VFWAX vs. SPY

Last updated Jun 7, 2026

VFWAX (Vanguard FTSE All-World ex-US Index Fund Admiral Shares) and SPY (State Street SPDR S&P 500 ETF) are both funds - VFWAX is a Foreign Large Cap Equities fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VFWAX returned 9.86%/yr vs 15.16%/yr for SPY. Their correlation of 0.81 suggests significant overlap in exposure. VFWAX charges 0.11%/yr vs 0.09%/yr for SPY.

Performance

VFWAX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) 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, VFWAX achieves a 14.86% return, which is significantly higher than SPY's 8.45% return. Over the past 10 years, VFWAX has underperformed SPY with an annualized return of 9.86%, while SPY has yielded a comparatively higher 15.16% annualized return.

VFWAX

• 1D: 0.00%
• 1M: 2.36%
• YTD: 14.86%
• 6M: 17.13%
• 1Y: 31.32%
• 3Y*: 19.80%
• 5Y*: 8.69%
• 10Y*: 9.86%

SPY

• 1D: -2.58%
• 1M: 0.82%
• YTD: 8.45%
• 6M: 8.18%
• 1Y: 24.51%
• 3Y*: 21.43%
• 5Y*: 13.32%
• 10Y*: 15.16%

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

VFWAX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	14.86%	32.32%	5.43%	15.55%	-15.51%	8.08%	11.34%	21.53%	-13.97%	27.20%
SPY State Street SPDR S&P 500 ETF	8.45%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VFWAX and SPY is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	0.81

The correlation between VFWAX and SPY has been stable across timeframes, ranging from 0.75 to 0.81 - a consistent structural relationship.

VFWAX vs. SPY - Sectors Allocation Comparison

Sectors	VFWAX	SPY
Financial Services	23.3%	11.8%
Technology	18.5%	35.9%
Industrials	15.7%	7.8%
Consumer Cyclical	8.2%	10.3%
Basic Materials	7.1%	1.8%
Healthcare	7.1%	8.4%
Energy	5.2%	3.6%
Consumer Defensive	5.1%	4.8%
Communication Services	4.6%	11.3%
Utilities	3.2%	2.4%
Real Estate	2.0%	1.9%

Return for Risk

VFWAX vs. SPY — Risk / Return Rank

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

VFWAX

VFWAX Risk / Return Rank: 58
VFWAX Sharpe Ratio Rank: 61
VFWAX Sortino Ratio Rank: 56
VFWAX Omega Ratio Rank: 60
VFWAX Calmar Ratio Rank: 58
VFWAX Martin Ratio Rank: 58

SPY

SPY Risk / Return Rank: 66
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 63
SPY Omega Ratio Rank: 66
SPY Calmar Ratio Rank: 60
SPY Martin Ratio Rank: 73

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.

VFWAX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) 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.

	VFWAX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.23	2.14	+0.09
Sortino ratio: Return per unit of downside risk	3.04	2.88	+0.16
Omega ratio: Gain probability vs. loss probability	1.41	1.39	+0.02
Calmar ratio: Return relative to maximum drawdown	2.83	2.92	-0.09
Martin ratio: Return relative to average drawdown	11.13	13.50	-2.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFWAX vs. SPY - Sharpe Ratio Comparison

The current VFWAX Sharpe Ratio is 2.23, which is comparable to the SPY Sharpe Ratio of 2.14. The chart below compares the historical Sharpe Ratios of VFWAX 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

	VFWAX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.23	2.14	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.78	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	0.85	-0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.58	-0.07

Drawdowns

VFWAX vs. SPY - Drawdown Comparison

The maximum VFWAX drawdown since its inception was -34.93%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VFWAX and SPY.

Drawdown Indicators

	VFWAX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-34.93%	-55.19%	+20.26%
Max Drawdown (1Y) Largest decline over 1 year	-11.34%	-8.88%	-2.46%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-18.76%	+5.51%
Max Drawdown (5Y) Largest decline over 5 years	-29.40%	-24.50%	-4.90%
Max Drawdown (10Y) Largest decline over 10 years	-34.93%	-33.72%	-1.21%
Current Drawdown Current decline from peak	-0.79%	-2.90%	+2.11%
Average Drawdown Average peak-to-trough decline	-7.19%	-9.05%	+1.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.88%	1.91%	+0.97%

Volatility

VFWAX vs. SPY - Volatility Comparison

Vanguard FTSE All-World ex-US Index Fund Admiral Shares (VFWAX) has a higher volatility of 4.88% compared to State Street SPDR S&P 500 ETF (SPY) at 3.73%. This indicates that VFWAX'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

	VFWAX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.88%	3.73%	+1.15%
Volatility (6M) Calculated over the trailing 6-month period	12.09%	9.31%	+2.78%
Volatility (1Y) Calculated over the trailing 1-year period	14.40%	12.12%	+2.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.18%	17.09%	-1.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.08%	17.95%	-1.87%

VFWAX vs. SPY - Expense Ratio Comparison

VFWAX has a 0.11% 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

VFWAX vs. SPY - Dividend Comparison

VFWAX's dividend yield for the trailing twelve months is around 2.57%, more than SPY's 1.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VFWAX Vanguard FTSE All-World ex-US Index Fund Admiral Shares	2.57%	3.05%	3.20%	3.28%	3.07%	3.03%	1.97%	3.07%	3.24%	2.67%	2.96%	2.95%

Frequently Asked Questions

Can I hold both VFWAX and SPY in my portfolio?

VFWAX and SPY have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFWAX or SPY?

VFWAX has higher volatility (4.88%) compared to SPY (3.73%). In terms of maximum drawdown, VFWAX dropped -34.93% vs SPY's -55.19%.

Which has better risk-adjusted returns?

VFWAX currently has the higher Sharpe Ratio (2.23 vs 2.14), 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.