VGK vs XLF
Vanguard FTSE Europe ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VGK or XLF?
Large Cap Blend against Large Cap Value.
VGK has a lower expense ratio. VGK led over 1Y and the full window, XLF over 3Y and 5Y. VGK is less concentrated, with 18.4% 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 | VGK | XLF |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $38.5B | $54.2B |
| Dividend Yield | 2.81% | 1.40% |
| Holdings | 1,240 | 80 |
| YTD Return | +7.47%Best | +2.65% |
| 1Y Return | +15.45%Best | +4.78% |
| 3Y Return (annualized) | +18.54% | +20.15%Best |
| 5Y Return (annualized) | +9.34% | +10.71%Best |
| Volatility (annualized) | 18.5%Best | 22.0% |
| Max Drawdown | -67.3%Best | -83.8% |
| $10,000 over 5 years | $15,628 | $16,632Best |
| Top 10 Weight | 18.4%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 21, 2026 (21.5 years).
VGK 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 21.5 years both funds cover.
VGK vs XLF Performance
Vanguard FTSE Europe ETF (VGK) 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 VGK returned +15.45% while XLF returned +4.78%. Year to date, VGK is up 7.47% versus a gain of 2.65% for XLF.
Over three years, VGK compounded at +18.54% per year against +20.15% for XLF; over five years the annualized figures are +9.34% and +10.71% respectively. Across the full 22-year window we track, VGK has the edge at +3.51% annualized vs +3.40%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 18.5% for VGK. 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 -67.3% for VGK 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
VGK charges 0.06% per year while XLF charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 1.40% for XLF.
Holdings Overlap
0.1% of VGK's money is in holdings XLF also owns. 0.4% of XLF's money is in holdings VGK also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 1,101 positions we hold weights for in VGK and 77 in XLF, against full books of 1,240 and 80.
What only one of them owns
Our book lists 75 positions for XLF that do not appear in our book for VGK (99.3% of the fund), and 12 for VGK that do not appear in XLF (3.1%).
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.
Top Shared Holdings
| Stock | Weight in VGK | Weight in XLF | Difference |
|---|---|---|---|
| HBANHuntington Bancshares Inc./Oh | 0.13% | 0.41% | 0.28% |
You are not choosing between two funds in isolation.
Whichever of VGK 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, VGK or XLF?
VGK has an expense ratio of 0.06% while XLF charges 0.08%. VGK is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VGK or XLF?
Over the past year VGK returned +15.45% vs +4.78% for XLF, so VGK leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.51% vs +3.40% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or XLF?
XLF has been the more volatile fund at 22.0% annualized versus 18.5% for VGK. Worst drawdown: VGK -67.3% vs XLF -83.8%.
Should I hold both VGK and XLF?
VGK 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, VGK or XLF?
VGK yields 2.81% while XLF yields 1.40%, so VGK currently pays the higher dividend yield.
Is XLF better than VGK?
VGK has a lower expense ratio. VGK led over 1Y and the full window, XLF over 3Y and 5Y. VGK is less concentrated, with 18.4% 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.