SPY vs VCLT
State Street SPDR S&P 500 ETF Trust vs Vanguard Long Term Corporate Bond ETF
Which is better, SPY or VCLT?
Large Cap Blend against Long Term Bond.
VCLT 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 | VCLT |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $823.2B | $7.5B |
| Dividend Yield | 0.99% | 5.99% |
| Holdings | 1,515 | 2,741 |
| YTD Return | +13.53%Best | -4.93% |
| 1Y Return | +17.47%Best | -6.77% |
| 3Y Return (annualized) | +22.36%Best | +5.95% |
| 5Y Return (annualized) | +13.21%Best | -3.20% |
| Volatility (annualized) | 14.3% | 10.7%Best |
| Max Drawdown | -34.1%Best | -35.1% |
| $10,000 over 5 years | $18,596Best | $8,499 |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Blend | Long Term Bond |
| Inception | Jan 22, 1993 | Nov 19, 2009 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Oct 14, 2026 (16.9 years).
SPY vs VCLT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SPY vs VCLT Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard Long Term Corporate Bond ETF (VCLT) is an ETF from Vanguard (US). Over the past year SPY returned +17.47% while VCLT returned -6.77%. Year to date, SPY is up 13.53% versus a loss of 4.93% for VCLT.
Over three years, SPY compounded at +22.36% per year against +5.95% for VCLT; over five years the annualized figures are +13.21% and -3.20% respectively. Across the full 17-year window we track, SPY has the edge at +12.67% annualized vs +1.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 10.7% for VCLT. 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 -34.1% for SPY and -35.1% for VCLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.41. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while VCLT charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 0.99% against 5.99% for VCLT.
Holdings Overlap
At least 14.2% of SPY's money is in holdings VCLT also owns.
Stated as a floor: for VCLT, our book for it covers 76.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SPY and VCLT share little of their money.
18 positions in common, counted across the 504 positions we hold weights for in SPY and 2,224 in VCLT, against full books of 1,515 and 2,741.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VCLT | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.45% | 0.17% | 7.28% |
| AMZNAmazon.Com Inc | 3.78% | 0.24% | 3.54% |
| ORCLOracle Corp. | 0.37% | 0.23% | 0.14% |
| LRCXLam Research Corp | 0.52% | 0.00% | 0.52% |
| TXNTexas Instruments, Inc | 0.36% | 0.08% | 0.28% |
| UNPUnion Pacific Corp | 0.26% | 0.09% | 0.17% |
| PEPPepsico Inc. | 0.28% | 0.06% | 0.22% |
| DEDeere & Co. | 0.26% | 0.08% | 0.18% |
| MOAltria Group Inc. | 0.18% | 0.11% | 0.07% |
| NOCNorthrop Grumman Corp. | 0.11% | 0.11% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of SPY and VCLT 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 VCLT?
SPY has an expense ratio of 0.09% while VCLT charges 0.03%. VCLT is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or VCLT?
Over the past year SPY returned +17.47% vs -6.77% for VCLT, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SPY annualized +12.67% vs +1.24% for VCLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VCLT?
SPY has been the more volatile fund at 14.3% annualized versus 10.7% for VCLT. Worst drawdown: SPY -34.1% vs VCLT -35.1%.
Should I hold both SPY and VCLT?
SPY and VCLT have a monthly-return correlation of 0.41, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SPY and VCLT?
At least 14.2% of SPY's money is in holdings VCLT also owns. Our book for VCLT is partial, so the real figure is this or higher. They hold 18 positions in common, counted across the 504 positions we hold weights for in SPY and 2,224 in VCLT.
Which pays a higher dividend, SPY or VCLT?
SPY yields 0.99% while VCLT yields 5.99%, so VCLT currently pays the higher dividend yield.
Is VCLT better than SPY?
VCLT 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.