SPYM vs VGT

SPYMAState Street SPDR Portfolio S&P 500 ETF

VGTAVanguard Information Technology ETF

In short

SPYM State Street's budget-priced S&P 500 tracker: the same 500 large caps as its famous sibling, for 0.02% a year, the lowest fee in its S&P 500 peer group. Running since 2005 and now one of the category's giants.

VGT Vanguard's technology sleeve, indexed since 2004: roughly 300 US tech stocks running from megacap giants down to small caps, for 0.09% a year. Broad coverage of the sector rather than just its household names.

Stated mandate

SPYM The fund seeks to track the total return of the S&P 500 Index before fees and expenses, providing broad exposure to U.S. large-cap equities.

VGT The fund seeks to track an index measuring the investment return of information technology stocks. It uses an indexing approach for large-, mid-, and small-capitalization U.S. technology companies and normally invests at least 80% of assets in target-index stocks.

Why people hold it

• SPYM 0.02% a year, the cheapest fee in its S&P 500 cohort, against a 0.15% median for the group. Two dollars a year per $10,000 invested.
• Same S&P 500 index as State Street's flagship SPY (0.09%), for a fraction of the fee, and a basis point under VOO and IVV.
• Tracks the index tightly: gaps between fund and benchmark are among the smallest in its peer group, which is the whole job of an index wrapper.
• Live since 2005, now one of the largest and most heavily traded funds in the category. Distributions land quarterly.

• VGT Casts a wide net: about 300 US technology stocks across large, mid and small caps, not just the megacap names everyone already knows.vanguard.com
• Charges 0.09% a year, roughly a quarter of what the typical technology sector ETF asks.
• One of the largest and most actively traded sector funds around, and it has followed its index closely.
• Running since 2004 and among the strongest implementations in its technology peer group. Pays quarterly.

Worth knowing

• SPYM The S&P 500 is cap-weighted, so the biggest US companies drive most of the move. Equal-weight takes on the same index (RSP) spread that bet differently.
• About 500 US large caps and nothing else: no mid caps, no small caps, no international.
• The fee edge over VOO and IVV is one basis point. Same index, so trading costs and platform access matter as much as the sticker fee.

• VGT Weighted by market value, so the biggest platform companies drive most of the return. The small caps are along for the ride.
• One sector, one country: US technology only, which means bigger swings than a total market fund.
• If the last basis point matters, XLK and FTEC list at 0.08%.

Full SPYM profile⁠

Full VGT profile⁠