VOO vs XLP
Vanguard S&P 500 ETF vs State Street Consumer Staples Select Sector SPDR ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VOO | XLP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $979.0B | $14.5B | |
| Dividend Yield | 1.09% | 2.64% | |
| Holdings | 509 | 39 | |
| YTD Return | +13.44% | +10.38% | |
| 1Y Return | +22.62% | +5.62% | |
| 3Y Return (annualized) | +21.47% | +7.29% | |
| 5Y Return (annualized) | +13.27% | +6.08% | |
| Volatility (annualized) | 14.1% | 12.5% | |
| Max Drawdown | -34.3% | -37.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
VOO vs XLP Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street Consumer Staples Select Sector SPDR ETF (XLP) is a ETF from SPDR State Street Global Advisors. Over the past year VOO returned +22.62% while XLP returned +5.62%. Year to date, VOO is up 13.44% versus a gain of 10.38% for XLP.
Over three years, VOO compounded at +21.47% per year against +7.29% for XLP; over five years the annualized figures are +13.27% and +6.08% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +4.84%. 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 12.5% 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 -37.8% for XLP. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.09% against 2.64% for XLP.
Holdings Overlap
VOO and XLP share 33 holdings out of 507 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VOO or XLP?
Over the past year VOO returned +22.62% vs +5.62% for XLP, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.55% vs +4.84% for XLP. Past performance does not guarantee future results.
Which is riskier, VOO or XLP?
VOO has been the more volatile fund at 14.1% annualized versus 12.5% for XLP. Worst drawdown: VOO -34.3% vs XLP -37.8%.
Should I hold both VOO and XLP?
VOO and XLP have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XLP?
VOO and XLP share 33 common holdings with a 4.6% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, VOO or XLP?
VOO yields 1.09% while XLP yields 2.64%, so XLP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.