VOO vs XLB
Vanguard S&P 500 ETF vs State Street Materials Select Sector SPDR ETF
Which is better, VOO or XLB?
VOO has been ahead.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 59.1%.
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 | VOO | XLB |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $8.6B |
| Dividend Yield | 1.04% | 1.61% |
| Holdings | 509 | 29 |
| YTD Return | +14.14%Best | +8.67% |
| 1Y Return | +17.31%Best | +11.49% |
| 3Y Return (annualized) | +23.16%Best | +10.19% |
| 5Y Return (annualized) | +13.85%Best | +6.65% |
| Volatility (annualized) | 14.1%Best | 18.5% |
| Max Drawdown | -34.3%Best | -40.2% |
| $10,000 over 5 years | $19,128Best | $13,798 |
| Top 10 Weight | 37.6%Best | 59.1% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 21, 2026 (16 years).
VOO vs XLB 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 16 years both funds cover.
VOO vs XLB Performance
Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and State Street Materials Select Sector SPDR ETF (XLB) is an ETF from SPDR State Street Global Advisors. Over the past year VOO returned +17.31% while XLB returned +11.49%. Year to date, VOO is up 14.14% versus a gain of 8.67% for XLB.
Over three years, VOO compounded at +23.16% per year against +10.19% for XLB; over five years the annualized figures are +13.85% and +6.65% respectively. Across the full 16-year window we track, VOO has the edge at +13.49% annualized vs +7.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLB has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -40.2% for XLB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while XLB 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, VOO currently yields 1.04% against 1.61% for XLB.
Holdings Overlap
1.6% of VOO's money is in holdings XLB also owns. 88.2% of XLB's money is in holdings VOO also owns.
Most of XLB is already inside VOO. Owning both mostly buys the same companies twice.
22 positions in common, counted across the 494 positions we hold weights for in VOO and 26 in XLB, against full books of 509 and 29.
What only one of them owns
Our book lists 2 positions for XLB that do not appear in our book for VOO (3.3% of the fund), and 466 for VOO that do not appear in XLB (97.7%).
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 VOO | Weight in XLB | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 0.34% | 13.23% | 12.89% |
| NEMNewmont Corp Common | 0.16% | 7.70% | 7.54% |
| CTVACorteva Inc Ctva | 0.08% | 5.15% | 5.07% |
| APDAir Products & Chemicals Inc. | 0.10% | 4.83% | 4.73% |
| ECLEcolab, Inc. | 0.11% | 4.77% | 4.66% |
| SHWSherwin Williams Co/the | 0.12% | 4.75% | 4.63% |
| NUENucor Corp. | 0.09% | 4.40% | 4.31% |
| VMCVulcan Materials Co. | 0.05% | 4.17% | 4.12% |
| CRH:LNCrh Plc - Common | 0.10% | 3.99% | 3.89% |
| MLMMartin Marietta Materials Inc. | 0.05% | 4.00% | 3.95% |
88.2% of XLB is already inside VOO.
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, VOO or XLB?
VOO has an expense ratio of 0.03% while XLB charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLB?
Over the past year VOO returned +17.31% vs +11.49% for XLB, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.49% vs +7.93% for XLB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLB?
XLB has been the more volatile fund at 18.5% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLB -40.2%.
Should I hold both VOO and XLB?
VOO and XLB have a monthly-return correlation of 0.82, 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 VOO and XLB?
88.2% of XLB's money is in holdings VOO also owns. 88.2% of XLB's is in holdings VOO also owns. They hold 22 positions in common, counted across the 494 positions we hold weights for in VOO and 26 in XLB.
Which pays a higher dividend, VOO or XLB?
VOO yields 1.04% while XLB yields 1.61%, so XLB currently pays the higher dividend yield.
Is XLB better than VOO?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 59.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.