VOO vs XLP
Vanguard S&P 500 ETF vs State Street Consumer Staples Select Sector SPDR ETF
Which is better, VOO or XLP?
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 36.4% of the fund in its ten largest positions against 62.1%.
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 | XLP |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $14.6B |
| Dividend Yield | 1.08% | 2.58% |
| Holdings | 509 | 38 |
| YTD Return | +13.37%Best | +10.24% |
| 1Y Return | +20.08%Best | +7.80% |
| 3Y Return (annualized) | +21.29%Best | +8.67% |
| 5Y Return (annualized) | +12.89%Best | +6.05% |
| Volatility (annualized) | 14.1% | 12.1%Best |
| Max Drawdown | -34.3% | -24.9%Best |
| $10,000 over 5 years | $18,335Best | $13,414 |
| Top 10 Weight | 36.4%Best | 62.1% |
| 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 4, 2026 (16 years).
VOO vs XLP 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 XLP Performance
Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF from SPDR State Street Global Advisors. Over the past year VOO returned +20.08% while XLP returned +7.80%. Year to date, VOO is up 13.37% versus a gain of 10.24% for XLP.
Over three years, VOO compounded at +21.29% per year against +8.67% for XLP; over five years the annualized figures are +12.89% and +6.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +8.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 12.1% for XLP. 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 -24.9% for XLP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VOO charges 0.03% per year while XLP 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 1.08% against 2.58% for XLP.
Holdings Overlap
4.6% of VOO's money is in holdings XLP also owns. 99.5% of XLP's money is in holdings VOO also owns.
Most of XLP is already inside VOO. Owning both mostly buys the same companies twice.
33 positions in common, counted across the 505 positions we hold weights for in VOO and 35 in XLP, against full books of 509 and 38.
What only one of them owns
Measured across the 505 and 35 positions we hold weights for.
VOO holds 464 positions XLP does not, 94.9% of the fund.
Largest: NVDA 7.51%, AAPL 6.59%, MSFT 4.30%, AMZN 3.62%, GOOGL 3.25%
Top Shared Holdings
| Stock | Weight in VOO | Weight in XLP | Difference |
|---|---|---|---|
| WMTWalmart, Inc. | 0.77% | 10.45% | 9.68% |
| COSTCostco Wholesale Corp. | 0.64% | 8.96% | 8.32% |
| PGProcter & Gamble Company | 0.53% | 7.23% | 6.70% |
| KOCoca-Cola Co. (The) | 0.49% | 7.18% | 6.69% |
| PMPhilip Morris International Inc. | 0.44% | 6.29% | 5.85% |
| CLColgate-Palmolive Co | 0.11% | 4.68% | 4.57% |
| PEPPepsico Inc. | 0.29% | 4.35% | 4.06% |
| MDLZMondelez International Inc Com A Npv | 0.12% | 4.40% | 4.28% |
| MOAltria Group Inc | 0.19% | 4.22% | 4.03% |
| TGTTarget Corp-1477 | 0.09% | 4.32% | 4.23% |
99.5% of XLP 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 XLP?
VOO has an expense ratio of 0.03% while XLP charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLP?
Over the past year VOO returned +20.08% vs +7.80% for XLP, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.48% vs +8.28% for XLP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLP?
VOO has been the more volatile fund at 14.1% annualized versus 12.1% for XLP. Worst drawdown: VOO -34.3% vs XLP -24.9%.
Should I hold both VOO and XLP?
VOO and XLP have a monthly-return correlation of 0.65, 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 XLP?
99.5% of XLP's money is in holdings VOO also owns. 99.5% of XLP's is in holdings VOO also owns. They hold 33 positions in common, counted across the 505 positions we hold weights for in VOO and 35 in XLP.
Which pays a higher dividend, VOO or XLP?
VOO yields 1.08% while XLP yields 2.58%, so XLP currently pays the higher dividend yield.
Is XLP better than VOO?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 62.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.