SPY vs VLU
State Street SPDR S&P 500 ETF Trust vs State Street SPDR S&P 1500 Value Tilt ETF
Which is better, SPY or VLU?
Large Cap Blend against Large Cap Value.
SPY has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VLU over 1Y. The two have moved almost in lockstep, correlation 0.90. VLU is less concentrated, with 18.6% 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 | VLU |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.12% |
| AUM | $811.2B | $751M |
| Dividend Yield | 0.98% | 1.57% |
| Holdings | 1,515 | 1,476 |
| YTD Return | +14.77% | +17.02%Best |
| 1Y Return | +18.61% | +23.83%Best |
| 3Y Return (annualized) | +22.83%Best | +21.08% |
| 5Y Return (annualized) | +13.84%Best | +12.91% |
| Volatility (annualized) | 14.1%Best | 15.8% |
| Max Drawdown | -34.1%Best | -37.9% |
| $10,000 over 5 years | $19,119Best | $18,351 |
| Top 10 Weight | 38.2% | 18.6%Best |
| Fund Family | State Street Investment Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jan 22, 1993 | Oct 24, 2012 |
Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2012 to Oct 13, 2026 (14 years).
SPY vs VLU 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 14 years both funds cover.
SPY vs VLU Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and State Street SPDR S&P 1500 Value Tilt ETF (VLU) is an ETF from State Street Investment Management. Over the past year SPY returned +18.61% while VLU returned +23.83%. Year to date, SPY is up 14.77% versus a gain of 17.02% for VLU.
Over three years, SPY compounded at +22.83% per year against +21.08% for VLU; over five years the annualized figures are +13.84% and +12.91% respectively. Across the full 14-year window we track, SPY has the edge at +13.61% annualized vs +11.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 14.1% 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 -37.9% for VLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.90. 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 VLU charges 0.12%. On a $10,000 position that is $9 vs $12 annually, a gap of $3 per year that compounds over a long holding period. On income, SPY currently yields 0.98% against 1.57% for VLU.
Holdings Overlap
99.2% of SPY's money is in holdings VLU also owns. 84.8% of VLU's money is in holdings SPY also owns.
Most of SPY is already inside VLU. Owning both mostly buys the same companies twice.
499 positions in common, counted across the 504 positions we hold weights for in SPY and 1,462 in VLU, against full books of 1,515 and 1,476.
What only one of them owns
Our book lists 764 positions for VLU that do not appear in our book for SPY (14.5% of the fund), and 5 for SPY that do not appear in VLU (0.5%).
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 VLU | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.45% | 2.08% | 5.37% |
| NVDANvidia Corp | 7.78% | 0.99% | 6.79% |
| MSFTMicrosoft Corp | 5.71% | 2.95% | 2.76% |
| AMZNAmazon.Com Inc | 3.78% | 2.71% | 1.07% |
| GOOGAlphabet Inc. C | 2.49% | 1.51% | 0.98% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 1.44% | 2.50% | 1.06% |
| GOOGLAlphabet Inc,class A | 3.12% | 0.54% | 2.58% |
| METAMeta Platforms Inc | 2.22% | 1.28% | 0.94% |
| JPMJpmorgan Chase | 1.43% | 1.52% | 0.09% |
| AVGOBroadcom Inc | 2.48% | 0.46% | 2.02% |
99.2% of SPY is already inside VLU.
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 VLU?
SPY has an expense ratio of 0.09% while VLU charges 0.12%. SPY is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SPY or VLU?
Over the past year SPY returned +18.61% vs +23.83% for VLU, so VLU leads on 1-year performance. Over the longest common window we track (14 years), SPY annualized +13.61% vs +11.46% for VLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or VLU?
VLU has been the more volatile fund at 15.8% annualized versus 14.1% for SPY. Worst drawdown: SPY -34.1% vs VLU -37.9%.
Should I hold both SPY and VLU?
SPY and VLU have a monthly-return correlation of 0.90, 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 VLU?
99.2% of SPY's money is in holdings VLU also owns. 84.8% of VLU's is in holdings SPY also owns. They hold 499 positions in common, counted across the 504 positions we hold weights for in SPY and 1,462 in VLU.
Which pays a higher dividend, SPY or VLU?
SPY yields 0.98% while VLU yields 1.57%, so VLU currently pays the higher dividend yield.
Is VLU better than SPY?
SPY has a lower expense ratio. SPY led over 3Y, 5Y and the full window, VLU over 1Y. The two have moved almost in lockstep, correlation 0.90. VLU is less concentrated, with 18.6% 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.