SPY vs VWO
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE Emerging Markets ETF
Quick Verdict
VWO has a lower expense ratio. SPY delivered stronger 1-year returns. VWO offers more diversification with 6,334 holdings.
Side-by-Side Comparison
| Metric | SPY | VWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.06% | |
| AUM | $821.1B | $122.0B | |
| Dividend Yield | 1.01% | 2.39% | |
| Holdings | 505 | 6,334 | |
| YTD Return | +12.22% | +9.40% | |
| 1Y Return | +20.83% | +19.92% | |
| 3Y Return (annualized) | +21.70% | +18.10% | |
| 5Y Return (annualized) | +12.98% | +7.28% | |
| Volatility (annualized) | 15.3% | 20.1% | |
| Max Drawdown | -56.5% | -68.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Mar 4, 2005 |
SPY vs VWO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US). Over the past year SPY returned +20.83% while VWO returned +19.92%. Year to date, SPY is up 12.22% versus a gain of 9.40% for VWO.
Over three years, SPY compounded at +21.70% per year against +18.10% for VWO; over five years the annualized figures are +12.98% and +7.28% respectively. Across the full 21-year window we track, SPY has the edge at +8.79% annualized vs +4.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SPY charges 0.09% per year while VWO 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 1.01% against 2.39% for VWO.
Holdings Overlap
SPY and VWO share 0 holdings out of 4488 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 VWO?
SPY has an expense ratio of 0.09% while VWO charges 0.06%. VWO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SPY or VWO?
Over the past year SPY returned +20.83% vs +19.92% for VWO, so SPY leads on 1-year performance. Over the longest common window we track (21 years), SPY annualized +8.79% vs +4.94% for VWO. Past performance does not guarantee future results.
Which is riskier, SPY or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VWO -68.3%.
Should I hold both SPY and VWO?
SPY and VWO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and VWO?
SPY and VWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 4488 unique securities.
Which pays a higher dividend, SPY or VWO?
SPY yields 1.01% while VWO yields 2.39%, so VWO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.