VOO vs XBI
Vanguard S&P 500 ETF vs State Street SPDR S&P Biotech ETF
Quick Verdict
VOO has a lower expense ratio. XBI delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | XBI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $997.4B | $10.6B | |
| Dividend Yield | 1.08% | 0.39% | |
| Holdings | 509 | 157 | |
| YTD Return | +12.25% | +34.58% | |
| 1Y Return | +20.92% | +83.96% | |
| 3Y Return (annualized) | +21.79% | +28.02% | |
| 5Y Return (annualized) | +13.05% | +6.13% | |
| Volatility (annualized) | 14.1% | 27.0% | |
| Max Drawdown | -34.3% | -63.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jan 31, 2006 |
VOO vs XBI Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street SPDR S&P Biotech ETF (XBI) is a ETF from State Street Investment Management. Over the past year VOO returned +20.92% while XBI returned +83.96%. Year to date, VOO is up 12.25% versus a gain of 34.58% for XBI.
Over three years, VOO compounded at +21.79% per year against +28.02% for XBI; over five years the annualized figures are +13.05% and +6.13% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +11.88%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 27.0% compared with 14.1% for VOO. 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 -34.3% for VOO and -63.9% for XBI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while XBI charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 0.39% for XBI.
Holdings Overlap
VOO and XBI share 8 holdings out of 650 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XBI?
VOO has an expense ratio of 0.03% while XBI charges 0.35%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, VOO or XBI?
Over the past year VOO returned +20.92% vs +83.96% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.45% vs +11.88% for XBI. Past performance does not guarantee future results.
Which is riskier, VOO or XBI?
XBI has been the more volatile fund at 27.0% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XBI -63.9%.
Should I hold both VOO and XBI?
VOO and XBI have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XBI?
VOO and XBI share 8 common holdings with a 1.6% weight overlap. Combined, they hold 650 unique securities.
Which pays a higher dividend, VOO or XBI?
VOO yields 1.08% while XBI yields 0.39%, so VOO currently pays the higher dividend yield.
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