SPY vs VUSE
State Street SPDR S&P 500 ETF Trust vs Vident US Equity Strategy ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | VUSE | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.50% | |
| AUM | $821.1B | $699M | |
| Dividend Yield | 1.01% | 0.46% | |
| Holdings | 505 | 128 | |
| YTD Return | +13.21% | +12.08% | |
| 1Y Return | +19.87% | +14.15% | |
| 3Y Return (annualized) | +21.16% | +15.89% | |
| 5Y Return (annualized) | +12.74% | +11.72% | |
| Volatility (annualized) | 15.3% | 17.3% | |
| Max Drawdown | -56.5% | -45.5% | |
| Fund Family | State Street Investment Management | Vident Financial | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Jan 22, 2014 |
SPY vs VUSE Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vident US Equity Strategy ETF (VUSE) is a ETF from Vident Financial. Over the past year SPY returned +19.87% while VUSE returned +14.15%. Year to date, SPY is up 13.21% versus a gain of 12.08% for VUSE.
Over three years, SPY compounded at +21.16% per year against +15.89% for VUSE; over five years the annualized figures are +12.74% and +11.72% respectively. Across the full 13-year window we track, VUSE has the edge at +9.42% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUSE has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 15.3% 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 -56.5% for SPY and -45.5% for VUSE. 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 0.91. 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 VUSE charges 0.50%. On a $10,000 position that is $9 vs $50 annually, a gap of $41 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.46% for VUSE.
Holdings Overlap
SPY and VUSE share 70 holdings out of 561 unique holdings combined, representing a 33.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VUSE?
SPY has an expense ratio of 0.09% while VUSE charges 0.50%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, SPY or VUSE?
Over the past year SPY returned +19.87% vs +14.15% for VUSE, so SPY leads on 1-year performance. Over the longest common window we track (13 years), SPY annualized +8.82% vs +9.42% for VUSE. Past performance does not guarantee future results.
Which is riskier, SPY or VUSE?
VUSE has been the more volatile fund at 17.3% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VUSE -45.5%.
Should I hold both SPY and VUSE?
SPY and VUSE have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SPY and VUSE?
SPY and VUSE share 70 common holdings with a 33.5% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, SPY or VUSE?
SPY yields 1.01% while VUSE yields 0.46%, so SPY currently pays the higher dividend yield.
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