VOO vs XLG
Vanguard S&P 500 ETF vs Invesco S&P 500 Top 50 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 | XLG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.20% | |
| AUM | $997.4B | $11.0B | |
| Dividend Yield | 1.08% | 0.66% | |
| Holdings | 509 | 53 | |
| YTD Return | +12.73% | +5.51% | |
| 1Y Return | +20.59% | +14.26% | |
| 3Y Return (annualized) | +21.70% | +21.96% | |
| 5Y Return (annualized) | +12.87% | +13.52% | |
| Volatility (annualized) | 14.1% | 15.0% | |
| Max Drawdown | -34.3% | -53.8% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | May 4, 2005 |
VOO vs XLG Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Invesco S&P 500 Top 50 ETF (XLG) is a ETF from Invesco (US). Over the past year VOO returned +20.59% while XLG returned +14.26%. Year to date, VOO is up 12.73% versus a gain of 5.51% for XLG.
Over three years, VOO compounded at +21.70% per year against +21.96% for XLG; over five years the annualized figures are +12.87% and +13.52% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% annualized vs +9.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLG has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -53.8% for XLG. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VOO charges 0.03% per year while XLG charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 0.66% for XLG.
Holdings Overlap
VOO and XLG share 48 holdings out of 509 unique holdings combined, representing a 59.5% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VOO or XLG?
VOO has an expense ratio of 0.03% while XLG charges 0.20%. VOO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, VOO or XLG?
Over the past year VOO returned +20.59% vs +14.26% for XLG, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.47% vs +9.72% for XLG. Past performance does not guarantee future results.
Which is riskier, VOO or XLG?
XLG has been the more volatile fund at 15.0% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLG -53.8%.
Should I hold both VOO and XLG?
VOO and XLG have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VOO and XLG?
VOO and XLG share 48 common holdings with a 59.5% weight overlap. Combined, they hold 509 unique securities.
Which pays a higher dividend, VOO or XLG?
VOO yields 1.08% while XLG yields 0.66%, so VOO currently pays the higher dividend yield.
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