VEU vs XLF
Vanguard FTSE All World Ex US ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VEU or XLF?
Large Cap Blend against Large Cap Value.
VEU has a lower expense ratio. VEU led over 1Y and the full window, XLF over 3Y and 5Y.
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 | VEU | XLF |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $68.4B | $54.2B |
| Dividend Yield | 2.48% | 1.40% |
| Holdings | 3,928 | 80 |
| YTD Return | +13.57%Best | +4.43% |
| 1Y Return | +23.03%Best | +8.64% |
| 3Y Return (annualized) | +19.74% | +20.07%Best |
| 5Y Return (annualized) | +9.09% | +10.54%Best |
| Volatility (annualized) | 17.7%Best | 22.9% |
| Max Drawdown | -62.8%Best | -83.8% |
| $10,000 over 5 years | $15,450 | $16,504Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 2, 2007 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2007 to Sep 10, 2026 (19.5 years).
VEU 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 19.5 years both funds cover.
VEU vs XLF Performance
Vanguard FTSE All World Ex US ETF (VEU) 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 VEU returned +23.03% while XLF returned +8.64%. Year to date, VEU is up 13.57% versus a gain of 4.43% for XLF.
Over three years, VEU compounded at +19.74% per year against +20.07% for XLF; over five years the annualized figures are +9.09% and +10.54% respectively. Across the full 20-year window we track, VEU has the edge at +3.49% annualized vs +2.90%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.9% compared with 17.7% for VEU. 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 -62.8% for VEU 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEU charges 0.04% per year while XLF charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VEU currently yields 2.48% against 1.40% for XLF.
Holdings Overlap
At least 0.4% of XLF's money is in holdings VEU also owns.
Stated as a floor: for VEU, our book for it covers 94.0% 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 3,655 positions we hold weights for in VEU and 77 in XLF, against full books of 3,928 and 80.
Top Shared Holdings
| Stock | Weight in VEU | Weight in XLF | Difference |
|---|---|---|---|
| HBANHuntington Bancshares Inc./Oh | 0.05% | 0.44% | 0.39% |
You are not choosing between two funds in isolation.
Whichever of VEU 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, VEU or XLF?
VEU has an expense ratio of 0.04% while XLF charges 0.08%. VEU is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VEU or XLF?
Over the past year VEU returned +23.03% vs +8.64% for XLF, so VEU leads on 1-year performance. Over the longest common window we track (20 years), VEU annualized +3.49% vs +2.90% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEU or XLF?
XLF has been the more volatile fund at 22.9% annualized versus 17.7% for VEU. Worst drawdown: VEU -62.8% vs XLF -83.8%.
Should I hold both VEU and XLF?
VEU and XLF have a monthly-return correlation of 0.74, 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, VEU or XLF?
VEU yields 2.48% while XLF yields 1.40%, so VEU currently pays the higher dividend yield.
Is XLF better than VEU?
VEU has a lower expense ratio. VEU led over 1Y and the full window, XLF over 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.