VIG vs XLF
Vanguard Dividend Appreciation ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VIG or XLF?
Large Cap Blend against Large Cap Value.
VIG has a lower expense ratio. VIG led over 1Y, 5Y and the full window, XLF over 3Y. VIG is less concentrated, with 33.4% 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 | VIG | XLF |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $111.4B | $54.2B |
| Dividend Yield | 1.48% | 1.40% |
| Holdings | 335 | 80 |
| YTD Return | +8.93%Best | +2.65% |
| 1Y Return | +11.85%Best | +4.78% |
| 3Y Return (annualized) | +16.73% | +20.15%Best |
| 5Y Return (annualized) | +10.86%Best | +10.71% |
| Volatility (annualized) | 13.3%Best | 22.5% |
| Max Drawdown | -48.2%Best | -83.8% |
| $10,000 over 5 years | $16,745Best | $16,632 |
| Top 10 Weight | 33.4%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Apr 21, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 21, 2026 (20.4 years).
VIG 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 20.4 years both funds cover.
VIG vs XLF Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +11.85% while XLF returned +4.78%. Year to date, VIG is up 8.93% versus a gain of 2.65% for XLF.
Over three years, VIG compounded at +16.73% per year against +20.15% for XLF; over five years the annualized figures are +10.86% and +10.71% respectively. Across the full 20-year window we track, VIG has the edge at +8.48% 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 22.5% compared with 13.3% for VIG. 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 -48.2% for VIG 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIG 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, VIG currently yields 1.48% against 1.40% for XLF.
Holdings Overlap
18.8% of VIG's money is in holdings XLF also owns. 54.9% of XLF's money is in holdings VIG also owns.
The two portfolios partly overlap.
37 positions in common, counted across the 322 positions we hold weights for in VIG and 77 in XLF, against full books of 335 and 80.
What only one of them owns
Our book lists 39 positions for XLF that do not appear in our book for VIG (44.8% of the fund), and 262 for VIG that do not appear in XLF (80.5%).
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 VIG | Weight in XLF | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 4.07% | 11.78% | 7.71% |
| VVisa Inc Class A | 2.45% | 7.66% | 5.21% |
| MAMastercard Inc | 2.00% | 5.81% | 3.81% |
| GSGoldman Sachs Group Inc/The | 1.24% | 3.66% | 2.42% |
| MSMorgan Stanley | 1.09% | 3.13% | 2.04% |
| BLKBlackrock Inc | 0.68% | 2.02% | 1.34% |
| SPGIS&p Global Inc. | 0.54% | 1.65% | 1.11% |
| CBChubb Ltd Common Stock Usd 24.15 | 0.55% | 1.51% | 0.96% |
| BKBank Of New York Mellon Corp | 0.46% | 1.36% | 0.90% |
| CMECme Group, Cl A | 0.42% | 1.29% | 0.87% |
54.9% of XLF is already inside VIG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VIG or XLF?
VIG has an expense ratio of 0.04% while XLF charges 0.08%. VIG is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VIG or XLF?
Over the past year VIG returned +11.85% vs +4.78% for XLF, so VIG leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.48% vs +3.00% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or XLF?
XLF has been the more volatile fund at 22.5% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs XLF -83.8%.
Should I hold both VIG and XLF?
VIG and XLF have a monthly-return correlation of 0.81, 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 VIG and XLF?
54.9% of XLF's money is in holdings VIG also owns. 54.9% of XLF's is in holdings VIG also owns. They hold 37 positions in common, counted across the 322 positions we hold weights for in VIG and 77 in XLF.
Which pays a higher dividend, VIG or XLF?
VIG yields 1.48% while XLF yields 1.40%, so VIG currently pays the higher dividend yield.
Is XLF better than VIG?
VIG has a lower expense ratio. VIG led over 1Y, 5Y and the full window, XLF over 3Y. VIG is less concentrated, with 33.4% 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.