ETF Comparison: SPDR Portfolio S&P 500 Growth ETF (SPYG) Versus SPDR Portfolio S&P 500 Value ETF (SPYV)

SPYG vs. SPYV: Total Cost of Ownership

Both SPYG

and

SPYV

-0.26%

are part of the SPDR Portfolio lineup, which, as the name suggests, is designed to provide low-cost, core building blocks for investors. Both ETFs benefited from an expense ratio reduction last year, making them even more affordable.

On paper, it’s a tie—each carries an expense ratio of just 0.04%, meaning a $10,000 investment costs only $4 in annual fees.

Looking at implicit costs, both ETFs have minimal bid-ask spreads: 0.012% for SPYG and 0.021% for SPYV. While SPYG is slightly tighter, the difference is so small that it’s not a real concern for most investors.

Verdict: SPYG takes this by a very slim margin, but in the grand scheme of things, I’d consider this a tie.

SPYG vs. SPYV: Methodology & Holdings

Both SPYG and SPYV target different styles within the S&P 500 Index, but they use the same screening criteria—just applied to opposite ends of the spectrum.

Each ETF selects stocks based on:

• Book value to price ratio
• Earnings to price ratio
• Sales to price ratio

SPYG

looks for stocks trading higher on these metrics (growth-oriented), while SPYV

SPYV

-0.26%

seeks stocks trading lower (value-focused).

This methodology results in very different sector weightings. SPYG is heavily tilted toward information technology, while SPYV still has decent tech exposure but is more balanced across healthcare and financials as well.

The higher concentration in mega-cap tech stocks also makes SPYG much more top-heavy. Its top 15 holdings make up 52.43% of the portfolio, compared to just 34.67% for SPYV.

One notable aspect of these ETFs is their level of overlap, despite targeting opposite styles. SPYG and SPYV share 107 holdings, meaning 51.4% of SPYG’s 208 stocks are also found in SPYV, while 26.9% of SPYV’s 402 holdings appear in SPYG.

This happens because both indices use the same fundamental screening criteria, and some companies naturally straddle the line between growth and value. As a result, certain stocks meet the inclusion rules for both ETFs, leading to a higher-than-expected overlap between the two.

Verdict: SPYV

is closer to a large-cap core fund with a value tilt, while SPYG

SPYG

+0.07%

is more aggressively tilted toward growth. Overall, SPYV is more diversified, less top-heavy, and not as concentrated in a single sector.

SPYG vs. SPYV: Risk & Return

Unsurprisingly, the outperformance of mega-cap tech stocks has given the growth-focused SPYG the edge in the short term.

Over the past one- and three-year periods, SPYG has delivered higher annualized returns along with significantly greater net inflows, as investors have continued piling into high-growth names.

From a risk perspective, SPYG has also been far more volatile over the same time frame. It has seen higher drawdowns, greater volatility, and longer recovery periods, reflecting the inherent risk of chasing growth-heavy allocations.

However, over the long run, SPYV

has been the better performer, which is exactly what we should expect given the value factor premium. The Fama-French model suggests that, all else being equal, stocks with high book-to-market value (value stocks) should outperform growth stocks over time.

We see this in action looking at returns from October 2, 2000, to February 14, 2025. Through the dot-com crash and the 2008 financial crisis, value stocks outpaced growth until growth caught up during the COVID-era tech boom of the last few years.

Over this period, SPYG

delivered a CAGR of 6.83%, while SPYV returned 7.49%, also posting a better risk-adjusted return, with a Sharpe ratio of 0.39 vs. 0.34 for SPYG.

Verdict: I trust the value factor and believe that even at this point in the cycle, SPYV’s focus on value presents better long-term, risk-adjusted return potential.

This article is for informational purposes only and does not in any way constitute investment advice. The author may express their own opinions, which may not represent the opinions of ETF Central or its affiliated partners. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.