund at 15.3% annualized versus 3.4% for VTEI. Worst drawdown: SPY -56.5% vs VTEI -3.6%.
Should I hold both SPY and VTEI?
SPY and VTEI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTEI?
SPY and VTEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2271 unique securities.
Which pays a higher dividend, SPY or VTEI?
SPY yields 1.01% while VTEI yields 3.04%, so VTEI currently pays the higher dividend yield.
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