Dividend comparison

SPY vs VFIAX: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street SPDR S&P 500 ETF and Vanguard 500 Index Fund Admiral Shares, side by side. Updated October 21, 2026.

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SPY vs VFIAX: key differences
The short answer, from the latest data on this page.
  • Income. Their trailing yields are almost the same: 0.98% for SPY and 1.04% for VFIAX. Both pay quarterly.
  • Performance. Over the last 5 years, SPY returned 81.3% versus 80.1% for VFIAX, with dividends reinvested. $10,000 would have grown to $18,129 in SPY and $18,011 in VFIAX.
  • Risk. Their worst declines over the last 5 years were similar: -24.5% for SPY and -24.5% for VFIAX from peak to trough.
  • Diversification. SPY holds 504 positions and VFIAX holds 100. The ten largest positions make up 38.7% of SPY and 39.1% of VFIAX.
  • Overlap. At least 73% of the two portfolios overlap by weight, across 97 shared holdings. Owning both adds little diversification.
  • Dividend growth. VFIAX grew its yearly payout 6.8% a year over the last 4 years, versus 6.4% for SPY.

Bottom line: SPY has the edge on these figures, with broader diversification. VFIAX does not lead on any of the measures compared here. With 73% overlap, most investors would hold one or the other rather than both.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricSPY
State Street SPDR S&P 500 ETF
VFIAX
Vanguard 500 Index Fund Admiral Shares
Dividend yield (TTM)0.98%1.04%
Dividend / share (TTM)$7.53$7.42
Payout frequencyQuarterlyQuarterly
Last dividend$1.9035 on Jul 31, 2026$1.8186 on Sep 29, 2026
Ex-dividend dateSep 18, 2026Sep 28, 2026
Next payment$1.8888 on Oct 30, 2026—
Dividend growth (CAGR)6.4% over 4 yrs6.8% over 4 yrs
Price$769.05$711.99
Dividend growth streak16 years5 years
Beta1.011.01
Max drawdown (5Y)-24.5%-24.5%
Market cap$813.99B$1.73T
ExchangeAMEXNASDAQ
Expense ratio0.09%—
Assets under management$816.57B—
Number of holdings504100
Top 10 concentration38.7%39.1%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

SPY

$8.15/mo

$98 /yr at 0.98% yield

VFIAX

$8.68/mo

$104 /yr at 1.04% yield

Dividend history
Total dividends paid per share in each calendar year. SPY pays quarterly; VFIAX pays quarterly.
YearSPYVFIAX
2025$7.2533$7.0637
2024$7.0056$6.7049
2023$6.5091$6.3670
2022$6.1723$5.9527
2021$5.6618$5.4367
Strategy: Broad index
Low-cost funds that hold an entire market or index at market-cap weights and make no attempt to select securities. Return is the index return less a small fee, and dividends are a by-product of what the underlying companies choose to pay rather than an objective of the strategy. Differences between funds tracking the same index usually come down to fee, wrapper structure, share price and trading liquidity, not to holdings.

Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.

What SPY vs VFIAX actually do

SPY
The original S&P 500 ETF, launched in 1993 and still the most heavily traded equity fund in the world.

It holds the same 500 companies as its rivals, but it is structured as a unit investment trust rather than an open-end fund, an older wrapper that must hold every constituent and cannot put dividends back to work inside the fund before the quarterly payment date. That leaves a small cash drag and it carries a higher expense ratio than the newer S&P 500 trackers, around three times VOO's. What it buys instead is unmatched liquidity and by far the deepest options market of any S&P 500 fund.

Suits traders, options sellers and anyone who needs to move size with tight spreads. For a long-term buy-and-hold position the structural drag and higher fee work against it compared with the newer alternatives.

Core holding, trading vehicle

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $18,129 in SPY and $18,011 in VFIAX.
PeriodSPYVFIAX
1 month0.97%0.62%
3 months3.63%3.43%
Year to date13.37%12.69%
1 year15.51%14.48%
3 years88.86%87.46%
5 years81.29%80.11%
  • SPY
  • VFIAX
73132190202120222023202420252026181180

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • SPY
  • VFIAX
0%10%19%29%38%Technology38.4%Financial Services11.7%Communication Services9.8%Healthcare9.6%Consumer Cyclical8.8%Industrials8.0%Consumer Defensive4.7%Energy3.6%Utilities2.0%Real Estate1.7%Other1.9%
SPY vs VFIAX holdings overlap
At least 73% overlap by weight, with 97 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsSPY weightVFIAX weight
NVDANVIDIA CORP7.93%8.39%
AAPLAPPLE INC7.55%7.38%
MSFTMICROSOFT CORP5.98%5.78%
AMZNAMAZON.COM INC3.89%3.71%
GOOGLALPHABET INC CL A3.05%3.07%
GOOGALPHABET INC CL C2.44%2.45%
AVGOBROADCOM INC2.40%2.54%
METAMETA PLATFORMS INC CLASS A2.35%2.43%
MUMICRON TECHNOLOGY INC1.54%1.83%
TSLATESLA INC1.57%1.52%
Top 10 holdings
Largest positions by portfolio weight.

SPY504 holdings total

NameWeight
NVDANVIDIA CORP7.93%
AAPLAPPLE INC7.55%
MSFTMICROSOFT CORP5.98%
AMZNAMAZON.COM INC3.89%
GOOGLALPHABET INC CL A3.05%
GOOGALPHABET INC CL C2.44%
AVGOBROADCOM INC2.40%
METAMETA PLATFORMS INC CLASS A2.35%
TSLATESLA INC1.57%
MUMICRON TECHNOLOGY INC1.54%

VFIAX100 holdings total

NameWeight
NVDANVIDIA Corp8.39%
AAPLApple Inc7.38%
MSFTMicrosoft Corp5.78%
AMZNAmazon.com Inc3.71%
GOOGLAlphabet Inc3.07%
AVGOBroadcom Inc2.54%
GOOGAlphabet Inc2.45%
METAMeta Platforms Inc2.43%
MUMicron Technology Inc1.83%
TSLATesla Inc1.52%

Quick verdict

SPY has the edge on these figures, with broader diversification. VFIAX does not lead on any of the measures compared here. With 73% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is SPY or VFIAX better for dividend income?
It depends on your goals. SPY currently yields 0.98% Trailing Twelve Months (TTM) while VFIAX yields 1.04%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between SPY and VFIAX?
State Street SPDR S&P 500 ETF (SPY) is an ETF listed on AMEX. Vanguard 500 Index Fund Admiral Shares (VFIAX) is an ETF listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which has performed better, SPY or VFIAX?
Over the last 5 years, SPY has the higher total return with dividends reinvested: SPY returned 81.3% and VFIAX returned 80.1%. Past performance does not predict future returns.
Which is riskier, SPY or VFIAX?
Measured by the worst peak-to-trough decline over the last five years, VFIAX has been riskier: SPY fell as much as 24.5% and VFIAX as much as 24.5%. Their betas are 1.01 and 1.01.
How much do SPY and VFIAX overlap?
At least 73% of the two portfolios overlap by weight, across 97 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both adds little diversification.
How often do SPY and VFIAX pay dividends?
Both pay quarterly. The most recent payments were $1.9035 for SPY and $1.8186 for VFIAX.
How much income does $10,000 in SPY vs VFIAX generate?
At current TTM yields, $10,000 in SPY would generate roughly $8.15 per month ($98 annually). The same amount in VFIAX would produce about $8.68 per month ($104 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SPY and VFIAX?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare SPY vs VFIAX with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SPY and VFIAX fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.