Dividend comparison

SPY vs VUG: Which Is Better?

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

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SPY vs VUG: key differences
The short answer, from the latest data on this page.
  • Fees. VUG is cheaper at 0.03% a year versus 0.09% for SPY. On $10,000 that is $6 a year less in fees.
  • Income. SPY pays more income, yielding 0.98% over the last twelve months versus 0.39% for VUG. That is about $59 more a year on $10,000. Both pay quarterly.
  • Performance. Over the last 5 years, SPY returned 81.3% versus 78.4% for VUG, with dividends reinvested. $10,000 would have grown to $18,129 in SPY and $17,845 in VUG.
  • Risk. VUG has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -35.6%, against -24.5% for SPY.
  • Diversification. SPY holds 504 positions and VUG holds 166. The ten largest positions make up 38.7% of SPY and 63.1% of VUG.
  • Overlap. At least 52% of the two portfolios overlap by weight, across 42 shared holdings.
  • Dividend growth. VUG grew its yearly payout 6.9% a year over the last 4 years, versus 6.4% for SPY.
  • Size. SPY is the larger fund with $816.6 billion in assets, against $392.2 billion for VUG.

Bottom line: SPY fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns and broader diversification. VUG fits better if you care most about lower fees.

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
VUG
Vanguard Morningstar Growth ETF
Dividend yield (TTM)0.98%0.39%
Dividend / share (TTM)$7.53$0.35
Payout frequencyQuarterlyQuarterly
Last dividend$1.9035 on Jul 31, 2026$0.0910 on Sep 30, 2026
Ex-dividend dateSep 18, 2026Sep 28, 2026
Next payment$1.8888 on Oct 30, 2026—
Dividend growth (CAGR)6.4% over 4 yrs6.9% over 4 yrs
Price$769.05$88.67
Dividend growth streak16 years3 years
Beta1.011.27
Max drawdown (5Y)-24.5%-35.6%
Market cap$813.99B$392.24B
ExchangeAMEXAMEX
Expense ratio0.09%0.03%
Assets under management$816.57B$392.20B
Number of holdings504166
Top 10 concentration38.7%63.1%
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

VUG

$3.25/mo

$39 /yr at 0.39% yield

Dividend history
Total dividends paid per share in each calendar year. SPY pays quarterly; VUG pays quarterly.
YearSPYVUG
2025$7.2533$0.3351
2024$7.0056$0.3188
2023$6.5091$0.3003
2022$6.1723$0.2499
2021$5.6618$0.2567
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 VUG 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 $17,845 in VUG.
PeriodSPYVUG
1 month0.97%0.01%
3 months3.63%4.01%
Year to date13.37%9.40%
1 year15.51%10.23%
3 years88.86%99.93%
5 years81.29%78.45%
  • SPY
  • VUG
61127193202120222023202420252026181178

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
  • VUG
0%15%30%45%60%Technology38.4%60.2%Communication Services9.8%14.7%Consumer Cyclical8.8%9.8%Financial Services11.7%3.9%Healthcare9.6%4.2%Industrials8.0%4.4%Consumer Defensive4.7%1.3%Energy3.6%0.3%Utilities2.0%0.8%Real Estate1.7%0.9%Other1.9%0.4%
SPY vs VUG holdings overlap
At least 52% overlap by weight, with 42 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 weightVUG weight
NVDANVIDIA CORP7.93%13.48%
AAPLAPPLE INC7.55%12.50%
MSFTMICROSOFT CORP5.98%9.74%
AMZNAMAZON.COM INC3.89%4.26%
GOOGLALPHABET INC CL A3.05%5.16%
GOOGALPHABET INC CL C2.44%4.09%
AVGOBROADCOM INC2.40%4.34%
METAMETA PLATFORMS INC CLASS A2.35%4.23%
TSLATESLA INC1.57%2.65%
LLYELI LILLY + CO1.50%2.60%
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%

VUG166 holdings total

NameWeight
NVDANVIDIA Corp13.48%
AAPLApple Inc12.50%
MSFTMicrosoft Corp9.74%
GOOGLAlphabet Inc5.16%
AVGOBroadcom Inc4.34%
AMZNAmazon.com Inc4.26%
METAMeta Platforms Inc4.23%
GOOGAlphabet Inc4.09%
AMDAdvanced Micro Devices Inc2.66%
TSLATesla Inc2.65%

Quick verdict

SPY fits better if you care most about more income today, stronger 5-year returns, smaller drawdowns and broader diversification. VUG fits better if you care most about lower fees. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is SPY or VUG better for dividend income?
It depends on your goals. SPY currently yields 0.98% Trailing Twelve Months (TTM) while VUG yields 0.39%. 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 VUG?
State Street SPDR S&P 500 ETF (SPY) is an ETF listed on AMEX. Vanguard Morningstar Growth ETF (VUG) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, SPY or VUG?
VUG has the lower expense ratio. SPY charges 0.09% a year and VUG charges 0.03%, a difference of $6 a year on a $10,000 investment.
Which has performed better, SPY or VUG?
Over the last 5 years, SPY has the higher total return with dividends reinvested: SPY returned 81.3% and VUG returned 78.4%. Past performance does not predict future returns.
Which is riskier, SPY or VUG?
Measured by the worst peak-to-trough decline over the last five years, VUG has been riskier: SPY fell as much as 24.5% and VUG as much as 35.6%. Their betas are 1.01 and 1.27.
How much do SPY and VUG overlap?
At least 52% of the two portfolios overlap by weight, across 42 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both still adds meaningful diversification.
How often do SPY and VUG pay dividends?
Both pay quarterly. The most recent payments were $1.9035 for SPY and $0.0910 for VUG.
How much income does $10,000 in SPY vs VUG generate?
At current TTM yields, $10,000 in SPY would generate roughly $8.15 per month ($98 annually). The same amount in VUG would produce about $3.25 per month ($39 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both SPY and VUG?
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 VUG with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how SPY and VUG 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.