VOO vs XLII
Vanguard S&P 500 ETF vs State Street Industrial 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 | XLII | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $997.4B | $11M | |
| Dividend Yield | 1.08% | 12.08% | |
| Holdings | 509 | 5 | |
| YTD Return | +12.68% | +12.03% | |
| 1Y Return | +21.87% | +20.50% | |
| 3Y Return (annualized) | +22.06% | - | |
| 5Y Return (annualized) | +12.95% | - | |
| Volatility (annualized) | 14.1% | 11.5% | |
| Max Drawdown | -34.3% | -10.1% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jul 29, 2025 |
VOO vs XLII Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is a ETF from State Street Investment Management. Over the past year VOO returned +21.87% while XLII returned +20.50%. Year to date, VOO is up 12.68% versus a gain of 12.03% for XLII.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.5% for XLII. 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 -10.1% for XLII. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while XLII 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 12.08% for XLII.
Holdings Overlap
VOO and XLII share 0 holdings out of 507 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 XLII?
VOO has an expense ratio of 0.03% while XLII 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 XLII?
Over the past year VOO returned +21.87% vs +20.50% for XLII, so VOO leads on 1-year performance. Over the longest common window we track (1 years), VOO annualized +13.47% vs +19.24% for XLII. Past performance does not guarantee future results.
Which is riskier, VOO or XLII?
VOO has been the more volatile fund at 14.1% annualized versus 11.5% for XLII. Worst drawdown: VOO -34.3% vs XLII -10.1%.
Should I hold both VOO and XLII?
VOO and XLII have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XLII?
VOO and XLII share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, VOO or XLII?
VOO yields 1.08% while XLII yields 12.08%, so XLII currently pays the higher dividend yield.
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