SPY vs VFQY
State Street SPDR S&P 500 ETF Trust vs Vanguard US Quality Factor ETF
Which is better, SPY or VFQY?
Large Cap Blend against Mid Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. VFQY is less concentrated, with 13.1% of the fund in its ten largest positions against 38.2%.
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 | VFQY |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.13% |
| AUM | $823.2B | $493M |
| Dividend Yield | 0.99% | 1.04% |
| Holdings | 1,515 | 452 |
| YTD Return | +13.53%Best | +12.43% |
| 1Y Return | +17.47%Best | +15.57% |
| 3Y Return (annualized) | +22.36%Best | +16.23% |
| 5Y Return (annualized) | +13.21%Best | +8.77% |
| Volatility (annualized) | 16.3%Best | 18.1% |
| Max Drawdown | -34.1%Best | -37.4% |
| $10,000 over 5 years | $18,596Best | $15,225 |
| Top 10 Weight | 38.2% | 13.1%Best |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Jan 22, 1993 | Feb 13, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Oct 14, 2026 (8.7 years).
SPY vs VFQY 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 8.7 years both funds cover.
SPY vs VFQY Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Vanguard US Quality Factor ETF (VFQY) is an ETF from Vanguard (US). Over the past year SPY returned +17.47% while VFQY returned +15.57%. Year to date, SPY is up 13.53% versus a gain of 12.43% for VFQY.
Over three years, SPY compounded at +22.36% per year against +16.23% for VFQY; over five years the annualized figures are +13.21% and +8.77% respectively. Across the full 9-year window we track, SPY has the edge at +13.71% annualized vs +11.20%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFQY has been the more volatile fund, with annualized monthly volatility of 18.1% compared with 16.3% 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 -34.1% for SPY and -37.4% for VFQY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. 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 VFQY charges 0.13%. On a $10,000 position that is $9 vs $13 annually, a gap of $4 per year that compounds over a long holding period. On income, SPY currently yields 0.99% against 1.04% for VFQY.
Holdings Overlap
35.6% of SPY's money is in holdings VFQY also owns. 55.3% of VFQY's money is in holdings SPY also owns.
The two portfolios partly overlap.
121 positions in common, counted across the 504 positions we hold weights for in SPY and 469 in VFQY, against full books of 1,515 and 452.
What only one of them owns
Our book lists 334 positions for VFQY that do not appear in our book for SPY (43.0% of the fund), and 376 for SPY that do not appear in VFQY (63.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in VFQY | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.45% | 1.29% | 6.16% |
| NVDANvidia Corp | 7.78% | 0.12% | 7.66% |
| METAMeta Platforms Inc | 2.22% | 0.66% | 1.56% |
| LLYEli Lilly & Co. | 1.37% | 1.09% | 0.28% |
| COSTCostco Wholesale Corp. | 0.62% | 1.25% | 0.63% |
| LRCXLam Research Corp | 0.52% | 1.33% | 0.81% |
| JNJJohnson & Johnson - Common | 0.98% | 0.79% | 0.19% |
| GILDGilead Sciences | 0.28% | 1.45% | 1.17% |
| JPMJpmorgan Chase | 1.43% | 0.28% | 1.15% |
| FTNTFortinet Inc | 0.16% | 1.49% | 1.33% |
55.3% of VFQY is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or VFQY?
SPY has an expense ratio of 0.09% while VFQY charges 0.13%. SPY is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, SPY or VFQY?
Over the past year SPY returned +17.47% vs +15.57% for VFQY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), SPY annualized +13.71% vs +11.20% for VFQY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VFQY?
VFQY has been the more volatile fund at 18.1% annualized versus 16.3% for SPY. Worst drawdown: SPY -34.1% vs VFQY -37.4%.
Should I hold both SPY and VFQY?
SPY and VFQY have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SPY and VFQY?
55.3% of VFQY's money is in holdings SPY also owns. 55.3% of VFQY's is in holdings SPY also owns. They hold 121 positions in common, counted across the 504 positions we hold weights for in SPY and 469 in VFQY.
Which pays a higher dividend, SPY or VFQY?
SPY yields 0.99% while VFQY yields 1.04%, so VFQY currently pays the higher dividend yield.
Is VFQY better than SPY?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. VFQY is less concentrated, with 13.1% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.