VOO vs XLY
Vanguard S&P 500 ETF vs State Street Consumer Discretionary Select Sector SPDR ETF
Which is better, VOO or XLY?
Large Cap Blend against Large Cap Growth.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 68.5%.
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 | XLY |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $22.9B |
| Dividend Yield | 1.04% | 0.77% |
| Holdings | 509 | 50 |
| YTD Return | +13.31%Best | -6.13% |
| 1Y Return | +17.07%Best | -6.43% |
| 3Y Return (annualized) | +22.72%Best | +11.84% |
| 5Y Return (annualized) | +13.19%Best | +4.56% |
| Volatility (annualized) | 14.1%Best | 18.0% |
| Max Drawdown | -34.3%Best | -39.7% |
| $10,000 over 5 years | $18,580Best | $12,498 |
| Top 10 Weight | 37.6%Best | 68.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 23, 2026 (16 years).
VOO vs XLY 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 XLY Performance
Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is an ETF from SPDR State Street Global Advisors. Over the past year VOO returned +17.07% while XLY returned -6.43%. Year to date, VOO is up 13.31% versus a loss of 6.13% for XLY.
Over three years, VOO compounded at +22.72% per year against +11.84% for XLY; over five years the annualized figures are +13.19% and +4.56% respectively. Across the full 16-year window we track, VOO has the edge at +13.43% annualized vs +13.12%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -39.7% for XLY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.04% against 0.77% for XLY.
Holdings Overlap
9.3% of VOO's money is in holdings XLY also owns. 98.9% of XLY's money is in holdings VOO also owns.
Most of XLY is already inside VOO. Owning both mostly buys the same companies twice.
46 positions in common, counted across the 494 positions we hold weights for in VOO and 48 in XLY, against full books of 509 and 50.
What only one of them owns
Measured across the 494 and 48 positions we hold weights for.
VOO holds 441 positions XLY does not, 89.8% of the fund.
Largest: NVDA 7.55%, AAPL 7.05%, MSFT 5.36%, GOOGL 3.24%, AVGO 2.86%
Top Shared Holdings
| Stock | Weight in VOO | Weight in XLY | Difference |
|---|---|---|---|
| AMZNAmazon.Com Inc | 4.13% | 24.36% | 20.23% |
| TSLATesla Inc | 1.36% | 17.05% | 15.69% |
| HDHome Depot Inc/The | 0.51% | 5.42% | 4.91% |
| MCDMcdonald'S Corp | 0.30% | 4.11% | 3.81% |
| BKNGBooking Holdings, Inc. | 0.23% | 3.87% | 3.64% |
| TJXTjx Cos Inc | 0.27% | 3.54% | 3.27% |
| SBUXStarbucks Corp | 0.19% | 3.09% | 2.90% |
| LOWLowes Cos., Inc. | 0.18% | 2.86% | 2.68% |
| DASHDoordash Inc - A | 0.12% | 2.18% | 2.06% |
| GMGeneral Motors Co | 0.12% | 1.97% | 1.85% |
98.9% of XLY 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 XLY?
VOO has an expense ratio of 0.03% while XLY charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLY?
Over the past year VOO returned +17.07% vs -6.43% for XLY, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.43% vs +13.12% for XLY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLY?
XLY has been the more volatile fund at 18.0% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLY -39.7%.
Should I hold both VOO and XLY?
VOO and XLY have a monthly-return correlation of 0.89, 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 XLY?
98.9% of XLY's money is in holdings VOO also owns. 98.9% of XLY's is in holdings VOO also owns. They hold 46 positions in common, counted across the 494 positions we hold weights for in VOO and 48 in XLY.
Which pays a higher dividend, VOO or XLY?
VOO yields 1.04% while XLY yields 0.77%, so VOO currently pays the higher dividend yield.
Is XLY better than VOO?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 68.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.