SPY vs VXF
State Street SPDR S&P 500 ETF Trust vs Vanguard Extended Market ETF
Quick Verdict
VXF has a lower expense ratio. VXF delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | SPY | VXF | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.05% | |
| AUM | $821.1B | $30.5B | |
| Dividend Yield | 1.01% | 1.03% | |
| Holdings | 505 | 3,376 | |
| YTD Return | +12.22% | +15.71% | |
| 1Y Return | +20.83% | +23.93% | |
| 3Y Return (annualized) | +21.70% | +19.90% | |
| 5Y Return (annualized) | +12.98% | +7.18% | |
| Volatility (annualized) | 15.3% | 18.7% | |
| Max Drawdown | -56.5% | -59.4% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | Dec 27, 2001 |
SPY vs VXF Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US). Over the past year SPY returned +20.83% while VXF returned +23.93%. Year to date, SPY is up 12.22% versus a gain of 15.71% for VXF.
Over three years, SPY compounded at +21.70% per year against +19.90% for VXF; over five years the annualized figures are +12.98% and +7.18% respectively. Across the full 25-year window we track, VXF has the edge at +9.01% annualized vs +8.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF. 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 VXF charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.03% for VXF.
Holdings Overlap
SPY and VXF share 4 holdings out of 3794 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or VXF?
SPY has an expense ratio of 0.09% while VXF charges 0.05%. VXF is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SPY or VXF?
Over the past year SPY returned +20.83% vs +23.93% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (25 years), SPY annualized +8.79% vs +9.01% for VXF. Past performance does not guarantee future results.
Which is riskier, SPY or VXF?
VXF has been the more volatile fund at 18.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs VXF -59.4%.
Should I hold both SPY and VXF?
SPY and VXF 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 VXF?
SPY and VXF share 4 common holdings with a 0.1% weight overlap. Combined, they hold 3794 unique securities.
Which pays a higher dividend, SPY or VXF?
SPY yields 1.01% while VXF yields 1.03%, so VXF currently pays the higher dividend yield.
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