VOO vs XLF
Vanguard S&P 500 ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VOO or XLF?
Large Cap Blend against Large Cap Value.
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 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 | VOO | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $54.2B |
| Dividend Yield | 1.04% | 1.40% |
| Holdings | 509 | 80 |
| YTD Return | +12.25%Best | +2.61% |
| 1Y Return | +17.03%Best | +4.93% |
| 3Y Return (annualized) | +21.25%Best | +18.84% |
| 5Y Return (annualized) | +13.08%Best | +10.15% |
| Volatility (annualized) | 14.1%Best | 19.1% |
| Max Drawdown | -34.3%Best | -43.3% |
| $10,000 over 5 years | $18,490Best | $16,215 |
| Top 10 Weight | 37.6%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 17, 2026 (16 years).
VOO 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 16 years both funds cover.
VOO vs XLF Performance
Vanguard S&P 500 ETF (VOO) 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 VOO returned +17.03% while XLF returned +4.93%. Year to date, VOO is up 12.25% versus a gain of 2.61% for XLF.
Over three years, VOO compounded at +21.25% per year against +18.84% for XLF; over five years the annualized figures are +13.08% and +10.15% respectively. Across the full 16-year window we track, VOO has the edge at +13.38% annualized vs +9.43%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -43.3% 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
VOO 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, VOO currently yields 1.04% against 1.40% for XLF.
Holdings Overlap
11.7% of VOO's money is in holdings XLF also owns. 94.2% of XLF's money is in holdings VOO also owns.
Most of XLF is already inside VOO. Owning both mostly buys the same companies twice.
73 positions in common, counted across the 494 positions we hold weights for in VOO and 77 in XLF, against full books of 509 and 80.
What only one of them owns
Our book lists 4 positions for XLF that do not appear in our book for VOO (5.9% of the fund), and 415 for VOO that do not appear in XLF (87.5%).
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 XLF | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.46% | 11.78% | 10.32% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 1.46% | 11.41% | 9.95% |
| VVisa Inc Class A | 0.93% | 7.66% | 6.73% |
| MAMastercard Inc | 0.72% | 5.81% | 5.09% |
| GSGoldman Sachs Group Inc/The | 0.45% | 3.66% | 3.21% |
| WFCWells Fargo & Co. | 0.41% | 3.30% | 2.89% |
| MSMorgan Stanley | 0.39% | 3.13% | 2.74% |
| CCitigroup Inc. | 0.34% | 2.80% | 2.46% |
| SCHWSchwab Strategic T | 0.27% | 2.19% | 1.92% |
| AXPAmerican Express Co. | 0.28% | 2.14% | 1.86% |
94.2% of XLF 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 XLF?
VOO has an expense ratio of 0.03% while XLF charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLF?
Over the past year VOO returned +17.03% vs +4.93% for XLF, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.38% vs +9.43% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLF?
XLF has been the more volatile fund at 19.1% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLF -43.3%.
Should I hold both VOO and XLF?
VOO 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 VOO and XLF?
94.2% of XLF's money is in holdings VOO also owns. 94.2% of XLF's is in holdings VOO also owns. They hold 73 positions in common, counted across the 494 positions we hold weights for in VOO and 77 in XLF.
Which pays a higher dividend, VOO or XLF?
VOO yields 1.04% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is XLF 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 56.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.