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ETF Comparison

SPY vs VIG: Which Is the Better Pick in 2026?

A head-to-head comparison of SPDR S&P 500 ETF Trust and Vanguard Dividend Appreciation Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.
  • VIGInvestors who want higher current income (1.62% vs 0.99% for SPY).

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSPYVIG
Full nameSPDR S&P 500 ETF TrustVanguard Dividend Appreciation Index Fund ETF Shares
IssuerState StreetVanguard
Last Close$772.49 as of August 13, 2026$246.19 as of August 13, 2026
Distribution yield0.99%1.62%
Distribution Safety Score™ 100100
Expense ratio0.10%0.06%
AUM$812B$114B
Distribution frequencyQuarterlyQuarterly
Underlying indexS&P 500 Indexa basket of Vanguard Dividend Appreciation ETF holdings
ObjectiveTrack the S&P 500 Index before expenses.Seeks to track the performance of the S&P U.S. Dividend Growers Index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments.
Asset classEquityEquity
Inception date01/22/199304/21/2006
Beta1.00.74
Last dividend$1.9035$0.9990
Ex-dividend date06/18/202606/26/2026

Bottom lineChoose SPY if you want simple, diversified core exposure in one low-cost fund. Choose VIG if you want higher current income (1.62% vs 0.99% for SPY).

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Income calculator

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State Street
ETFs180
Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs
Vanguard
ETFs116
Total AUM$4657B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VIG.

See all Vanguard ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SPY has outpaced VIG over the trailing twelve months, posting a 22.82% total return against 21.04%. The lead holds up over 10 years too: SPY has compounded at 15.28% a year, against 13.21% for VIG. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Apr 2006Volatility Sharpe Sortino Max drawdown
SPY13.68%22.82%21.44%13.24%15.28%11.16%15.3%0.981.42-18.8%
VIG12.51%21.04%16.66%10.80%13.21%10.33%12.3%0.901.30-15.0%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Apr 2006” measures every fund from April 27, 2006 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SPY (SPDR S&P 500 ETF Trust) and VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) are both quarterly-pay dividend ETFs, but they take different approaches.

VIG offers the higher yield at 1.62% vs 0.99% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VIG is cheaper with an expense ratio of 0.06% compared to 0.10%.

They track different benchmarks: SPY is linked to S&P 500 Index while VIG tracks a basket of Vanguard Dividend Appreciation ETF holdings, which means their performance drivers differ.

SPY is the larger fund by assets ($812B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SPY would generate roughly $8.25/month, while VIG would produce $13.50/month, at current distribution rates. Both pay quarterly distributions.

SPY yield0.99%
VIG yield1.62%
Monthly diff on $10K$5.25

Cost & efficiency

Over 10 years on $10,000, SPY would cost approximately $100 in fees vs $60 for VIG (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

SPY ER0.10%
VIG ER0.06%

Strategy & risk

SPY tracks S&P 500 Index with a large cap approach, while VIG holds a basket of Vanguard Dividend Appreciation ETF holdings with an index approach. Beta is 1.0 for SPY and 0.74 for VIG, indicating VIG is less volatile relative to the market.

SPY beta1.0
VIG beta0.74

Fund details

SPY is managed by State Street (launched 01/22/1993) with $812B in assets. VIG is managed by Vanguard (launched 04/21/2006) with $114B in assets.

SPY AUM$812B
VIG AUM$114B
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Frequently asked questions

What is the current distribution yield for SPY and VIG?

SPY currently distributes 0.99% and VIG 1.62%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPY or VIG better for dividend income?

It depends on your goals. VIG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SPY and VIG?

SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach, while VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) holds a basket of Vanguard Dividend Appreciation ETF holdings with an index approach. They are issued by State Street and Vanguard respectively.

Can I hold both SPY and VIG?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SPY or VIG safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: SPY scores 100, VIG scores 100. Neither has a clear safety edge on that measure. VIG has also shown lower price volatility (beta 0.74 vs 1.00 for SPY). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SPY or VIG?

SPY has an expense ratio of 0.10% while VIG charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SPY vs VIG generate?

At current rates, $10,000 in SPY would generate roughly $8.25 per month ($99.00 annually). The same in VIG would produce about $13.50 per month ($162.00 annually).

Which has performed better historically, SPY or VIG?

SPY has outpaced VIG over the trailing twelve months, posting a 22.82% total return against 21.04%. The lead holds up over 10 years too: SPY has compounded at 15.28% a year, against 13.21% for VIG. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SPY vs VIG — at a glance

Generated August 8, 2026.

Overview

SPY and VIG are both large-cap equity ETFs tracking different S&P-managed indexes. SPY aims to replicate the broad S&P 500 Index with near-total market participation; VIG is narrower, holding only companies with at least 10 years of consecutive dividend increases. This fundamental difference in eligibility rules creates two distinct equity sleeves: one market-weighted exposure to 500 large and mid-cap names, the other a screened dividend-grower subset.

How they differ

The biggest difference is strategy: SPY holds the entire S&P 500 regardless of dividend history, while VIG filters for dividend raisers, excluding non-payers and cutting its universe significantly. That screening shows up in volatility — VIG carries a beta of 0.75 versus SPY's 1.0, suggesting lower swings relative to broad equity markets. On yield, VIG pays 1.63% versus SPY's 0.98%, a 65-basis-point spread that reflects the dividend-raiser tilt. Both charge minimal fees, but VIG's 0.06% expense ratio undercuts SPY's 0.10%. VIG is much smaller at $114B in assets versus SPY's $812B, a scale difference that can matter in tight market environments.

Who each is best for

SPY: Fits investors seeking simple, market-weight exposure to large-cap U.S. equities with minimal fees and no screen applied; works for core allocations where broad index participation matters more than dividend income.

VIG: Fits investors drawn to a dividend-growth tilt who tolerate lower market sensitivity; matches portfolios emphasizing stable payout history and reduced volatility relative to the overall market.

Key risks to know

  • Dividend sustainability and cut risk. While VIG holds dividend raisers, that history doesn't guarantee future raises or prevent dividend cuts during recessions or earnings stress. The 2020 energy sector cuts showed this gap between past performance and forward safety.
  • Lower market participation with VIG. The beta of 0.75 means VIG will lag SPY in strong bull markets where non-dividend-payers and recently profitable tech names drive gains. The 10-year dividend-raiser screen excludes companies like Nvidia and Magnificent Seven peers that have dominated recent periods.
  • Different sector and factor exposure. SPY's full 500-name weight includes utilities, healthcare, and consumer staples (historically high dividend payers) but also growth and tech with minimal yields. VIG's screen tilts it toward sectors with long-payout histories, creating concentrated sector and style bets that may look cheap or expensive depending on market regime.
  • Correlation during stress. Both hold large-cap U.S. equities, so their holdings overlap significantly; neither provides meaningful diversification from broad equity risk during market dislocations.

Bottom line

SPY offers total market participation with the lowest fees and largest trading liquidity; VIG trades some market exposure for a dividend-raiser filter and lower volatility, with a modestly higher yield. The choice hinges on whether you want unfiltered S&P 500 exposure or are willing to accept lower market participation to emphasize companies with long dividend-raise histories. Past performance doesn't predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

What the distribution rate really tells you Why a high yield isn't high income How to read a fund's stats T-bills vs. money market funds vs. CDs

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