VOO vs XRT
Vanguard S&P 500 ETF vs State Street SPDR S&P Retail 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 | XRT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $979.0B | $524M | |
| Dividend Yield | 1.09% | 0.77% | |
| Holdings | 509 | 77 | |
| YTD Return | +13.80% | +6.24% | |
| 1Y Return | +23.71% | +12.72% | |
| 3Y Return (annualized) | +21.50% | +12.19% | |
| 5Y Return (annualized) | +13.44% | +0.54% | |
| Volatility (annualized) | 14.1% | 24.6% | |
| Max Drawdown | -34.3% | -66.2% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jun 19, 2006 |
VOO vs XRT Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and State Street SPDR S&P Retail ETF (XRT) is a ETF from State Street Investment Management. Over the past year VOO returned +23.71% while XRT returned +12.72%. Year to date, VOO is up 13.80% versus a gain of 6.24% for XRT.
Over three years, VOO compounded at +21.50% per year against +12.19% for XRT; over five years the annualized figures are +13.44% and +0.54% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +8.61%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XRT has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.2% for XRT. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while XRT 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 0.77% for XRT.
Holdings Overlap
VOO and XRT share 3 holdings out of 511 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOO or XRT?
VOO has an expense ratio of 0.03% while XRT 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 XRT?
Over the past year VOO returned +23.71% vs +12.72% for XRT, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.58% vs +8.61% for XRT. Past performance does not guarantee future results.
Which is riskier, VOO or XRT?
XRT has been the more volatile fund at 24.6% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XRT -66.2%.
Should I hold both VOO and XRT?
VOO and XRT have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XRT?
VOO and XRT share 3 common holdings with a 1.5% weight overlap. Combined, they hold 511 unique securities.
Which pays a higher dividend, VOO or XRT?
VOO yields 1.09% while XRT yields 0.77%, so VOO currently pays the higher dividend yield.
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