VBR vs XLF
Vanguard Morningstar Small-Cap Value ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VBR or XLF?
Small Cap Value against Large Cap Value.
VBR has a lower expense ratio. VBR led over 1Y and the full window, XLF over 3Y and 5Y. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 56.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VBR | XLF |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $37.3B | $54.2B |
| Dividend Yield | 1.76% | 1.40% |
| Holdings | 847 | 80 |
| YTD Return | +12.49%Best | +0.63% |
| 1Y Return | +15.86%Best | +2.72% |
| 3Y Return (annualized) | +16.60% | +19.30%Best |
| 5Y Return (annualized) | +9.45% | +9.90%Best |
| Volatility (annualized) | 19.0%Best | 21.5% |
| Max Drawdown | -64.0%Best | -83.8% |
| $10,000 over 5 years | $15,706 | $16,032Best |
| Top 10 Weight | 5.9%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 22, 2026 (22.6 years).
VBR vs XLF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
VBR vs XLF Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year VBR returned +15.86% while XLF returned +2.72%. Year to date, VBR is up 12.49% versus a gain of 0.63% for XLF.
Over three years, VBR compounded at +16.60% per year against +19.30% for XLF; over five years the annualized figures are +9.45% and +9.90% respectively. Across the full 23-year window we track, VBR has the edge at +7.76% annualized vs +3.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 19.0% for VBR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -64.0% for VBR and -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBR charges 0.05% per year while XLF charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VBR currently yields 1.76% against 1.40% for XLF.
Holdings Overlap
1.3% of VBR's money is in holdings XLF also owns. 0.8% of XLF's money is in holdings VBR also owns.
VBR and XLF share little of their money.
The two holdings books were reported 63 days apart, VBR as of Jun 30, 2026 and XLF as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
5 positions in common, counted across the 836 positions we hold weights for in VBR and 77 in XLF, against full books of 847 and 80.
What only one of them owns
Our book lists 71 positions for XLF that do not appear in our book for VBR (98.8% of the fund), and 797 for VBR that do not appear in XLF (95.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VBR and XLF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBR or XLF?
VBR has an expense ratio of 0.05% while XLF charges 0.08%. VBR is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VBR or XLF?
Over the past year VBR returned +15.86% vs +2.72% for XLF, so VBR leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.76% vs +3.27% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or XLF?
XLF has been the more volatile fund at 21.5% annualized versus 19.0% for VBR. Worst drawdown: VBR -64.0% vs XLF -83.8%.
Should I hold both VBR and XLF?
VBR and XLF have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VBR and XLF?
1.3% of VBR's money is in holdings XLF also owns. 0.8% of XLF's is in holdings VBR also owns. They hold 5 positions in common, counted across the 836 positions we hold weights for in VBR and 77 in XLF.
Which pays a higher dividend, VBR or XLF?
VBR yields 1.76% while XLF yields 1.40%, so VBR currently pays the higher dividend yield.
Is XLF better than VBR?
VBR has a lower expense ratio. VBR led over 1Y and the full window, XLF over 3Y and 5Y. VBR is less concentrated, with 5.9% of the fund in its ten largest positions against 56.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.