VOO vs XLI
Vanguard S&P 500 ETF vs State Street Industrial Select Sector SPDR ETF
Quick Verdict
VOO has a lower expense ratio. XLI delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | XLI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $979.0B | $33.4B | |
| Dividend Yield | 1.09% | 1.11% | |
| Holdings | 509 | 82 | |
| YTD Return | +14.48% | +18.22% | |
| 1Y Return | +22.02% | +23.42% | |
| 3Y Return (annualized) | +21.80% | +21.23% | |
| 5Y Return (annualized) | +13.36% | +13.80% | |
| Volatility (annualized) | 14.2% | 18.7% | |
| Max Drawdown | -34.3% | -63.3% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
VOO vs XLI Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR ETF (XLI) is a ETF from SPDR State Street Global Advisors. Over the past year VOO returned +22.02% while XLI returned +23.42%. Year to date, VOO is up 14.48% versus a gain of 18.22% for XLI.
Over three years, VOO compounded at +21.80% per year against +21.23% for XLI; over five years the annualized figures are +13.36% and +13.80% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +8.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.2% 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 -63.3% for XLI. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while XLI 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 1.09% against 1.11% for XLI.
Holdings Overlap
VOO and XLI share 81 holdings out of 506 unique holdings combined, representing a 8.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XLI?
VOO has an expense ratio of 0.03% while XLI charges 0.08%. VOO is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VOO or XLI?
Over the past year VOO returned +22.02% vs +23.42% for XLI, so XLI leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.61% vs +8.12% for XLI. Past performance does not guarantee future results.
Which is riskier, VOO or XLI?
XLI has been the more volatile fund at 18.7% annualized versus 14.2% for VOO. Worst drawdown: VOO -34.3% vs XLI -63.3%.
Should I hold both VOO and XLI?
VOO and XLI have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XLI?
VOO and XLI share 81 common holdings with a 8.9% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, VOO or XLI?
VOO yields 1.09% while XLI yields 1.11%, so XLI currently pays the higher dividend yield.
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