VUG vs. SPY

Last updated Jun 14, 2026

VUG (Vanguard Growth ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VUG returned 17.90%/yr vs 15.42%/yr for SPY. Their correlation of 0.94 suggests significant overlap in exposure. VUG charges 0.03%/yr vs 0.09%/yr for SPY.

Performance

VUG vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a 4.99% return, which is significantly lower than SPY's 9.07% return. Over the past 10 years, VUG has outperformed SPY with an annualized return of 17.90%, while SPY has yielded a comparatively lower 15.42% annualized return.

VUG

• 1D: 0.18%
• 1M: -3.64%
• YTD: 4.99%
• 6M: 5.66%
• 1Y: 22.83%
• 3Y*: 23.38%
• 5Y*: 13.78%
• 10Y*: 17.90%

SPY

• 1D: 0.54%
• 1M: -0.86%
• YTD: 9.07%
• 6M: 9.42%
• 1Y: 25.67%
• 3Y*: 20.86%
• 5Y*: 13.36%
• 10Y*: 15.42%

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

VUG vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	4.99%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%
SPY State Street SPDR S&P 500 ETF	9.07%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VUG and SPY is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.94

The correlation between VUG and SPY has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.

VUG vs. SPY - Sectors Allocation Comparison

Sectors	VUG	SPY
Technology	53.5%	39.0%
Communication Services	17.3%	10.6%
Consumer Cyclical	12.2%	9.9%
Healthcare	4.6%	8.3%
Financial Services	4.3%	11.1%
Industrials	3.6%	7.8%
Consumer Defensive	1.5%	4.5%
Real Estate	1.0%	1.8%
Utilities	0.9%	2.1%
Basic Materials	0.6%	1.7%
Energy	0.4%	3.1%

Return for Risk

VUG vs. SPY — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 36
VUG Sharpe Ratio Rank: 41
VUG Sortino Ratio Rank: 38
VUG Omega Ratio Rank: 40
VUG Calmar Ratio Rank: 30
VUG Martin Ratio Rank: 33

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 71
SPY Calmar Ratio Rank: 63
SPY Martin Ratio Rank: 76

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.

VUG vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.

	VUG	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.29	1.98	-0.69
Sortino ratio: Return per unit of downside risk	1.78	2.68	-0.90
Omega ratio: Gain probability vs. loss probability	1.23	1.36	-0.13
Calmar ratio: Return relative to maximum drawdown	1.29	2.74	-1.46
Martin ratio: Return relative to average drawdown	4.43	12.39	-7.96

VUG vs. SPY - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.29, which is lower than the SPY Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of VUG 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

VUG vs. SPY - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VUG and SPY.

Drawdown Indicators

	VUG	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-55.19%	+4.51%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-8.88%	-7.65%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-18.76%	-4.09%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-24.50%	-11.11%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-33.72%	-1.89%
Current Drawdown Current decline from peak	-5.56%	-2.35%	-3.21%
Average Drawdown Average peak-to-trough decline	-7.09%	-9.04%	+1.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.79%	1.97%	+2.82%

Volatility

VUG vs. SPY - Volatility Comparison

Vanguard Growth ETF (VUG) has a higher volatility of 5.73% compared to State Street SPDR S&P 500 ETF (SPY) at 4.34%. This indicates that VUG'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

	VUG	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	4.34%	+1.39%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	9.58%	+3.42%
Volatility (1Y) Calculated over the trailing 1-year period	16.46%	12.29%	+4.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	17.12%	+5.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	17.96%	+3.52%

VUG vs. SPY - Expense Ratio Comparison

VUG has a 0.03% 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

VUG vs. SPY - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.39%, less 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%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and SPY in my portfolio?

With a correlation of 0.93, VUG 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, VUG or SPY?

VUG has higher volatility (5.73%) compared to SPY (4.34%). In terms of maximum drawdown, VUG dropped -50.68% vs SPY's -55.19%.

Which ETF is better, VUG or SPY?

On 10-year performance, VUG leads with 17.90% vs 15.42% for SPY. On fees, VUG is cheaper at 0.03% per year. On volatility, SPY has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUG or SPY?

Over the 10-year period, VUG has performed better with a 17.90% return vs 15.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or SPY?

VUG is cheaper with a 0.03% expense ratio, compared with 0.09% for SPY.

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

SPY has the higher dividend yield at 1.00%, compared with 0.39% for VUG.

What is the main difference between VUG and SPY?

VUG is categorized as Large Cap Growth Equities, while SPY is S&P 500. VUG tracks CRSP US Large Cap Growth Index, while SPY tracks S&P 500 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VUG and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.98 vs 1.29), 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.