VEXPX vs. SPY

Last updated Jun 4, 2026

VEXPX (Vanguard Explorer Fund Investor Shares) and SPY (State Street SPDR S&P 500 ETF) are both funds - VEXPX is a Small Cap Growth Equities fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VEXPX returned 13.26%/yr vs 15.49%/yr for SPY. Their correlation of 0.82 suggests significant overlap in exposure. VEXPX charges 0.40%/yr vs 0.09%/yr for SPY.

Performance

VEXPX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Explorer Fund Investor Shares (VEXPX) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VEXPX achieves a 15.26% return, which is significantly higher than SPY's 10.91% return. Over the past 10 years, VEXPX has underperformed SPY with an annualized return of 13.26%, while SPY has yielded a comparatively higher 15.49% annualized return.

VEXPX

• 1D: 0.51%
• 1M: 3.79%
• YTD: 15.26%
• 6M: 14.17%
• 1Y: 28.87%
• 3Y*: 17.33%
• 5Y*: 7.16%
• 10Y*: 13.26%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VEXPX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEXPX Vanguard Explorer Fund Investor Shares	15.26%	7.08%	17.25%	19.78%	-23.32%	15.96%	31.36%	31.27%	-2.46%	22.49%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VEXPX and SPY is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Feb 1, 1993	0.82

The correlation between VEXPX and SPY has been stable across timeframes, ranging from 0.81 to 0.86 - a consistent structural relationship.

VEXPX vs. SPY - Sectors Allocation Comparison

Sectors	VEXPX	SPY
Industrials	21.9%	7.8%
Technology	20.6%	35.9%
Healthcare	17.5%	8.4%
Consumer Cyclical	12.0%	10.3%
Financial Services	11.2%	11.8%
Energy	4.5%	3.6%
Real Estate	3.0%	1.9%
Basic Materials	2.8%	1.8%
Consumer Defensive	2.7%	4.8%
Communication Services	2.2%	11.3%
Utilities	1.6%	2.4%

Return for Risk

VEXPX vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VEXPX

VEXPX Risk / Return Rank: 46
VEXPX Sharpe Ratio Rank: 39
VEXPX Sortino Ratio Rank: 38
VEXPX Omega Ratio Rank: 35
VEXPX Calmar Ratio Rank: 61
VEXPX Martin Ratio Rank: 59

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VEXPX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Explorer Fund Investor Shares (VEXPX) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VEXPX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.80	2.38	-0.57
Sortino ratio: Return per unit of downside risk	2.55	3.24	-0.69
Omega ratio: Gain probability vs. loss probability	1.31	1.43	-0.12
Calmar ratio: Return relative to maximum drawdown	3.01	3.16	-0.15
Martin ratio: Return relative to average drawdown	11.73	14.72	-2.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VEXPX vs. SPY - Sharpe Ratio Comparison

The current VEXPX Sharpe Ratio is 1.80, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of VEXPX and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VEXPX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.80	2.38	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.34	0.82	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.87	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.59	-0.07

Drawdowns

VEXPX vs. SPY - Drawdown Comparison

The maximum VEXPX drawdown since its inception was -57.40%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VEXPX and SPY.

Drawdown Indicators

	VEXPX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-57.40%	-55.19%	-2.21%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-8.88%	-1.30%
Max Drawdown (3Y) Largest decline over 3 years	-24.38%	-18.76%	-5.62%
Max Drawdown (5Y) Largest decline over 5 years	-32.71%	-24.50%	-8.21%
Max Drawdown (10Y) Largest decline over 10 years	-39.87%	-33.72%	-6.15%
Current Drawdown Current decline from peak	0.00%	-0.70%	+0.70%
Average Drawdown Average peak-to-trough decline	-12.90%	-9.05%	-3.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.61%	1.91%	+0.70%

Volatility

VEXPX vs. SPY - Volatility Comparison

Vanguard Explorer Fund Investor Shares (VEXPX) has a higher volatility of 4.58% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that VEXPX's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VEXPX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	2.84%	+1.74%
Volatility (6M) Calculated over the trailing 6-month period	12.67%	8.90%	+3.77%
Volatility (1Y) Calculated over the trailing 1-year period	17.02%	11.83%	+5.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.31%	17.05%	+4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.83%	17.94%	+3.89%

VEXPX vs. SPY - Expense Ratio Comparison

VEXPX has a 0.40% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

VEXPX vs. SPY - Dividend Comparison

VEXPX's dividend yield for the trailing twelve months is around 6.41%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VEXPX Vanguard Explorer Fund Investor Shares	6.41%	7.38%	12.59%	0.79%	5.09%	16.00%	6.64%	4.97%	10.95%	11.46%	4.49%	10.71%

Frequently Asked Questions

Can I hold both VEXPX and SPY in my portfolio?

VEXPX and SPY have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEXPX or SPY?

VEXPX has higher volatility (4.58%) compared to SPY (2.84%). In terms of maximum drawdown, VEXPX dropped -57.40% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs 1.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.