VOE vs XLF
Vanguard Morningstar Mid-Cap Value ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VOE or XLF?
Mid Cap Value against Large Cap Value.
VOE has a lower expense ratio. VOE led over 1Y, 5Y and the full window, XLF over 3Y. VOE is less concentrated, with 13.1% 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 | VOE | XLF |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $23.9B | $54.2B |
| Dividend Yield | 1.80% | 1.40% |
| Holdings | 176 | 80 |
| YTD Return | +12.84%Best | +0.15% |
| 1Y Return | +17.54%Best | +2.69% |
| 3Y Return (annualized) | +17.01% | +19.09%Best |
| 5Y Return (annualized) | +9.39%Best | +9.27% |
| Volatility (annualized) | 17.6%Best | 22.7% |
| Max Drawdown | -63.4%Best | -83.8% |
| $10,000 over 5 years | $15,663Best | $15,578 |
| Top 10 Weight | 13.1%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Value |
| Inception | Aug 17, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Aug 24, 2006 to Sep 23, 2026 (20.1 years).
VOE 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 20.1 years both funds cover.
VOE vs XLF Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) 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 VOE returned +17.54% while XLF returned +2.69%. Year to date, VOE is up 12.84% versus a gain of 0.15% for XLF.
Over three years, VOE compounded at +17.01% per year against +19.09% for XLF; over five years the annualized figures are +9.39% and +9.27% respectively. Across the full 20-year window we track, VOE has the edge at +7.71% annualized vs +2.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.7% compared with 17.6% for VOE. 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 -63.4% for VOE 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOE charges 0.05% per year while XLF charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VOE currently yields 1.80% against 1.40% for XLF.
Holdings Overlap
19.7% of VOE's money is in holdings XLF also owns. 15.8% of XLF's money is in holdings VOE also owns.
VOE and XLF share little of their money.
33 positions in common, counted across the 171 positions we hold weights for in VOE and 77 in XLF, against full books of 176 and 80.
What only one of them owns
Our book lists 44 positions for XLF that do not appear in our book for VOE (84.3% of the fund), and 135 for VOE that do not appear in XLF (78.6%).
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 VOE | Weight in XLF | Difference |
|---|---|---|---|
| ALLAllstate Corp. | 1.13% | 0.82% | 0.31% |
| AJGArthur J Gallagher & Co. | 1.07% | 0.83% | 0.24% |
| AFLAflac Inc. | 0.97% | 0.66% | 0.31% |
| TRVThe Travelers Cos, Inc. | 0.66% | 0.96% | 0.30% |
| METMetlife Inc. | 0.88% | 0.63% | 0.25% |
| AONAon Public Limited Company Cl. A | 0.61% | 0.86% | 0.25% |
| STTState Street Corp. | 0.81% | 0.64% | 0.17% |
| FITBFifth Third Bancorp | 0.85% | 0.60% | 0.25% |
| AMPAmeriprise Financial Inc | 0.83% | 0.60% | 0.23% |
| NDAQNasdaq Inc. | 0.80% | 0.54% | 0.26% |
You are not choosing between two funds in isolation.
Whichever of VOE 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, VOE or XLF?
VOE has an expense ratio of 0.05% while XLF charges 0.08%. VOE is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VOE or XLF?
Over the past year VOE returned +17.54% vs +2.69% for XLF, so VOE leads on 1-year performance. Over the longest common window we track (20 years), VOE annualized +7.71% vs +2.96% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOE or XLF?
XLF has been the more volatile fund at 22.7% annualized versus 17.6% for VOE. Worst drawdown: VOE -63.4% vs XLF -83.8%.
Should I hold both VOE and XLF?
VOE and XLF have a monthly-return correlation of 0.86, 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 VOE and XLF?
19.7% of VOE's money is in holdings XLF also owns. 15.8% of XLF's is in holdings VOE also owns. They hold 33 positions in common, counted across the 171 positions we hold weights for in VOE and 77 in XLF.
Which pays a higher dividend, VOE or XLF?
VOE yields 1.80% while XLF yields 1.40%, so VOE currently pays the higher dividend yield.
Is XLF better than VOE?
VOE has a lower expense ratio. VOE led over 1Y, 5Y and the full window, XLF over 3Y. VOE is less concentrated, with 13.1% 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.