ETF Versus

SPY vs VYM

State Street SPDR S&P 500 ETF Trust vs Vanguard High Dividend Yield Index Fund ETF Shares

Last updated: 2026-04-02

SPY State Street

State Street SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund issued by State Street that provides exposure to large-cap U.S. equities across growth and value styles. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.13%. Launched in 1993, the fund has a 33-year track record.

AUM: $636.7B ER: 0.09% Yield: 1.13% Since: Jan 22, 1993
VYM Vanguard

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 2.37%. Launched in 2006, the fund has a 20-year track record.

AUM: $71.3B ER: 0.04% Yield: 2.37% Since: Nov 10, 2006

Quick Verdict

VYM has a slightly lower expense ratio (0.04% vs 0.09%), saving about $99 per $10,000 over 10 years. SPY has edged ahead over the past year (16.8% vs 15.0%). Income investors may prefer VYM for its higher yield (2.4% vs 1.1%).

Key Metrics

Metric SPY VYM
Expense Ratio 0.09% 0.04%
Dividend Yield 1.1% 2.4%
Fund Family State Street Vanguard
Category US Large Cap Blend US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

85 103 121 139 157 175 2021-04 2022-06 2023-09 2024-12 2026-04
SPY +61.2%
VYM +44.6%

Performance Comparison

Period SPY VYM Difference
1 Month -4.54% -4.59% +0.05%
3 Months -4.09% +2.20% -6.29%
6 Months -2.09% +4.52% -6.61%
YTD -4.09% +2.20% -6.29%
1 Year +16.80% +14.98% +1.82%
3 Years +59.45% +39.18% +20.27%
5 Years +61.25% +44.55% +16.70%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SPY Fees VYM Fees You Save
$10.000 10 years $179 $80 $99
$10.000 20 years $771 $344 $427
$10.000 30 years $2.486 $1.112 $1.373
$50.000 10 years $896 $399 $497
$50.000 30 years $12.428 $5.560 $6.867
$100.000 30 years $24.855 $11.121 $13.734

Risk Metrics

Based on 5 years of daily returns

Metric SPY VYM
Annualized Volatility 17.1% 14.0%
Max Drawdown -25.4% -17.5%
Sharpe Ratio 0.38 0.28

Dividend Comparison

Metric SPY VYM
Annual Dividend (per share) $7.38 $3.51
Dividend Yield 1.13% 2.37%
Distribution Frequency Quarterly Quarterly

Top Holdings

1 of top 9 holdings overlap (11% overlap in top holdings)

SPY Top Holdings

NameWeight
NVIDIA CorporationNVDA7.58%
Apple Inc.AAPL6.66%
Microsoft CorporationMSFT4.91%
Amazon.com, Inc.AMZN3.64%
Broadcom Inc.AVGO2.62%
Alphabet Inc.GOOG2.40%
Meta Platforms, Inc.META2.24%
Tesla, Inc.TSLA1.87%
Berkshire Hathaway Inc.BRK.B1.57%

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

Which One Should You Choose?

Choose VYM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VYM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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