VOO vs XLSR
Vanguard S&P 500 ETF vs State Street US Sector Rotation 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 | XLSR | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.70% | |
| AUM | $997.4B | $1.1B | |
| Dividend Yield | 1.08% | 0.46% | |
| Holdings | 509 | 21 | |
| YTD Return | +12.25% | +5.79% | |
| 1Y Return | +20.92% | +16.68% | |
| 3Y Return (annualized) | +21.79% | +16.43% | |
| 5Y Return (annualized) | +13.05% | +9.09% | |
| Volatility (annualized) | 14.1% | 16.2% | |
| Max Drawdown | -34.3% | -32.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Apr 2, 2019 |
VOO vs XLSR Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street US Sector Rotation ETF (XLSR) is a ETF from State Street Investment Management. Over the past year VOO returned +20.92% while XLSR returned +16.68%. Year to date, VOO is up 12.25% versus a gain of 5.79% for XLSR.
Over three years, VOO compounded at +21.79% per year against +16.43% for XLSR; over five years the annualized figures are +13.05% and +9.09% respectively. Across the full 7-year window we track, VOO has the edge at +13.45% annualized vs +12.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLSR has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -32.9% for XLSR. 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 0.98. 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 XLSR charges 0.70%. On a $10,000 position that is $3 vs $70 annually, a gap of $67 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 0.46% for XLSR.
Holdings Overlap
VOO and XLSR share 24 holdings out of 515 unique holdings combined, representing a 23.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XLSR?
VOO has an expense ratio of 0.03% while XLSR charges 0.70%. VOO is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, VOO or XLSR?
Over the past year VOO returned +20.92% vs +16.68% for XLSR, so VOO leads on 1-year performance. Over the longest common window we track (7 years), VOO annualized +13.45% vs +12.31% for XLSR. Past performance does not guarantee future results.
Which is riskier, VOO or XLSR?
XLSR has been the more volatile fund at 16.2% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLSR -32.9%.
Should I hold both VOO and XLSR?
VOO and XLSR have a monthly-return correlation of 0.98, 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 XLSR?
VOO and XLSR share 24 common holdings with a 23.6% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, VOO or XLSR?
VOO yields 1.08% while XLSR yields 0.46%, so VOO currently pays the higher dividend yield.
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