SPY vs VIG: SPDR S&P 500 ETF Trust vs Vanguard Dividend Appreciation ETF Comparison
Compare SPY (SPDR S&P 500 ETF Trust) and VIG (Vanguard Dividend Appreciation ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Expense ratio: VIG 0.06% vs SPY 0.0945% (VIG is 0.03%p cheaper)
- 2Dividend yield: VIG 1.68% vs SPY 1.26%
- 3Category: SPY is Index Tracking, VIG is Dividend ETFs
- 4Holdings: SPY 503 vs VIG 289
- 5Issuer: SPY (State Street(SPDR)) vs VIG (Vanguard)
Conclusion
SPY and VIG each have different strengths, so the choice depends on your investment objectives. Choose the one with lower fees if cost is a priority, or the one with higher yield if income is your goal.
| Category | SPY | VIG |
|---|---|---|
| Fund Name | SPDR S&P 500 ETF Trust | Vanguard Dividend Appreciation ETF |
| Current Price | ... | ... |
| Category | Index Tracking | Dividend ETFs |
| Expense Ratio | 0.0945% | 0.06% |
| Dividend Yield | 1.26% | 1.68% |
| Holdings | 503 | 289 |
SPY Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Alphabet
VIG Top Holdings
- 1. Microsoft
- 2. Apple
- 3. Broadcom
- 4. JPMorgan
- 5. UnitedHealth
SPY Features
- •Tracks the S&P 500
- •Highest liquidity
- •Market representativeness
- •Long-established ETF
VIG Features
- •Dividend growth
- •High-quality companies
- •Low expense ratio
- •Stability
Pros & Cons
SPY
Advantages
- ✓ Total US market exposure
- ✓ Very high liquidity
- ✓ Stable management
Disadvantages
- ⚠ Market risk
- ⚠ Large-cap concentration
- ⚠ Potential growth slowdown
VIG
Advantages
- ✓ Continuous dividend growth
- ✓ Quality company selection
- ✓ Inflation hedge
Disadvantages
- ⚠ Underperformance vs. growth stocks
- ⚠ Interest rate sensitive
- ⚠ Sector bias
Investment Strategy
Best For: SPY
Use as core asset; maintain 30-50% portfolio allocation
Best For: VIG
Core dividend strategy; hold long-term; consider combining with SCHD
Detailed Analysis
SPY (SPDR S&P 500 ETF Trust) and VIG (Vanguard Dividend Appreciation ETF) They belong to different categories — Index Tracking and Dividend ETFs — representing distinct investment areas. SPY: SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund that provides investors with exposure to broad market indices. It carries an expense ratio of 0.09%. The fund offers a dividend yield of approximately 1.26%. The portfolio holds 503 securities. With an expense ratio of 0.0945% and dividend yield of 1.26%, its top holdings include Apple, Microsoft, Amazon. Key features include Tracks the S&P 500, Highest liquidity, with Total US market exposure being a major advantage. VIG: Vanguard Dividend Appreciation ETF (VIG) is an exchange-traded fund that provides investors with exposure to dividend-paying equities. It carries an expense ratio of 0.06%. The fund offers a dividend yield of approximately 1.68%. The portfolio holds 289 securities. With an expense ratio of 0.06% and dividend yield of 1.68%, top holdings include Microsoft, Apple, Broadcom. Notable features are Dividend growth, High-quality companies, with Continuous dividend growth as a core strength. In terms of expense ratio, VIG is 0.03%p cheaper, which can lead to significant cost savings through compounding over long-term investment. Over 20 years with a $100,000 investment, this difference can amount to thousands of dollars.
Investment Recommendation
SPY is suitable for Use as core asset; maintain 30-50% portfolio allocation, while VIG is suitable for Core dividend strategy; hold long-term; consider combining with SCHD. Since they are in different categories, holding both can provide portfolio diversification benefits. Adjust the allocation based on your risk tolerance and investment horizon. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both SPY and VIG are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
SPY vs VIG Investment Guide
Both SPY and VIG are popular US ETFs, but they differ in investment strategy and portfolio role. SPY has an expense ratio of 0.0945%, while VIG charges 0.06%, giving VIG a cost advantage. In terms of dividend yield, SPY offers 1.26% while VIG offers 1.68%, making VIG the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.