SPY vs VWO: Head-to-Head Comparison
SPY vs VWO: SPDR S&P 500 ETF Trust has an expense ratio of 9.45% while Vanguard FTSE Emerging Markets ETF charges 0.08%. SPY holds 503 securities vs VWO's 5,830. 5-year returns: 15.70% vs 3.20%.
Last updated: April 2026
S&P vs Emerging
Quick Verdict
VWO edges out SPY with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | SPY | VWO |
|---|---|---|
| Expense Ratio | 9.45% | 0.08% |
| AUM | $600.0B | $75.0B |
| Dividend Yield | 1.20% | 3.20% |
| Holdings | 503 | 5,830 |
| 1-Year Return | 26.50% | 7.20% |
| 5-Year Return (Ann.) | 15.70% | 3.20% |
| 10-Year Return (Ann.) | 13.20% | 3.50% |
| Beta | 1.00 | 0.88 |
| P/E Ratio | 25.8 | 14.5 |
SPY 5-year annualized return is 15.70% compared to VWO's 3.20%. Over 10 years, SPY returned 13.20% vs VWO's 3.50%.
View data table
| Period | SPY Return | VWO Return |
|---|---|---|
| YTD | 3.10% | 1.50% |
| 1 Year | 26.50% | 7.20% |
| 3 Year | 11.10% | -0.80% |
| 5 Year | 15.70% | 3.20% |
| 10 Year | 13.20% | 3.50% |
Key Differences Between SPY and VWO
SPY (SPDR S&P 500 ETF Trust) is a u.s. large-cap blend fund managed by State Street Global Advisors. SPY was the very first ETF listed in the United States and remains the most heavily traded ETF in the world. Like VOO, it tracks the S&P 500 index, but SPY is especially popular among active traders due to its enormous daily trading volume. Beginners should know that SPY and VOO hold the same stocks, but SPY has a slightly higher expense ratio.
VWO (Vanguard FTSE Emerging Markets ETF) is a emerging markets fund managed by Vanguard. VWO gives investors access to stocks in emerging economies such as China, India, Brazil, Taiwan, and South Africa. These countries have younger populations and faster economic growth potential than developed nations. Beginners should know that emerging markets can be more volatile than developed markets, but VWO offers this higher-growth exposure at a very low cost of 0.08%.
The most notable differences are in fees (9.45% vs 0.08%), number of holdings (503 vs 5,830), and 5-year returns (15.70% vs 3.20%).
SPY vs VWO multi-factor comparison: SPY has a 9.45% expense ratio, 15.70% 5-year return, 503 holdings, 1.00 beta, and 1.20% yield. VWO has 0.08% expense ratio, 3.20% 5-year return, 5,830 holdings, 0.88 beta, and 3.20% yield.
View data table
| Metric | SPY | VWO |
|---|---|---|
| Expense Ratio | 9.45% | 0.08% |
| 5-Year Return | 15.70% | 3.20% |
| Holdings | 503 | 5,830 |
| Beta | 1.00 | 0.88 |
| Dividend Yield | 1.20% | 3.20% |
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Holdings Overlap Analysis
0%
Holdings Overlap
SPY and VWO share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SPY and VWO share 0% of their top holdings (low overlap). SPY has 503 total holdings and VWO has 5,830.
View data table
| Metric | SPY | VWO |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 503 | 5,830 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SPY
Fee cost: $39,143
VWO
Fee cost: $686
Over 20 years, the fee difference amounts to $38,457 on a $10,000 investment. VWO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SPY (9.45% fee) grows to $7,467 while VWO (0.08% fee) grows to $45,924. The fee difference costs $38,457.
View data table
| Year | SPY Value | VWO Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $9,296 | $14,639 |
| 10 | $8,641 | $21,430 |
| 15 | $8,032 | $31,371 |
| 20 | $7,467 | $45,924 |
Which One Should a Beginner Choose?
Choose SPY if: You want active traders who need high liquidity and tight spreads, options traders looking for the deepest options market available, institutional investors executing large block trades. It's managed by State Street Global Advisors with an expense ratio of 9.45%.
Choose VWO if: You want long-term investors who want exposure to the world's fastest-growing economies, those building a globally diversified portfolio who want to pair vwo with vea for full international coverage, contrarian investors who believe emerging markets are undervalued relative to u.s. stocks. It's managed by Vanguard with an expense ratio of 0.08%.
Can You Own Both SPY and VWO?
Absolutely! With only 0% overlap, SPY and VWO complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SPY or VWO?▾
VWO edges out SPY with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. SPY is best for investors who want active traders who need high liquidity and tight spreads, while VWO is better suited for long-term investors who want exposure to the world's fastest-growing economies.
What is the difference between SPY and VWO?▾
SPY (SPDR S&P 500 ETF Trust) tracks u.s. large-cap blend investments with 503 holdings and a 9.45% expense ratio. VWO (Vanguard FTSE Emerging Markets ETF) focuses on emerging markets with 5,830 holdings at 0.08%. Their top holdings overlap by 0%.
Can I own both SPY and VWO?▾
Yes! With only 0% holdings overlap, SPY and VWO complement each other well. Owning both gives you broader diversification.