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VTI Vs SPY: Which one is Better?

When you start investing in ETFs, the main question you ask yourself is which ETF you should buy? With more than 2000 ETFs available in the market, the choice is not easy as it seems.

When you start investing in ETFs, the main question you ask yourself is which ETF you should buy? With more than 2000 ETFs available in the market, the choice is not easy as it seems.

Would you prefer to invest in an ETF that tracks one specific index or an ETF that invests and cover the overall market?

Vanguard Total Stock Market ETF VS  SPDR S&P 500 ETF Trust

TickerVTISPY
Expense Ratio0.03%0.09%
IssuerVanguardState Street Global Advisors
Underlying IndexCRSP US Total Market IndexS&P 500
Assets Under Management$246B$346.10B
Average Daily $ Volume$4.47B$36.64B
Dividend Yield1.19%1.58%

SPDR S&P 500 ETF Trust (SPY)

SPY is the oldest ETF tracking the major U.S. index, the S&P 500, and has grown to become one of the largest ETFs in the world, with an annual10-year return of 12.98%.

It is the world's most liquid ETF, with over $346.10 billion in assets under management (AUM) and an average daily volume of $36.64 billion.

Top 10 Sectors:

  • Technology Services          17.17%
  • Electronic Technology        14.26%
  • Finance                              13.34%
  • Health Technology             11.47%
  • Retail Trade                        7.42%
  • Consumer Non-Durables    5.88% 
  • Energy Minerals                 3.73%
  • Producer Manufacturing    3.50%
  • Consumer Services           3.50%
  • Utilities                               3.13%

Top 10 Holdings: 

  • Apple                                                       6.57%
  • Microsoft                                                  6.00%
  • Amazon                                                    2.90%                                           
  • Alphabet(Google) Class A                       2.05%
  • Alphabet(Google) Class C                       1.88%
  • Tesla                                                        1.76%
  • Berkshire Hathaway                                1.54%
  • Unitedhealth group                                  1.51%
  • Johnson & Johnson                                 1.46%
  • NVIDIA Corporation                                1.19%

Vanguard Total Stock Market ETF (VTI)

VTI holds thousands of different stocks from all industries to provide broad coverage of the U.S. equity market. As a result, VTI is an appealing choice for investors looking to diversify their portfolios.

Top 10 Sectors:

  • Technology Services          25.80%
  • Health care                        14.30%
  • Consumer Discretianory    13.80% 
  • Industrials                          12.70%
  • Finance                              11.20%
  • Consumer staples               5.80%
  • Energy Minerals                  4.50%
  • Real Estate                         3.70%
  • Utilities                                3.41%
  • Telecommunication             2.70%
  • Basic materials                   2.10%

Top 10 Holdings:

Apple                                       5.58%

Microsoft                         4.93%

Amazon                         2.51%

Alphabet(Google) Class A 1.67%

Tesla                                     1.52%

Alphabet(Google) Class C 1.47%

Unitedhealth group             1.27%

Johnson & Johnson             1.24%

Berkshire Hathaway             1.21%

U.S. Dollar                            1.09%.

SPY Vs VTI: Comparison

Fees:

The SPY ETF have higher fees, considering that it is well known and reputable, the management of the SPY ask for more fees than other ETFs.

In this situation the SPY charges 0.09% and the VTI only 0.03%.

Cumulative Performances SPY Vs VTI:

Performance as of 19/07/22SPYVTI
1 Year-10.17%-12.92%
3 Years34.49%31.46%
5 Years71.05%66.04%

Obviously, the SPY has better results as it contains fewer stocks than the VTI. However, they are almost similar in their top 10 holdings.

The difference is that when you are too diversified, the performance decreases.

The SPY has 501 holdings and the VTI 4059.

How to Buy SPY or VTI ETFs?

Step 1 - Find the best investment app: 

Picking a proper broker gives you a competitive advantage; you can browse our comparison page of the best trading apps to determine which one you need.

Step 2 - Open an account:

Once you find the best trading platform, it's time to open an account. Simply click on the button on our comparison page, and you can proceed directly to the brokers' registration page.

You must fill in the required information and expect an email confirming the activation of your account.

Step 3 - Verify your identity:

It is necessary if you want to use the platform's functionalities and deposit or withdraw money. Specific platforms will let you make a small deposit but cannot withdraw until the application process is complete.

Here, you will upload your ID and, depending on the platform, other supporting documents to verify your identity.

Sometimes, you might receive a phone call from a company's sales representatives.

The application may take a couple of hours to several days to complete.

Step 4 - Deposit funds:

After verifying your identity, you can deposit using several methods:

  • Credit/debit cards
  • Bank transfers,
  • Mobile wallets (Paypal).

Step 5 - Buy SPY or VTI ETFs: 

Once the account is active, you can search for “SPY” or “VTI” on the platform and click on buy.

Start Investing Now

SPY and VTI are not precisely similar. The VTI is less risky but with lower returns.

In addition, the expense ratio favors the VTI, so everything depends on your investment profile.

If you are a risk taker and want better returns, then go for the SPY, in the other hand, if you want more security and convenable returns with lower fees, then the VTI is your best choice.

Having a portfolio requires you to monitor and keep track of your investments. We have specially built an investment tracking spreadsheet to facilitate this for you.

Knowing which best US ETF to get, check out our investment platform comparison page, and select the perfect broker to get you started.

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