SPY vs VTIP
State Street SPDR S&P 500 ETF Trust vs Vanguard Short-Term Inflation-Protected Securities ETF
Which is better, SPY or VTIP?
SPY has been ahead.
VTIP has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | VTIP |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $804.7B | $19.8B |
| Dividend Yield | 0.98% | 4.16% |
| Holdings | 505 | 25 |
| YTD Return | +12.22%Best | +1.32% |
| 1Y Return | +16.97%Best | +1.48% |
| 3Y Return (annualized) | +21.16%Best | +5.14% |
| 5Y Return (annualized) | +13.00%Best | +3.15% |
| Volatility (annualized) | 14.2% | 2.4%Best |
| Max Drawdown | -34.1% | -7.1%Best |
| $10,000 over 5 years | $18,424Best | $11,677 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | - |
| Inception | Jan 22, 1993 | Oct 12, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 17, 2026 (13.9 years).
SPY vs VTIP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs VTIP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) is an ETF from Vanguard (US). Over the past year SPY returned +16.97% while VTIP returned +1.48%. Year to date, SPY is up 12.22% versus a gain of 1.32% for VTIP.
Over three years, SPY compounded at +21.16% per year against +5.14% for VTIP; over five years the annualized figures are +13.00% and +3.15% respectively. Across the full 14-year window we track, SPY has the edge at +13.24% annualized vs +1.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.1% for SPY and -7.1% for VTIP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.47. They move together some of the time, and apart the rest.
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 0.98% against 4.16% for VTIP.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 24 in VTIP, totalling 99.9% and 89.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 504 positions we hold weights for in SPY and 24 in VTIP, against full books of 505 and 25.
You are not choosing between two funds in isolation.
Whichever of SPY and VTIP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which performed better, SPY or VTIP?
Over the past year SPY returned +16.97% vs +1.48% for VTIP, so SPY leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +13.24% vs +1.53% for VTIP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VTIP?
SPY has been the more volatile fund at 14.2% annualized versus 2.4% for VTIP. Worst drawdown: SPY -34.1% vs VTIP -7.1%.
Should I hold both SPY and VTIP?
SPY and VTIP have a monthly-return correlation of 0.47, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SPY or VTIP?
SPY yields 0.98% while VTIP yields 4.16%, so VTIP currently pays the higher dividend yield.
Is VTIP better than SPY?
VTIP has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.