SPY vs VYMI

Quick Verdict

VYMI has a lower expense ratio. VYMI delivered stronger 1-year returns. VYMI offers more diversification with 1480 holdings.

Lower Fees: VYMIHigher Returns: VYMIMore Diversified: VYMI

Side-by-Side Comparison

MetricSPYVYMIWinner
Expense Ratio0.09%0.07%
AUM$789.1B$19.5B
Dividend Yield1.01%3.69%
Holdings5051,576
YTD Return+14.47%+17.41%
1Y Return+21.96%+29.57%
3Y Return (annualized)+21.70%+23.51%
5Y Return (annualized)+13.30%+13.73%
Volatility (annualized)15.3%14.9%
Max Drawdown-56.5%-45.2%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionJan 22, 1993Feb 25, 2016

SPY vs VYMI Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Vanguard International High Dividend Yield ETF (VYMI) is a ETF from Vanguard (US). Over the past year SPY returned +21.96% while VYMI returned +29.57%. Year to date, SPY is up 14.47% versus a gain of 17.41% for VYMI.

Over three years, SPY compounded at +21.70% per year against +23.51% for VYMI; over five years the annualized figures are +13.30% and +13.73% respectively. Across the full 10-year window we track, VYMI has the edge at +9.59% annualized vs +8.87%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for VYMI. 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 -45.2% for VYMI. 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SPY charges 0.09% per year while VYMI charges 0.07%. On a $10,000 position that is $9 vs $7 annually, a gap of $2 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.69% for VYMI.

Holdings Overlap

0.2%overlap

SPY and VYMI share 3 holdings out of 1980 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SPYWeight in VYMIDifference
SLB:CW0.11%0.58%0.47%
HBAN0.06%0.11%0.05%
KR0.05%0.00%0.05%

Frequently Asked Questions

Which is cheaper, SPY or VYMI?

SPY has an expense ratio of 0.09% while VYMI charges 0.07%. VYMI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, SPY or VYMI?

Over the past year SPY returned +21.96% vs +29.57% for VYMI, so VYMI leads on 1-year performance. Over the longest common window we track (10 years), SPY annualized +8.87% vs +9.59% for VYMI. Past performance does not guarantee future results.

Which is riskier, SPY or VYMI?

SPY has been the more volatile fund at 15.3% annualized versus 14.9% for VYMI. Worst drawdown: SPY -56.5% vs VYMI -45.2%.

Should I hold both SPY and VYMI?

SPY and VYMI have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SPY and VYMI?

SPY and VYMI share 3 common holdings with a 0.2% weight overlap. Combined, they hold 1980 unique securities.

Which pays a higher dividend, SPY or VYMI?

SPY yields 1.01% while VYMI yields 3.69%, so VYMI currently pays the higher dividend yield.

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