VLUE vs. SPY

Last updated Jun 4, 2026

VLUE (iShares Edge MSCI USA Value Factor ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VLUE is a Large Cap Value Equities fund tracking the MSCI USA Value Weighted Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VLUE returned 15.43%/yr vs 15.49%/yr for SPY. Their correlation of 0.83 suggests significant overlap in exposure. VLUE charges 0.15%/yr vs 0.09%/yr for SPY.

Performance

VLUE vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Edge MSCI USA Value Factor ETF (VLUE) 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, VLUE achieves a 49.00% return, which is significantly higher than SPY's 10.91% return. Both investments have delivered pretty close results over the past 10 years, with VLUE having a 15.43% annualized return and SPY not far ahead at 15.49%.

VLUE

• 1D: -0.42%
• 1M: 20.77%
• YTD: 49.00%
• 6M: 51.40%
• 1Y: 91.45%
• 3Y*: 34.26%
• 5Y*: 16.36%
• 10Y*: 15.43%

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)

VLUE vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLUE iShares Edge MSCI USA Value Factor ETF	49.00%	32.67%	7.25%	14.26%	-14.17%	28.93%	-0.23%	27.20%	-11.13%	21.95%
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 VLUE and SPY is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Apr 19, 2013	0.83

The correlation between VLUE and SPY has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.

VLUE vs. SPY - Sectors Allocation Comparison

Sectors	VLUE	SPY
Technology	44.5%	35.9%
Financial Services	10.4%	11.8%
Healthcare	8.5%	8.4%
Communication Services	8.3%	11.3%
Consumer Cyclical	8.3%	10.3%
Industrials	7.4%	7.8%
Consumer Defensive	4.0%	4.8%
Energy	3.2%	3.6%
Utilities	2.0%	2.4%
Real Estate	1.8%	1.9%
Basic Materials	1.6%	1.8%

Return for Risk

VLUE vs. SPY — Risk / Return Rank

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

VLUE

VLUE Risk / Return Rank: 97
VLUE Sharpe Ratio Rank: 98
VLUE Sortino Ratio Rank: 98
VLUE Omega Ratio Rank: 97
VLUE Calmar Ratio Rank: 96
VLUE Martin Ratio Rank: 97

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.

VLUE vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI USA Value Factor ETF (VLUE) 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.

	VLUE	SPY	Difference
Sharpe ratio: Return per unit of total volatility	5.32	2.38	+2.95
Sortino ratio: Return per unit of downside risk	6.86	3.24	+3.62
Omega ratio: Gain probability vs. loss probability	1.91	1.43	+0.47
Calmar ratio: Return relative to maximum drawdown	10.17	3.16	+7.01
Martin ratio: Return relative to average drawdown	45.62	14.72	+30.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VLUE vs. SPY - Sharpe Ratio Comparison

The current VLUE Sharpe Ratio is 5.32, which is higher than the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of VLUE 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

	VLUE	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.32	2.38	+2.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	0.82	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.78	0.87	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.76	0.59	+0.18

Drawdowns

VLUE vs. SPY - Drawdown Comparison

The maximum VLUE drawdown since its inception was -39.47%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VLUE and SPY.

Drawdown Indicators

	VLUE	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-39.47%	-55.19%	+15.72%
Max Drawdown (1Y) Largest decline over 1 year	-9.04%	-8.88%	-0.16%
Max Drawdown (3Y) Largest decline over 3 years	-17.89%	-18.76%	+0.87%
Max Drawdown (5Y) Largest decline over 5 years	-27.12%	-24.50%	-2.62%
Max Drawdown (10Y) Largest decline over 10 years	-39.47%	-33.72%	-5.75%
Current Drawdown Current decline from peak	-0.42%	-0.70%	+0.28%
Average Drawdown Average peak-to-trough decline	-6.01%	-9.05%	+3.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	1.91%	+0.10%

Volatility

VLUE vs. SPY - Volatility Comparison

iShares Edge MSCI USA Value Factor ETF (VLUE) has a higher volatility of 8.03% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that VLUE'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

	VLUE	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.03%	2.84%	+5.19%
Volatility (6M) Calculated over the trailing 6-month period	13.96%	8.90%	+5.06%
Volatility (1Y) Calculated over the trailing 1-year period	17.30%	11.83%	+5.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.78%	17.05%	+0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.82%	17.94%	+1.88%

VLUE vs. SPY - Expense Ratio Comparison

VLUE has a 0.15% 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

VLUE vs. SPY - Dividend Comparison

VLUE's dividend yield for the trailing twelve months is around 1.40%, 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%
VLUE iShares Edge MSCI USA Value Factor ETF	1.40%	2.11%	2.73%	2.66%	3.18%	2.22%	2.42%	2.61%	2.70%	2.14%	2.07%	2.39%

Frequently Asked Questions

Can I hold both VLUE and SPY in my portfolio?

VLUE and SPY have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VLUE or SPY?

VLUE has higher volatility (8.03%) compared to SPY (2.84%). In terms of maximum drawdown, VLUE dropped -39.47% vs SPY's -55.19%.

Which ETF is better, VLUE or SPY?

On 10-year performance, SPY leads with 15.49% vs 15.43% for VLUE. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VLUE or SPY?

Over the 10-year period, SPY has performed better with a 15.49% return vs 15.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLUE or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.15% for VLUE.

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

VLUE has the higher dividend yield at 1.40%, compared with 0.98% for SPY.

What is the main difference between VLUE and SPY?

VLUE is categorized as Large Cap Value Equities, while SPY is S&P 500. VLUE tracks MSCI USA Value Weighted Index, while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for VLUE and 0.09% for SPY.

Which has better risk-adjusted returns?

VLUE currently has the higher Sharpe Ratio (5.32 vs 2.38), 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.