VCIT vs XLF

VCIT vs XLF

Which is better, VCIT or XLF?

Long Term Mid Quality against Large Cap Value.

VCIT has a lower expense ratio. XLF led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VCITHigher Returns: XLF

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

MetricVCITXLF
Expense Ratio0.03%Best0.08%
AUM$69.8B$54.2B
Dividend Yield4.89%1.40%
Holdings2,27180
YTD Return-1.72%+2.58%Best
1Y Return-0.83%+4.80%Best
3Y Return (annualized)+5.86%+18.87%Best
5Y Return (annualized)+0.46%+10.67%Best
Volatility (annualized)5.9%Best19.2%
Max Drawdown-20.7%Best-43.3%
$10,000 over 5 years$10,232$16,602Best
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryFixed IncomeEquity
StyleLong Term Mid QualityLarge Cap Value
InceptionNov 19, 2009Dec 16, 1998

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 18, 2026 (16.8 years).

VCIT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

Compare VCIT against instead:VCIT vs SPYVCIT vs QQQVCIT vs VOOVCIT vs VTIXLF against:XLF vs VXUS

VCIT vs XLF Performance

Vanguard Intermediate Term Corporate Bond ETF (VCIT) 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 VCIT returned -0.83% while XLF returned +4.80%. Year to date, VCIT is down 1.72% versus a gain of 2.58% for XLF.

Over three years, VCIT compounded at +5.86% per year against +18.87% for XLF; over five years the annualized figures are +0.46% and +10.67% respectively. Across the full 17-year window we track, XLF has the edge at +8.83% annualized vs +1.66%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XLF has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 5.9% for VCIT. 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 -20.7% for VCIT and -43.3% 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 0.29. They move largely independently of each other.

Fees and Cost Over Time

VCIT charges 0.03% per year while XLF charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VCIT currently yields 4.89% against 1.40% for XLF.

Holdings Overlap

XLF already in VCIT0.9%

At least 0.9% of XLF's money is in holdings VCIT also owns.

Stated as a floor: for VCIT, our book for it covers 61.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 1,364 positions we hold weights for in VCIT and 77 in XLF, against full books of 2,271 and 80.

Top Shared Holdings

StockWeight in VCITWeight in XLFDifference
AONAon Public Limited Company  Cl.  A0.04%0.86%0.82%

You are not choosing between two funds in isolation.

Whichever of VCIT and XLF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VCITXLF

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VCIT or XLF?

VCIT has an expense ratio of 0.03% while XLF charges 0.08%. VCIT is the cheaper option, by $5 a year on a $10,000 investment.

Which performed better, VCIT or XLF?

Over the past year VCIT returned -0.83% vs +4.80% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.66% vs +8.83% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VCIT or XLF?

XLF has been the more volatile fund at 19.2% annualized versus 5.9% for VCIT. Worst drawdown: VCIT -20.7% vs XLF -43.3%.

Should I hold both VCIT and XLF?

VCIT and XLF have a monthly-return correlation of 0.29, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, VCIT or XLF?

VCIT yields 4.89% while XLF yields 1.40%, so VCIT currently pays the higher dividend yield.

Is XLF better than VCIT?

VCIT has a lower expense ratio. XLF led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.