VO vs XLF
Vanguard Morningstar Mid-Cap ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VO or XLF?
Mid Cap Blend against Large Cap Value.
VO has a lower expense ratio. VO led over 1Y and the full window, XLF over 3Y and 5Y. VO is less concentrated, with 9.1% 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 | VO | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $106.6B | $54.2B |
| Dividend Yield | 1.30% | 1.40% |
| Holdings | 289 | 80 |
| YTD Return | +10.88%Best | +2.65% |
| 1Y Return | +11.90%Best | +4.78% |
| 3Y Return (annualized) | +17.22% | +20.15%Best |
| 5Y Return (annualized) | +7.74% | +10.71%Best |
| Volatility (annualized) | 16.9%Best | 21.5% |
| Max Drawdown | -60.3%Best | -83.8% |
| $10,000 over 5 years | $14,517 | $16,632Best |
| Top 10 Weight | 9.1%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 21, 2026 (22.6 years).
VO 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 22.6 years both funds cover.
VO vs XLF Performance
Vanguard Morningstar Mid-Cap ETF (VO) 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 VO returned +11.90% while XLF returned +4.78%. Year to date, VO is up 10.88% versus a gain of 2.65% for XLF.
Over three years, VO compounded at +17.22% per year against +20.15% for XLF; over five years the annualized figures are +7.74% and +10.71% respectively. Across the full 23-year window we track, VO has the edge at +9.04% annualized vs +3.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 16.9% for VO. 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 -60.3% for VO 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VO 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, VO currently yields 1.30% against 1.40% for XLF.
Holdings Overlap
14.1% of VO's money is in holdings XLF also owns. 20.0% of XLF's money is in holdings VO also owns.
XLF and VO share little of their money.
41 positions in common, counted across the 283 positions we hold weights for in VO and 77 in XLF, against full books of 289 and 80.
What only one of them owns
Our book lists 36 positions for XLF that do not appear in our book for VO (80.0% of the fund), and 235 for VO that do not appear in XLF (83.3%).
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 VO | Weight in XLF | Difference |
|---|---|---|---|
| HOODRobinhood Markets Inc - A | 0.66% | 1.01% | 0.35% |
| ALLAllstate Corp. | 0.65% | 0.82% | 0.17% |
| AJGArthur J Gallagher & Co. | 0.62% | 0.83% | 0.21% |
| TRVThe Travelers Cos, Inc. | 0.38% | 0.96% | 0.58% |
| AFLAflac Inc. | 0.56% | 0.66% | 0.10% |
| AONAon Public Limited Company Cl. A | 0.35% | 0.86% | 0.51% |
| METMetlife Inc. | 0.51% | 0.63% | 0.12% |
| STTState Street Corp. | 0.47% | 0.64% | 0.17% |
| FITBFifth Third Bancorp | 0.49% | 0.60% | 0.11% |
| AMPAmeriprise Financial Inc | 0.48% | 0.60% | 0.12% |
20.0% of XLF is already inside VO.
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, VO or XLF?
VO has an expense ratio of 0.03% while XLF charges 0.08%. VO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VO or XLF?
Over the past year VO returned +11.90% vs +4.78% for XLF, so VO leads on 1-year performance. Over the longest common window we track (23 years), VO annualized +9.04% vs +3.37% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VO or XLF?
XLF has been the more volatile fund at 21.5% annualized versus 16.9% for VO. Worst drawdown: VO -60.3% vs XLF -83.8%.
Should I hold both VO and XLF?
VO and XLF have a monthly-return correlation of 0.80, 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 VO and XLF?
20.0% of XLF's money is in holdings VO also owns. 20.0% of XLF's is in holdings VO also owns. They hold 41 positions in common, counted across the 283 positions we hold weights for in VO and 77 in XLF.
Which pays a higher dividend, VO or XLF?
VO yields 1.30% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is XLF better than VO?
VO has a lower expense ratio. VO led over 1Y and the full window, XLF over 3Y and 5Y. VO is less concentrated, with 9.1% 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.