SPY vs VWO
State Street SPDR S&P 500 ETF Trust vs Vanguard FTSE Emerging Markets ETF
Which is better, SPY or VWO?
SPY has been ahead.
VWO has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | VWO |
|---|---|---|
| Expense Ratio | 0.09% | 0.06%Best |
| AUM | $804.7B | $122.0B |
| Dividend Yield | 0.98% | 2.29% |
| Holdings | 505 | 6,334 |
| YTD Return | +11.52%Best | +9.25% |
| 1Y Return | +17.48%Best | +16.23% |
| 3Y Return (annualized) | +20.62%Best | +17.32% |
| 5Y Return (annualized) | +12.73%Best | +5.92% |
| Volatility (annualized) | 14.9%Best | 20.1% |
| Max Drawdown | -56.5%Best | -68.3% |
| $10,000 over 5 years | $18,205Best | $13,332 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 10, 2026 (21.5 years).
SPY vs VWO 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 21.5 years both funds cover.
SPY vs VWO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year SPY returned +17.48% while VWO returned +16.23%. Year to date, SPY is up 11.52% versus a gain of 9.25% for VWO.
Over three years, SPY compounded at +20.62% per year against +17.32% for VWO; over five years the annualized figures are +12.73% and +5.92% respectively. Across the full 22-year window we track, SPY has the edge at +9.27% annualized vs +4.92%.
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 14.9% 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 what each fund did in the worst stretch of the window measured above.
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 0.98% against 2.29% for VWO.
Holdings Overlap
We hold position weights for 504 holdings in SPY and 4,694 in VWO, totalling 100.0% and 88.0% of the two funds. That is not enough of VWO to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 504 positions we hold weights for in SPY and 4,694 in VWO, against full books of 505 and 6,334.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VWO | Difference |
|---|---|---|---|
| HAL:MBHindustan Aeronautics Ltd | 0.04% | 0.07% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of SPY and VWO 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 VWO?
SPY has an expense ratio of 0.09% while VWO charges 0.06%. VWO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SPY or VWO?
Over the past year SPY returned +17.48% vs +16.23% for VWO, so SPY leads on 1-year performance. Over the longest common window we track (22 years), SPY annualized +9.27% vs +4.92% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VWO?
VWO has been the more volatile fund at 20.1% annualized versus 14.9% 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 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 VWO?
SPY yields 0.98% while VWO yields 2.29%, so VWO currently pays the higher dividend yield.
Is VWO better than SPY?
VWO has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.