VT vs. SPY

Last updated Jun 23, 2026

VT (Vanguard Total World Stock ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VT is a Global Equities fund tracking the FTSE Global All Cap Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VT returned 13.20%/yr vs 15.70%/yr for SPY. Their correlation of 0.94 suggests significant overlap in exposure. VT charges 0.06%/yr vs 0.09%/yr for SPY.

Performance

VT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Stock ETF (VT) 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, VT achieves a 12.36% return, which is significantly higher than SPY's 9.74% return. Over the past 10 years, VT has underperformed SPY with an annualized return of 13.20%, while SPY has yielded a comparatively higher 15.70% annualized return.

VT

• 1D: -0.06%
• 1M: 1.64%
• YTD: 12.36%
• 6M: 12.14%
• 1Y: 29.57%
• 3Y*: 20.75%
• 5Y*: 11.13%
• 10Y*: 13.20%

SPY

• 1D: -0.31%
• 1M: 0.09%
• YTD: 9.74%
• 6M: 9.27%
• 1Y: 26.65%
• 3Y*: 21.27%
• 5Y*: 13.51%
• 10Y*: 15.70%

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

VT vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VT Vanguard Total World Stock ETF	12.36%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%
SPY State Street SPDR S&P 500 ETF	9.74%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VT and SPY is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008	0.94

The correlation between VT and SPY has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

VT vs. SPY - Sectors Allocation Comparison

Sectors	VT	SPY
Technology	31.1%	39.0%
Financial Services	15.2%	11.1%
Industrials	11.4%	7.8%
Consumer Cyclical	9.3%	9.9%
Communication Services	8.0%	10.6%
Healthcare	7.9%	8.3%
Consumer Defensive	4.5%	4.5%
Basic Materials	4.1%	1.7%
Energy	3.8%	3.1%
Utilities	2.4%	2.1%
Real Estate	2.3%	1.8%

Return for Risk

VT vs. SPY — Risk / Return Rank

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

VT

VT Risk / Return Rank: 70
VT Sharpe Ratio Rank: 71
VT Sortino Ratio Rank: 70
VT Omega Ratio Rank: 71
VT Calmar Ratio Rank: 64
VT Martin Ratio Rank: 73

SPY

SPY Risk / Return Rank: 68
SPY Sharpe Ratio Rank: 69
SPY Sortino Ratio Rank: 66
SPY Omega Ratio Rank: 68
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 74

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.

VT vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) 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.

	VT	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.21	2.16	+0.06
Sortino ratio: Return per unit of downside risk	3.03	2.91	+0.12
Omega ratio: Gain probability vs. loss probability	1.40	1.39	+0.01
Calmar ratio: Return relative to maximum drawdown	3.07	3.01	+0.06
Martin ratio: Return relative to average drawdown	13.35	13.54	-0.18

VT vs. SPY - Sharpe Ratio Comparison

The current VT Sharpe Ratio is 2.21, which is comparable to the SPY Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of VT 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

VT vs. SPY - Drawdown Comparison

The maximum VT drawdown since its inception was -50.27%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VT and SPY.

Drawdown Indicators

	VT	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-55.19%	+4.92%
Max Drawdown (1Y) Largest decline over 1 year	-9.67%	-8.88%	-0.79%
Max Drawdown (3Y) Largest decline over 3 years	-16.51%	-18.76%	+2.25%
Max Drawdown (5Y) Largest decline over 5 years	-26.38%	-24.50%	-1.88%
Max Drawdown (10Y) Largest decline over 10 years	-34.24%	-33.72%	-0.52%
Current Drawdown Current decline from peak	-0.77%	-1.75%	+0.98%
Average Drawdown Average peak-to-trough decline	-7.00%	-9.04%	+2.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	1.97%	+0.25%

Volatility

VT vs. SPY - Volatility Comparison

Vanguard Total World Stock ETF (VT) has a higher volatility of 5.23% compared to State Street SPDR S&P 500 ETF (SPY) at 4.64%. This indicates that VT'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

	VT	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.23%	4.64%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	11.12%	9.75%	+1.37%
Volatility (1Y) Calculated over the trailing 1-year period	13.44%	12.43%	+1.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.16%	17.14%	-0.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	17.99%	-0.72%

VT vs. SPY - Expense Ratio Comparison

VT has a 0.06% 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

VT vs. SPY - Dividend Comparison

VT's dividend yield for the trailing twelve months is around 1.58%, more than SPY's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.01%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
VT Vanguard Total World Stock ETF	1.58%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both VT and SPY in my portfolio?

With a correlation of 0.96, VT and SPY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VT or SPY?

VT has higher volatility (5.23%) compared to SPY (4.64%). In terms of maximum drawdown, VT dropped -50.27% vs SPY's -55.19%.

Which ETF is better, VT or SPY?

On 10-year performance, SPY leads with 15.70% vs 13.20% for VT. On fees, VT is cheaper at 0.06% per year. On volatility, SPY has been the lower-risk option at 4.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VT or SPY?

Over the 10-year period, SPY has performed better with a 15.70% return vs 13.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VT or SPY?

VT is cheaper with a 0.06% expense ratio, compared with 0.09% for SPY.

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

VT has the higher dividend yield at 1.58%, compared with 1.01% for SPY.

What is the main difference between VT and SPY?

VT is categorized as Global Equities, while SPY is S&P 500. VT tracks FTSE Global All Cap Index, while SPY tracks S&P 500 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.06% for VT and 0.09% for SPY.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (2.21 vs 2.16), 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.