SPYG Has Beaten SPYV by 390% Over a Decade and the Reason Matters More Than You Think

"S&P's style methodology sorts the parent index using three value signals (book-to-price, earnings-to-price, sales-to-price) and three growth signals (sales growth, earnings change, momentum). Stocks scoring strongly on both sides get split proportionally across the two indexes, which is why SPYV's largest holding is Apple at 6.9%, followed by Amazon at 3.54%. That single mechanic matters: a reader who assumes SPYV is a pure deep-value fund is wrong. It owns the cheaper sleeve of mega-caps alongside traditional value names."

"The implicit bets diverge at the sector layer. SPYV leans on Financials at 15.6%, Health Care at 12.32%, Industrials at 11.36%, and Energy at 8.32%, a profile that needs a steeper yield curve, sticky inflation, or cyclical earnings expansion to outperform. SPYG concentrates in technology and communication services and needs the opposite: disinflation, falling real rates, and durable AI capex."

"Stretch the window and the growth bet has paid better. Over five years, SPYG returned 111.91% against SPYV's 68.06%. Over ten years, the spread widens to 429.13% versus 212.84%. The trailing 12 months tell the same story, with SPYG up 35.38% against SPYV's 20.22%."

"Cost is a non-factor. Both clip four basis points. What the investor actually chooses between is income and cyclicality on one side versus capital appreciation and concentration on the other."

SPDR Portfolio S&P 500 Value ETF and SPDR Portfolio S&P 500 Growth ETF provide a factor split of the S&P 500 using value and growth signals. The methodology scores stocks with value measures such as book-to-price, earnings-to-price, and sales-to-price, and growth measures such as sales growth, earnings change, and momentum. Stocks scoring strongly on both sides are allocated proportionally, so the value fund is not purely deep value and still holds large growth-leaning mega-cap names. Sector tilts differ: the value fund emphasizes Financials, Health Care, Industrials, and Energy, while the growth fund concentrates in Technology and Communication Services. Growth has led year to date and over five, ten, and trailing twelve-month periods, with similar fees, making the choice primarily about income and cyclicality versus capital appreciation and concentration.

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