VOO vs XLFI
Vanguard S&P 500 ETF vs State Street Financial Select Sector SPDR Premium Income 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 | XLFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $997.4B | $8M | |
| Dividend Yield | 1.08% | 11.24% | |
| Holdings | 509 | 6 | |
| YTD Return | +12.25% | +4.42% | |
| 1Y Return | +20.92% | +9.44% | |
| 3Y Return (annualized) | +21.79% | - | |
| 5Y Return (annualized) | +13.05% | - | |
| Volatility (annualized) | 14.1% | 9.2% | |
| Max Drawdown | -34.3% | -11.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jul 29, 2025 |
VOO vs XLFI Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR Premium Income ETF (XLFI) is a ETF from State Street Investment Management. Over the past year VOO returned +20.92% while XLFI returned +9.44%. Year to date, VOO is up 12.25% versus a gain of 4.42% for XLFI.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 9.2% for XLFI. 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 -11.9% for XLFI. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while XLFI 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 11.24% for XLFI.
Holdings Overlap
VOO and XLFI share 0 holdings out of 506 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XLFI?
VOO has an expense ratio of 0.03% while XLFI 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 XLFI?
Over the past year VOO returned +20.92% vs +9.44% for XLFI, so VOO leads on 1-year performance. Over the longest common window we track (1 years), VOO annualized +13.45% vs +9.79% for XLFI. Past performance does not guarantee future results.
Which is riskier, VOO or XLFI?
VOO has been the more volatile fund at 14.1% annualized versus 9.2% for XLFI. Worst drawdown: VOO -34.3% vs XLFI -11.9%.
Should I hold both VOO and XLFI?
VOO and XLFI have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XLFI?
VOO and XLFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, VOO or XLFI?
VOO yields 1.08% while XLFI yields 11.24%, so XLFI currently pays the higher dividend yield.
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