VOO vs XLY
Vanguard S&P 500 ETF vs State Street Consumer Discretionary 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 | XLY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $979.0B | $21.5B | |
| Dividend Yield | 1.09% | 0.77% | |
| Holdings | 509 | 51 | |
| YTD Return | +14.48% | +0.49% | |
| 1Y Return | +22.02% | +3.87% | |
| 3Y Return (annualized) | +21.80% | +12.57% | |
| 5Y Return (annualized) | +13.36% | +6.34% | |
| Volatility (annualized) | 14.2% | 19.2% | |
| Max Drawdown | -34.3% | -60.1% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
VOO vs XLY Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a ETF from SPDR State Street Global Advisors. Over the past year VOO returned +22.02% while XLY returned +3.87%. Year to date, VOO is up 14.48% versus a gain of 0.49% for XLY.
Over three years, VOO compounded at +21.80% per year against +12.57% for XLY; over five years the annualized figures are +13.36% and +6.34% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +8.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -60.1% for XLY. 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 XLY 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 0.77% for XLY.
Holdings Overlap
VOO and XLY share 47 holdings out of 506 unique holdings combined, representing a 9.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XLY?
VOO has an expense ratio of 0.03% while XLY 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 XLY?
Over the past year VOO returned +22.02% vs +3.87% for XLY, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.61% vs +8.58% for XLY. Past performance does not guarantee future results.
Which is riskier, VOO or XLY?
XLY has been the more volatile fund at 19.2% annualized versus 14.2% for VOO. Worst drawdown: VOO -34.3% vs XLY -60.1%.
Should I hold both VOO and XLY?
VOO and XLY 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 XLY?
VOO and XLY share 47 common holdings with a 9.3% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, VOO or XLY?
VOO yields 1.09% while XLY yields 0.77%, so VOO 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.