SPY vs VTIP
State Street SPDR S&P 500 ETF Trust vs Vanguard Short-Term Inflation-Protected Securities ETF
Quick Verdict
VTIP has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VTIP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $789.1B | $19.3B | |
| Dividend Yield | 1.01% | 3.60% | |
| Holdings | 505 | 27 | |
| YTD Return | +13.79% | +1.87% | |
| 1Y Return | +23.66% | +3.01% | |
| 3Y Return (annualized) | +21.40% | +5.37% | |
| 5Y Return (annualized) | +13.37% | +3.39% | |
| Volatility (annualized) | 15.3% | 2.4% | |
| Max Drawdown | -56.5% | -7.1% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Oct 12, 2012 |
SPY vs VTIP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is a ETF from Vanguard (US). Over the past year SPY returned +23.66% while VTIP returned +3.01%. Year to date, SPY is up 13.79% versus a gain of 1.87% for VTIP.
Over three years, SPY compounded at +21.40% per year against +5.37% for VTIP; over five years the annualized figures are +13.37% and +3.39% respectively. Across the full 14-year window we track, SPY has the edge at +8.85% annualized vs +1.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.4% for VTIP. 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 -7.1% for VTIP. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTIP 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 3.60% for VTIP.
Holdings Overlap
SPY and VTIP share 0 holdings out of 526 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 VTIP?
SPY has an expense ratio of 0.09% while VTIP charges 0.03%. VTIP is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SPY or VTIP?
Over the past year SPY returned +23.66% vs +3.01% for VTIP, so SPY leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +8.85% vs +1.58% for VTIP. Past performance does not guarantee future results.
Which is riskier, SPY or VTIP?
SPY has been the more volatile fund at 15.3% annualized versus 2.4% for VTIP. Worst drawdown: SPY -56.5% vs VTIP -7.1%.
Should I hold both SPY and VTIP?
SPY and VTIP have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTIP?
SPY and VTIP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, SPY or VTIP?
SPY yields 1.01% while VTIP yields 3.60%, so VTIP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.