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ETF Comparison

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

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

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.
  • VYMInvestors who want higher current income (2.29% vs 0.99% for SPY).

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

SPY has outpaced VYM over the trailing twelve months, posting a 16.15% total return against 13.16%. The lead holds up over 10 years too: SPY has compounded at 15.32% a year, against 11.36% for VYM. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Nov 2006Volatility Sharpe Sortino Max drawdown
SPY12.50%16.15%22.81%13.41%15.32%10.91%15.2%1.061.55-18.8%
VYM9.11%13.16%18.20%11.30%11.36%9.09%12.4%0.991.44-14.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Nov 2006” measures every fund from November 16, 2006 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSPYVYM
Full nameSPDR S&P 500 ETF TrustVanguard High Dividend Yield ETF
IssuerState StreetVanguard
Underlying indexS&P 500 IndexFTSE High Dividend Yield Index
Last Close$762.63 as of September 30, 2026$155.20 as of September 30, 2026
Distribution rate0.99%2.29%
Trailing 12-month yield0.99%2.37%
Distribution Safety Score™ 10095
Safety-Adjusted Yield 0.99%2.18%
Expense ratio0.0945%0.04%
AUM$817B$80.2B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the S&P 500 Index before expenses.Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset classEquityEquity
Inception date01/22/199311/10/2006
Beta1.00.66
Last dividend$1.88883$0.887
Ex-dividend date09/18/202609/18/2026

Bottom lineChoose SPY if you want simple, diversified core exposure in one low-cost fund. Choose VYM if you want higher current income (2.29% vs 0.99% for SPY).

Model this comparison:
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

State Street
ETFs179
Total AUM$2148B

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$4677B

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 VYM.

See all Vanguard ETFs

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Quick verdict

SPY (SPDR S&P 500 ETF Trust) and VYM (Vanguard High Dividend Yield ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VYM offers the higher yield at 2.29% vs 0.99% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.04% compared to 0.0945%.

They have different reference exposures: SPY is linked to S&P 500 Index while VYM is linked to FTSE High Dividend Yield Index, which means their performance drivers differ.

SPY is the larger fund by assets ($817B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, SPY would generate roughly $24.75 cash per distribution, while VYM would produce $57.25 cash per distribution, at current distribution rates. Both pay quarterly distributions.

SPY yield0.99%
VYM yield2.29%
Cash diff on $10K$32.50

Cost & efficiency

Over 10 years on $10,000, SPY would cost approximately $95 in fees vs $40 for VYM (simplified, not compounded). The $54.50 difference may be offset by yield or performance.

SPY ER0.0945%
VYM ER0.04%

Strategy & risk

SPY tracks S&P 500 Index with a large cap approach, while VYM tracks FTSE High Dividend Yield Index. Beta is 1.0 for SPY and 0.66 for VYM, making VYM the less volatile of the two by this measure.

SPY beta1.0
VYM beta0.66

Fund details

SPY is managed by State Street (launched 01/22/1993) with $817B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $80.2B in assets.

SPY AUM$817B
VYM AUM$80.2B
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Frequently asked questions

What is the current distribution rate for SPY and VYM?

SPY currently distributes 0.99% and VYM 2.29%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPY or VYM better for dividend income?

It depends on your goals. VYM 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 VYM?

SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach, while VYM (Vanguard High Dividend Yield ETF) tracks FTSE High Dividend Yield Index. They are issued by State Street and Vanguard respectively.

Can I hold both SPY and VYM?

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 VYM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, VYM scores 95, so SPY's payout currently looks the more resilient of the two. VYM has also shown lower price volatility (beta 0.66 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 VYM?

SPY has an expense ratio of 0.0945% while VYM charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in SPY would generate roughly $24.75 cash per distribution ($99.00 annually). The same in VYM would produce about $57.25 cash per distribution ($229.00 annually).

Which has performed better historically, SPY or VYM?

SPY has outpaced VYM over the trailing twelve months, posting a 16.15% total return against 13.16%. The lead holds up over 10 years too: SPY has compounded at 15.32% a year, against 11.36% for VYM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SPY vs VYM — at a glance

Generated September 26, 2026.

Overview

SPY and VYM are both large-cap equity ETFs that track different indexes within the U.S. market, but they pursue opposing philosophies. SPY replicates the full S&P 500 through market-cap weighting, delivering broad exposure to 500 large-cap companies across all sectors. VYM narrows its scope to the FTSE High Dividend Yield Index—a curated subset emphasizing established dividend payers with value characteristics—aiming for higher income yield alongside growth.

How they differ

The most fundamental difference is philosophy: SPY chases total market performance with no income preference, while VYM tilts aggressively toward dividend yield and value. VYM's 2.29% distribution rate nearly doubles SPY's 0.99%, reflecting its screen for above-average dividend payers; SPY's yield reflects the blended payout of all 500 Index constituents. VYM's portfolio is significantly smaller—$80.2B in assets versus SPY's $817B—and carries a lower beta of 0.66 compared to SPY's 1.0, suggesting less sensitivity to broad equity market swings. On fees, VYM offers a meaningful advantage at 0.04%, versus SPY's 0.0945%, though both are among the cheapest equity ETFs available.

Who each is best for

SPY: Fits investors seeking the broadest, most diversified exposure to large-cap U.S. equities with minimal sector or style tilts—those building core equity allocations or replicating S&P 500 index performance.

VYM: Fits investors prioritizing current dividend income alongside capital appreciation, and those comfortable with a value-oriented tilt and reduced market sensitivity in exchange for higher payout yield.

Key risks to know

  • Dividend sustainability in downturns. VYM's higher yield depends on the screened companies maintaining above-average payouts during recessions or earnings pressure; dividend cuts or suspensions disproportionately affect funds concentrated in high-yielding stocks.
  • Value style concentration. VYM's deliberate tilt toward value characteristics and dividend payers means its returns may lag broad-market performance during extended growth-led rallies, when lower-yielding, higher-growth companies outperform.
  • Sector concentration risk. VYM's filter for dividend yield naturally overweights sectors known for consistent payouts (utilities, financials, real estate), reducing diversification compared to SPY's cap-weighted approach across all economic sectors. If you prioritize current income yield and can accept a value tilt and reduced market participation during growth rallies, VYM's 2.29% payout and lower expense ratio address that goal directly. Past performance does not predict future returns, and dividend-focused strategies have historically lagged in periods favoring growth stocks.

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

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These comparisons follow the Dividend Vision methodology.