SPY vs VTG
State Street SPDR S&P 500 ETF Trust vs Vanguard Total Treasury ETF
Quick Verdict
VTG has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VTG | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $821.1B | $147M | |
| Dividend Yield | 1.01% | 3.56% | |
| Holdings | 505 | 286 | |
| YTD Return | +14.24% | -0.31% | |
| 1Y Return | +21.71% | +1.71% | |
| 3Y Return (annualized) | +22.10% | - | |
| 5Y Return (annualized) | +13.21% | - | |
| Volatility (annualized) | 15.3% | 3.2% | |
| Max Drawdown | -56.5% | -2.9% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Jul 7, 2025 |
SPY vs VTG Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Total Treasury ETF (VTG) is a ETF from Vanguard (US). Over the past year SPY returned +21.71% while VTG returned +1.71%. Year to date, SPY is up 14.24% versus a loss of 0.31% for VTG.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.2% for VTG. 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 -2.9% for VTG. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTG charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.56% for VTG.
Holdings Overlap
SPY and VTG share 0 holdings out of 738 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 VTG?
SPY has an expense ratio of 0.09% while VTG charges 0.03%. VTG is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VTG?
Over the past year SPY returned +21.71% vs +1.71% for VTG, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.86% vs +2.26% for VTG. Past performance does not guarantee future results.
Which is riskier, SPY or VTG?
SPY has been the more volatile fund at 15.3% annualized versus 3.2% for VTG. Worst drawdown: SPY -56.5% vs VTG -2.9%.
Should I hold both SPY and VTG?
SPY and VTG have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTG?
SPY and VTG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 738 unique securities.
Which pays a higher dividend, SPY or VTG?
SPY yields 1.01% while VTG yields 3.56%, so VTG currently pays the higher dividend yield.
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