VTI charges a much lower expense ratio than SPY while also offering a marginally higher dividend yield.
SPY has delivered a slightly higher one-year total return and experienced a smaller maximum drawdown than VTI.
VTI holds thousands more stocks, covering the full U.S. equity market, while SPY focuses on S&P 500 large-caps.
The State Street SPDR S&P 500 ETF Trust (NYSEMKT:SPY) and the Vanguard Total Stock Market ETF (NYSEMKT:VTI) are both designed for broad U.S. stock market exposure, but they differ in scope and cost.
SPY tracks the S&P 500 Index, focusing on large-cap companies, while VTI holds thousands of stocks across all market capitalizations, offering access to a more comprehensive slice of the U.S. market.
This comparison highlights the key differences to help investors weigh which may better fit their portfolio goals.
| Metric | SPY | VTI |
|---|---|---|
| Issuer | SPDR | Vanguard |
| Expense ratio | 0.09% | 0.03% |
| 1-yr return (as of Feb. 5, 2026) | 13.13% | 12.43% |
| Dividend yield | 1.05% | 1.10% |
| Beta (5Y monthly) | 1.00 | 1.04 |
| AUM | $709 billion | $571 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
VTI is more affordable on fees, charging just one-third of SPY’s expense ratio. VTI also has a slight edge on dividend yield, making it appealing for both cost-conscious and income-seeking investors.
| Metric | SPY | VTI |
|---|---|---|
| Max drawdown (5 y) | -24.50% | -25.36% |
| Growth of $1,000 over 5 years | $1,764 | $1,656 |
SPY has had a slightly milder maximum drawdown over the past five years and also outpaced VTI in cumulative growth, suggesting marginally stronger risk-adjusted results for large-cap-focused investors.
VTI casts a wide net, holding roughly 3,600 stocks and covering the full U.S. equity spectrum — large-, mid-, and small-caps — with a notable tilt toward technology (33%), financial services (13%), and consumer cyclical (10%).
Its largest positions are Nvidia, Apple, and Microsoft. The fund’s 24-year history and massive assets under management (AUM) contribute to its liquidity and stability, but its broad approach also exposes it to smaller, sometimes less liquid companies.
SPY, in contrast, focuses strictly on the S&P 500, heavily weighted toward technology (34%), financial services (13%), and communication services (11%). Its top holdings match VTI’s, but with slightly higher allocations.
For more guidance on ETF investing, check out the full guide at this link.
SPY and VTI both provide broad exposure to the overall market, and each has a distinct way to mitigate risk.
SPY focuses exclusively on large-cap stocks within the S&P 500, which can help reduce volatility. Large, industry-leading companies tend to be more stable than smaller corporations, especially during periods of economic turbulence.
VTI, on the other hand, encompasses the entire stock market, with around seven times as many holdings as SPY. It‘s tough to find a U.S. equities fund more diversified than VTI, and that broad diversification can also help manage volatility. If a few stocks — or even an entire sector — takes a turn for the worse, there are plenty of other holdings to prop up the fund.
Both ETFs have experienced similar one- and five-year total returns, though SPY has edged slightly ahead in both periods. SPY has also experienced marginally less volatility, with a milder maximum drawdown and a lower beta. The figures are so similar, though, that investors may not notice a meaningful difference between the two.
Investors looking for pure large-cap exposure may find SPY’s more concentrated approach appealing, while those seeking total market breadth may prefer VTI’s reach.
Before you buy stock in Vanguard Total Stock Market ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Total Stock Market ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 7, 2026.
Katie Brockman has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
