SPY vs VTEL
State Street SPDR S&P 500 ETF Trust vs Vanguard Long-Term Tax-Exempt Bond ETF
Quick Verdict
VTEL has a lower expense ratio. SPY delivered stronger 1-year returns. VTEL offers more diversification with 1417 holdings.
Side-by-Side Comparison
| Metric | SPY | VTEL | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.09% | |
| AUM | $789.1B | $288M | |
| Dividend Yield | 1.01% | 3.78% | |
| Holdings | 505 | 6,215 | |
| YTD Return | +14.47% | -0.94% | |
| 1Y Return | +21.96% | +4.98% | |
| 3Y Return (annualized) | +21.70% | - | |
| 5Y Return (annualized) | +13.30% | - | |
| Volatility (annualized) | 15.3% | 5.4% | |
| Max Drawdown | -56.5% | -3.5% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | May 6, 2025 |
SPY vs VTEL Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is a ETF from Vanguard (US). Over the past year SPY returned +21.96% while VTEL returned +4.98%. Year to date, SPY is up 14.47% versus a loss of 0.94% for VTEL.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.4% for VTEL. 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 -3.5% for VTEL. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTEL charges 0.09%. On a $10,000 position that is $9 vs $9 annually, a gap of $0 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.78% for VTEL.
Holdings Overlap
SPY and VTEL share 0 holdings out of 1920 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 VTEL?
SPY has an expense ratio of 0.09% while VTEL charges 0.09%. VTEL is the cheaper option. On a $10,000 investment, that is $0 per year of difference.
Which performed better, SPY or VTEL?
Over the past year SPY returned +21.96% vs +4.98% for VTEL, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.87% vs +4.65% for VTEL. Past performance does not guarantee future results.
Which is riskier, SPY or VTEL?
SPY has been the more volatile fund at 15.3% annualized versus 5.4% for VTEL. Worst drawdown: SPY -56.5% vs VTEL -3.5%.
Should I hold both SPY and VTEL?
SPY and VTEL have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTEL?
SPY and VTEL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1920 unique securities.
Which pays a higher dividend, SPY or VTEL?
SPY yields 1.01% while VTEL yields 3.78%, so VTEL currently pays the higher dividend yield.
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