VFQY vs. SPY

Last updated Jun 26, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. VFQY is actively managed, while SPY is passively managed. Over the past 5 years, VFQY returned 8.54%/yr vs 12.99%/yr for SPY. Their correlation of 0.87 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.09%/yr for SPY.

Performance

VFQY vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) 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, VFQY achieves a 9.93% return, which is significantly higher than SPY's 8.25% return.

VFQY

• 1D: 0.65%
• 1M: 2.78%
• YTD: 9.93%
• 6M: 7.73%
• 1Y: 20.32%
• 3Y*: 16.45%
• 5Y*: 8.54%
• 10Y*: —

SPY

• 1D: 0.14%
• 1M: -1.92%
• YTD: 8.25%
• 6M: 6.93%
• 1Y: 22.29%
• 3Y*: 20.89%
• 5Y*: 12.99%
• 10Y*: 15.75%

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

VFQY vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFQY Vanguard U.S. Quality Factor ETF	9.93%	10.24%	12.93%	22.48%	-15.74%	27.96%	16.97%	25.75%	-8.19%
SPY State Street SPDR S&P 500 ETF	8.25%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-5.54%

Correlation

The correlation between VFQY and SPY is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.87

The correlation between VFQY and SPY shifts across timeframes, from 0.77 (1 year) to 0.88 (5 years), reflecting how their relationship changes across market environments.

VFQY vs. SPY - Sectors Allocation Comparison

Sectors	VFQY	SPY
Technology	25.8%	39.0%
Financial Services	18.9%	11.1%
Industrials	16.8%	7.8%
Consumer Cyclical	13.3%	9.9%
Consumer Defensive	9.2%	4.5%
Healthcare	8.9%	8.3%
Communication Services	2.8%	10.6%
Basic Materials	2.2%	1.7%
Energy	2.2%	3.1%
Real Estate	-	1.8%
Utilities	-	2.1%

Return for Risk

VFQY vs. SPY — Risk / Return Rank

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

VFQY

VFQY Risk / Return Rank: 51
VFQY Sharpe Ratio Rank: 50
VFQY Sortino Ratio Rank: 51
VFQY Omega Ratio Rank: 45
VFQY Calmar Ratio Rank: 52
VFQY Martin Ratio Rank: 55

SPY

SPY Risk / Return Rank: 63
SPY Sharpe Ratio Rank: 63
SPY Sortino Ratio Rank: 61
SPY Omega Ratio Rank: 63
SPY Calmar Ratio Rank: 59
SPY Martin Ratio Rank: 70

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.

VFQY vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VFQY	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.51	1.80	-0.29
Sortino ratio: Return per unit of downside risk	2.19	2.46	-0.27
Omega ratio: Gain probability vs. loss probability	1.26	1.33	-0.07
Calmar ratio: Return relative to maximum drawdown	2.24	2.52	-0.28
Martin ratio: Return relative to average drawdown	8.31	11.15	-2.84

VFQY vs. SPY - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.51, which is comparable to the SPY Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of VFQY 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.

Drawdowns

VFQY vs. SPY - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VFQY and SPY.

Drawdown Indicators

	VFQY	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-37.41%	-55.19%	+17.78%
Max Drawdown (1Y) Largest decline over 1 year	-9.12%	-8.88%	-0.24%
Max Drawdown (3Y) Largest decline over 3 years	-20.67%	-18.76%	-1.91%
Max Drawdown (5Y) Largest decline over 5 years	-25.93%	-24.50%	-1.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-0.03%	-3.08%	+3.05%
Average Drawdown Average peak-to-trough decline	-6.64%	-9.03%	+2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	2.00%	+0.45%

Volatility

VFQY vs. SPY - Volatility Comparison

The current volatility for Vanguard U.S. Quality Factor ETF (VFQY) is 3.74%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.79%. This indicates that VFQY experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFQY	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.74%	4.79%	-1.05%
Volatility (6M) Calculated over the trailing 6-month period	9.86%	9.80%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	13.54%	12.43%	+1.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	17.15%	+1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.83%	17.95%	+2.88%

VFQY vs. SPY - Expense Ratio Comparison

VFQY has a 0.13% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFQY vs. SPY - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 1.07%, more than SPY's 1.02% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.02%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VFQY Vanguard U.S. Quality Factor ETF	1.07%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VFQY and SPY in my portfolio?

VFQY and SPY have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFQY or SPY?

SPY has higher volatility (4.79%) compared to VFQY (3.74%). In terms of maximum drawdown, VFQY dropped -37.41% vs SPY's -55.19%.

Which ETF is better, VFQY or SPY?

On 5-year performance, SPY leads with 12.99% vs 8.54% for VFQY. On fees, SPY is cheaper at 0.09% per year. On volatility, VFQY has been the lower-risk option at 3.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFQY or SPY?

Over the 5-year period, SPY has performed better with a 12.99% return vs 8.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFQY or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.13% for VFQY.

Which ETF pays a higher dividend yield, VFQY or SPY?

VFQY has the higher dividend yield at 1.07%, compared with 1.02% for SPY.

What is the main difference between VFQY and SPY?

VFQY is categorized as Mid Cap Blend Equities, while SPY is S&P 500. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.13% for VFQY and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.80 vs 1.51), 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.