VGT vs. SPY
Compare and contrast key facts about Vanguard Information Technology ETF (VGT) and SPDR S&P 500 ETF (SPY).
VGT and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both VGT and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGT or SPY.
Performance
VGT vs. SPY - Performance Comparison
Returns By Period
In the year-to-date period, VGT achieves a 27.28% return, which is significantly higher than SPY's 25.41% return. Over the past 10 years, VGT has outperformed SPY with an annualized return of 20.69%, while SPY has yielded a comparatively lower 13.07% annualized return.
VGT
27.28%
0.97%
13.82%
34.56%
22.52%
20.69%
SPY
25.41%
1.18%
12.15%
32.04%
15.51%
13.07%
Key characteristics
| VGT | SPY | |
|---|---|---|
| Sharpe Ratio | 1.59 | 2.62 |
| Sortino Ratio | 2.11 | 3.50 |
| Omega Ratio | 1.29 | 1.49 |
| Calmar Ratio | 2.20 | 3.78 |
| Martin Ratio | 7.89 | 17.00 |
| Ulcer Index | 4.24% | 1.87% |
| Daily Std Dev | 20.98% | 12.14% |
| Max Drawdown | -54.63% | -55.19% |
| Current Drawdown | -2.04% | -1.38% |
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VGT vs. SPY - Expense Ratio Comparison
VGT has a 0.10% 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%.
Correlation
The correlation between VGT and SPY is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
VGT vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) and 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.
Dividends
VGT vs. SPY - Dividend Comparison
VGT's dividend yield for the trailing twelve months is around 0.61%, less than SPY's 1.19% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGT Vanguard Information Technology ETF | 0.61% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
SPY SPDR S&P 500 ETF | 1.19% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
VGT vs. SPY - Drawdown Comparison
The maximum VGT drawdown since its inception was -54.63%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VGT and SPY. For additional features, visit the drawdowns tool.
Volatility
VGT vs. SPY - Volatility Comparison
Vanguard Information Technology ETF (VGT) has a higher volatility of 6.62% compared to SPDR S&P 500 ETF (SPY) at 4.09%. This indicates that VGT'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.