VEA vs XLF
Vanguard FTSE Developed Markets ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VEA or XLF?
Large Cap Blend against Large Cap Value.
VEA has a lower expense ratio. VEA led over 1Y and 3Y, XLF over 5Y and the full window.
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 | VEA | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $230.3B | $54.2B |
| Dividend Yield | 2.49% | 1.40% |
| Holdings | 3,886 | 80 |
| YTD Return | +13.73%Best | +2.58% |
| 1Y Return | +21.98%Best | +4.80% |
| 3Y Return (annualized) | +19.84%Best | +18.87% |
| 5Y Return (annualized) | +10.22% | +10.67%Best |
| Volatility (annualized) | 17.7%Best | 23.0% |
| Max Drawdown | -62.9%Best | -82.8% |
| $10,000 over 5 years | $16,267 | $16,602Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 20, 2007 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 18, 2026 (19.1 years).
VEA 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 19.1 years both funds cover.
VEA vs XLF Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +21.98% while XLF returned +4.80%. Year to date, VEA is up 13.73% versus a gain of 2.58% for XLF.
Over three years, VEA compounded at +19.84% per year against +18.87% for XLF; over five years the annualized figures are +10.22% and +10.67% respectively. Across the full 19-year window we track, XLF has the edge at +3.16% annualized vs +3.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 23.0% compared with 17.7% for VEA. 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 -62.9% for VEA and -82.8% 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEA 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, VEA currently yields 2.49% against 1.40% for XLF.
Holdings Overlap
At least 2.0% of XLF's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
XLF and VEA share little of their money.
2 positions in common, counted across the 3,754 positions we hold weights for in VEA and 77 in XLF, against full books of 3,886 and 80.
You are not choosing between two funds in isolation.
Whichever of VEA 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, VEA or XLF?
VEA has an expense ratio of 0.03% while XLF charges 0.08%. VEA is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VEA or XLF?
Over the past year VEA returned +21.98% vs +4.80% for XLF, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.00% vs +3.16% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or XLF?
XLF has been the more volatile fund at 23.0% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs XLF -82.8%.
Should I hold both VEA and XLF?
VEA and XLF have a monthly-return correlation of 0.76, 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 VEA and XLF?
At least 2.0% of XLF's money is in holdings VEA also owns. Our book for VEA is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 3,754 positions we hold weights for in VEA and 77 in XLF.
Which pays a higher dividend, VEA or XLF?
VEA yields 2.49% while XLF yields 1.40%, so VEA currently pays the higher dividend yield.
Is XLF better than VEA?
VEA has a lower expense ratio. VEA led over 1Y and 3Y, XLF over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.