SPY vs VTWO
State Street SPDR S&P 500 ETF Trust vs Vanguard Russell 2000 ETF
Which is better, SPY or VTWO?
Large Cap Blend against Small Cap Blend.
VTWO has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VTWO over 1Y.
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 | VTWO |
|---|---|---|
| Expense Ratio | 0.09% | 0.06%Best |
| AUM | $804.7B | $17.5B |
| Dividend Yield | 0.98% | 1.10% |
| Holdings | 505 | 2,015 |
| YTD Return | +13.81% | +16.37%Best |
| 1Y Return | +16.94% | +18.90%Best |
| 3Y Return (annualized) | +22.84%Best | +19.14% |
| 5Y Return (annualized) | +13.50%Best | +6.93% |
| Volatility (annualized) | 14.1%Best | 19.1% |
| Max Drawdown | -34.1%Best | -42.4% |
| $10,000 over 5 years | $18,836Best | $13,980 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Small Cap Blend |
| Inception | Jan 22, 1993 | Sep 20, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Sep 22, 2026 (16 years).
SPY vs VTWO 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 16 years both funds cover.
SPY vs VTWO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US). Over the past year SPY returned +16.94% while VTWO returned +18.90%. Year to date, SPY is up 13.81% versus a gain of 16.37% for VTWO.
Over three years, SPY compounded at +22.84% per year against +19.14% for VTWO; over five years the annualized figures are +13.50% and +6.93% respectively. Across the full 16-year window we track, SPY has the edge at +13.27% annualized vs +10.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 14.1% 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 -34.1% for SPY and -42.4% for VTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VTWO charges 0.06%. On a $10,000 position that is $9 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 1.10% for VTWO.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 1,633 in VTWO, totalling 99.9% and 89.7% 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 1,633 in VTWO, against full books of 505 and 2,015.
You are not choosing between two funds in isolation.
Whichever of SPY and VTWO 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 VTWO?
SPY has an expense ratio of 0.09% while VTWO charges 0.06%. VTWO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SPY or VTWO?
Over the past year SPY returned +16.94% vs +18.90% for VTWO, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), SPY annualized +13.27% vs +10.37% for VTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VTWO?
VTWO has been the more volatile fund at 19.1% annualized versus 14.1% for SPY. Worst drawdown: SPY -34.1% vs VTWO -42.4%.
Should I hold both SPY and VTWO?
SPY and VTWO have a monthly-return correlation of 0.87, 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 VTWO?
SPY yields 0.98% while VTWO yields 1.10%, so VTWO currently pays the higher dividend yield.
Is VTWO better than SPY?
VTWO has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VTWO over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.