SPY vs VTSAX
State Street SPDR S&P 500 ETF Trust vs Vanguard Morningstar Total Stock Market Index Fund Admiral Class
Which is better, SPY or VTSAX?
Nearly the same fund. VTSAX costs less.
VTSAX has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VTSAX over 1Y. The two have moved almost in lockstep, correlation 0.99. VTSAX is less concentrated, with 34.7% of the fund in its ten largest positions against 38.9%.
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 | VTSAX |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $777.9B | $480.6B |
| Dividend Yield | 1.00% | 1.05% |
| Holdings | 1,011 | 3,517 |
| YTD Price Return | +7.63%Best | +7.59% |
| 1Y Price Return | +9.69% | +9.91%Best |
| 3Y Price Return (annualized) | +18.96%Best | +18.77% |
| 5Y Price Return (annualized) | +9.43%Best | +8.33% |
| Volatility (annualized) | 15.6%Best | 16.1% |
| Max Drawdown | -25.4%Best | -26.3% |
| $10,000 over 5 years | $15,692Best | $14,919 |
| Top 10 Weight | 38.9% | 34.7%Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Nov 13, 2000 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTSAX. Both funds are measured the same way, so the comparison holds. SPY yields 1.00% and VTSAX 1.05% on top.
Volatility and max drawdown are measured over the window both funds cover: Nov 8, 2021 to Nov 6, 2026 (5 years).
SPY vs VTSAX 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 covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
SPY vs VTSAX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Morningstar Total Stock Market Index Fund Admiral Class (VTSAX) is a mutual fund from Vanguard (US). Over the past year SPY returned +9.69% while VTSAX returned +9.91%. Year to date, SPY is up 7.63% versus a gain of 7.59% for VTSAX.
Over three years, SPY compounded at +18.96% per year against +18.77% for VTSAX; over five years the annualized figures are +9.43% and +8.33% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTSAX has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.6% for SPY. 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 -25.4% for SPY and -26.3% for VTSAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SPY charges 0.09% per year while VTSAX charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, SPY currently yields 1.00% against 1.05% for VTSAX.
Structure and taxes
VTSAX is a mutual fund and SPY is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
99.5% of SPY's money is in holdings VTSAX also owns. 87.6% of VTSAX's money is in holdings SPY also owns.
Most of SPY is already inside VTSAX. Owning both mostly buys the same companies twice.
496 positions in common, counted across the 504 positions we hold weights for in SPY and 3,410 in VTSAX, against full books of 1,011 and 3,517.
What only one of them owns
Our book lists 630 positions for VTSAX that do not appear in our book for SPY (9.2% of the fund), and 4 for SPY that do not appear in VTSAX (0.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VTSAX | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.05% | 7.13% | 0.92% |
| AAPLApple Inc | 7.53% | 6.63% | 0.90% |
| MSFTMicrosoft Corp | 5.96% | 5.20% | 0.76% |
| AMZNAmazon.Com Inc | 3.75% | 3.30% | 0.45% |
| GOOGLAlphabet Inc | 3.07% | 2.76% | 0.31% |
| AVGOBroadcom Inc | 2.48% | 2.28% | 0.20% |
| GOOGAlphabet Inc. C | 2.46% | 2.18% | 0.28% |
| METAMeta Platforms Inc | 2.45% | 2.18% | 0.27% |
| MUMicron Technology, Inc. | 1.55% | 1.64% | 0.09% |
| TSLATesla Inc | 1.56% | 1.37% | 0.19% |
99.5% of SPY is already inside VTSAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VTSAX?
SPY has an expense ratio of 0.09% while VTSAX charges 0.04%. VTSAX is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, SPY or VTSAX?
Over the past year SPY returned +9.69% vs +9.91% for VTSAX, so VTSAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VTSAX?
VTSAX has been the more volatile fund at 16.1% annualized versus 15.6% for SPY. Worst drawdown: SPY -25.4% vs VTSAX -26.3%.
Should I hold both SPY and VTSAX?
SPY and VTSAX have a monthly-return correlation of 0.99, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and VTSAX?
99.5% of SPY's money is in holdings VTSAX also owns. 87.6% of VTSAX's is in holdings SPY also owns. They hold 496 positions in common, counted across the 504 positions we hold weights for in SPY and 3,410 in VTSAX.
Which pays a higher dividend, SPY or VTSAX?
SPY yields 1.00% while VTSAX yields 1.05%, so VTSAX currently pays the higher dividend yield.
Is it better to hold VTSAX or SPY in a taxable account?
SPY is an ETF and VTSAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTSAX better than SPY?
VTSAX has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VTSAX over 1Y. The two have moved almost in lockstep, correlation 0.99. VTSAX is less concentrated, with 34.7% of the fund in its ten largest positions against 38.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.