VLGIX vs. SPY

Last updated Aug 4, 2026

VLGIX (Vanguard Long-Term Treasury Index Fund Institutional Shares) and SPY (State Street SPDR S&P 500 ETF) are both funds - VLGIX is a Government Bonds fund managed by Vanguard, while SPY is a S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, VLGIX returned -1.74%/yr vs 15.09%/yr for SPY. Their -0.24 correlation means they have often moved in opposite directions in the past. VLGIX charges 0.05%/yr vs 0.09%/yr for SPY.

Performance

VLGIX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Long-Term Treasury Index Fund Institutional Shares (VLGIX) 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, VLGIX achieves a -3.45% return, which is significantly lower than SPY's 11.70% return. Over the past 10 years, VLGIX has underperformed SPY with an annualized return of -1.74%, while SPY has yielded a comparatively higher 15.09% annualized return.

VLGIX

• 1D: -0.62%
• 1M: -3.35%
• 6M: -2.88%
• YTD: -3.45%
• 1Y: -1.65%
• 3Y*: -0.50%
• 5Y*: -7.01%
• 10Y*: -1.74%
• ALL TIME*: 2.32%

SPY

• 1D: 1.42%
• 1M: 1.73%
• 6M: 9.53%
• YTD: 11.70%
• 1Y: 23.22%
• 3Y*: 20.74%
• 5Y*: 13.05%
• 10Y*: 15.09%
• ALL TIME*: 10.83%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SPY State Street SPDR S&P 500 ETF	$38.19B	$36.17B	$39.59B
VLGIX Vanguard Long-Term Treasury Index Fund Institutional Shares	$0.00	$0.00	$0.00

VLGIX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLGIX Vanguard Long-Term Treasury Index Fund Institutional Shares	-3.45%	5.46%	-6.11%	3.67%	-29.45%	-5.06%	17.72%	14.31%	-1.59%	8.64%
SPY State Street SPDR S&P 500 ETF	11.70%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VLGIX and SPY is 0.25, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.25
Correlation (3Y) Balances recent behavior with more history.	0.17
Correlation (5Y) Shows whether the relationship held over a longer period.	0.09
Correlation (10Y) Provides a long-term view across more market conditions.	-0.08
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	-0.24

The correlation between VLGIX and SPY shifts across timeframes, from -0.24 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VLGIX vs. SPY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VLGIX

VLGIX Risk / Return Rank: 4
VLGIX Sharpe Ratio Rank: 4
VLGIX Sortino Ratio Rank: 3
VLGIX Omega Ratio Rank: 3
VLGIX Calmar Ratio Rank: 4
VLGIX Martin Ratio Rank: 4

SPY

SPY Risk / Return Rank: 78
SPY Sharpe Ratio Rank: 78
SPY Sortino Ratio Rank: 77
SPY Omega Ratio Rank: 77
SPY Calmar Ratio Rank: 74
SPY Martin Ratio Rank: 83

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VLGIX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Long-Term Treasury Index Fund Institutional Shares (VLGIX) 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.

	VLGIX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	1.82	-1.86
Sortino ratio: Return per unit of downside risk	0.00	2.50	-2.50
Omega ratio: Gain probability vs. loss probability	1.00	1.32	-0.32
Calmar ratio: Return relative to maximum drawdown	-0.05	2.62	-2.68
Martin ratio: Return relative to average drawdown	-0.11	11.20	-11.31

VLGIX vs. SPY - Sharpe Ratio Comparison

The current VLGIX Sharpe Ratio is -0.04, which is lower than the SPY Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of VLGIX 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

VLGIX vs. SPY - Drawdown Comparison

The maximum VLGIX drawdown since its inception was -46.23%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VLGIX and SPY.

Drawdown Indicators

	VLGIX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-55.19%	+8.96%
Max Drawdown (1Y) Largest decline over 1 year	-7.02%	-8.88%	+1.86%
Max Drawdown (3Y) Largest decline over 3 years	-13.35%	-18.76%	+5.41%
Max Drawdown (5Y) Largest decline over 5 years	-41.00%	-24.50%	-16.50%
Max Drawdown (10Y) Largest decline over 10 years	-46.23%	-33.72%	-12.51%
Current Drawdown Current decline from peak	-38.47%	0.00%	-38.47%
Average Drawdown Average peak-to-trough decline	-15.24%	-9.01%	-6.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.19%	2.08%	+1.11%

Volatility

VLGIX vs. SPY - Volatility Comparison

The current volatility for Vanguard Long-Term Treasury Index Fund Institutional Shares (VLGIX) is 2.22%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 3.84%. This indicates that VLGIX 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

	VLGIX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.22%	3.84%	-1.62%
Volatility (6M) Calculated over the trailing 6-month period	6.36%	10.23%	-3.87%
Volatility (1Y) Calculated over the trailing 1-year period	8.52%	12.87%	-4.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.44%	17.19%	-2.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.65%	17.96%	-4.31%

VLGIX vs. SPY - Expense Ratio Comparison

VLGIX has a 0.05% expense ratio, which is lower than SPY's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VLGIX vs. SPY - Dividend Comparison

VLGIX's dividend yield for the trailing twelve months is around 4.37%, more than SPY's 0.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.99%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VLGIX Vanguard Long-Term Treasury Index Fund Institutional Shares	4.37%	4.43%	4.67%	3.31%	2.83%	1.78%	2.15%	2.46%	2.73%	2.57%	2.70%	2.82%

Frequently Asked Questions

Can I hold both VLGIX and SPY in my portfolio?

VLGIX and SPY have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VLGIX or SPY?

SPY has higher volatility (3.84%) compared to VLGIX (2.22%). In terms of maximum drawdown, VLGIX dropped -46.23% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.82 vs -0.04), 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.