SPY vs VTP
State Street SPDR S&P 500 ETF Trust vs Vanguard Total Inflation-Protected Securities ETF
Quick Verdict
VTP has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | VTP | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $789.1B | $159M | |
| Dividend Yield | 1.01% | 1.61% | |
| Holdings | 505 | 51 | |
| YTD Return | +13.79% | +0.81% | |
| 1Y Return | +23.66% | +1.98% | |
| 3Y Return (annualized) | +21.40% | - | |
| 5Y Return (annualized) | +13.37% | - | |
| Volatility (annualized) | 15.3% | 2.9% | |
| Max Drawdown | -56.5% | -1.9% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 22, 1993 | Jul 7, 2025 |
SPY vs VTP Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Total Inflation-Protected Securities ETF (VTP) is a ETF from Vanguard (US). Over the past year SPY returned +23.66% while VTP returned +1.98%. Year to date, SPY is up 13.79% versus a gain of 0.81% for VTP.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.9% for VTP. 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 -1.9% for VTP. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while VTP charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.61% for VTP.
Holdings Overlap
SPY and VTP share 0 holdings out of 546 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 VTP?
SPY has an expense ratio of 0.09% while VTP charges 0.05%. VTP is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or VTP?
Over the past year SPY returned +23.66% vs +1.98% for VTP, so SPY leads on 1-year performance. Over the longest common window we track (1 years), SPY annualized +8.85% vs +2.83% for VTP. Past performance does not guarantee future results.
Which is riskier, SPY or VTP?
SPY has been the more volatile fund at 15.3% annualized versus 2.9% for VTP. Worst drawdown: SPY -56.5% vs VTP -1.9%.
Should I hold both SPY and VTP?
SPY and VTP have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VTP?
SPY and VTP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 546 unique securities.
Which pays a higher dividend, SPY or VTP?
SPY yields 1.01% while VTP yields 1.61%, so VTP currently pays the higher dividend yield.
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