VOO vs XHB
Vanguard S&P 500 ETF vs State Street SPDR S&P Homebuilders ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | XHB | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $997.4B | $1.5B | |
| Dividend Yield | 1.08% | 0.55% | |
| Holdings | 509 | 36 | |
| YTD Return | +12.25% | +1.40% | |
| 1Y Return | +20.92% | -5.32% | |
| 3Y Return (annualized) | +21.79% | +10.92% | |
| 5Y Return (annualized) | +13.05% | +7.57% | |
| Volatility (annualized) | 14.1% | 28.1% | |
| Max Drawdown | -34.3% | -82.3% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jan 31, 2006 |
VOO vs XHB Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street SPDR S&P Homebuilders ETF (XHB) is a ETF from State Street Investment Management. Over the past year VOO returned +20.92% while XHB returned -5.32%. Year to date, VOO is up 12.25% versus a gain of 1.40% for XHB.
Over three years, VOO compounded at +21.79% per year against +10.92% for XHB; over five years the annualized figures are +13.05% and +7.57% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHB has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -82.3% for XHB. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while XHB 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 0.55% for XHB.
Holdings Overlap
VOO and XHB share 14 holdings out of 525 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XHB?
VOO has an expense ratio of 0.03% while XHB 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 XHB?
Over the past year VOO returned +20.92% vs -5.32% for XHB, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.45% vs +4.45% for XHB. Past performance does not guarantee future results.
Which is riskier, VOO or XHB?
XHB has been the more volatile fund at 28.1% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XHB -82.3%.
Should I hold both VOO and XHB?
VOO and XHB have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XHB?
VOO and XHB share 14 common holdings with a 1.4% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, VOO or XHB?
VOO yields 1.08% while XHB yields 0.55%, so VOO currently pays the higher dividend yield.
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