VOO vs XOP
Vanguard S&P 500 ETF vs State Street SPDR S&P Oil & Gas Exploration & Production ETF
Quick Verdict
VOO has a lower expense ratio. XOP delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | XOP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $979.0B | $3.5B | |
| Dividend Yield | 1.09% | 2.11% | |
| Holdings | 509 | 53 | |
| YTD Return | +14.48% | +40.18% | |
| 1Y Return | +22.02% | +46.75% | |
| 3Y Return (annualized) | +21.80% | +8.95% | |
| 5Y Return (annualized) | +13.36% | +20.13% | |
| Volatility (annualized) | 14.2% | 37.1% | |
| Max Drawdown | -34.3% | -91.0% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jun 19, 2006 |
VOO vs XOP Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a ETF from State Street Investment Management. Over the past year VOO returned +22.02% while XOP returned +46.75%. Year to date, VOO is up 14.48% versus a gain of 40.18% for XOP.
Over three years, VOO compounded at +21.80% per year against +8.95% for XOP; over five years the annualized figures are +13.36% and +20.13% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +1.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XOP has been the more volatile fund, with annualized monthly volatility of 37.1% 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 -91.0% for XOP. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while XOP charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 2.11% for XOP.
Holdings Overlap
VOO and XOP share 14 holdings out of 543 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XOP?
VOO has an expense ratio of 0.03% while XOP charges 0.35%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, VOO or XOP?
Over the past year VOO returned +22.02% vs +46.75% for XOP, so XOP leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.61% vs +1.92% for XOP. Past performance does not guarantee future results.
Which is riskier, VOO or XOP?
XOP has been the more volatile fund at 37.1% annualized versus 14.2% for VOO. Worst drawdown: VOO -34.3% vs XOP -91.0%.
Should I hold both VOO and XOP?
VOO and XOP have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XOP?
VOO and XOP share 14 common holdings with a 2.3% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, VOO or XOP?
VOO yields 1.09% while XOP yields 2.11%, so XOP currently pays the higher dividend yield.
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