VTI vs XLC
Vanguard Morningstar Total Stock Market ETF vs State Street Communication Services Select Sector SPDR ETF
Which is better, VTI or XLC?
Large Cap Blend against Large Cap Growth.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 70.5%.
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 | VTI | XLC |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $690.1B | $22.7B |
| Dividend Yield | 1.03% | 1.28% |
| Holdings | 3,524 | 54 |
| YTD Return | +13.35%Best | -4.77% |
| 1Y Return | +15.92%Best | -4.09% |
| 3Y Return (annualized) | +23.41%Best | +20.58% |
| 5Y Return (annualized) | +12.83%Best | +7.87% |
| Volatility (annualized) | 17.0%Best | 18.8% |
| Max Drawdown | -35.0%Best | -46.6% |
| $10,000 over 5 years | $18,286Best | $14,605 |
| Top 10 Weight | 33.3%Best | 70.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | May 24, 2001 | Jun 18, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2018 to Oct 2, 2026 (8.3 years).
VTI vs XLC 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 8.3 years both funds cover.
VTI vs XLC Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and State Street Communication Services Select Sector SPDR ETF (XLC) is an ETF from SPDR State Street Global Advisors. Over the past year VTI returned +15.92% while XLC returned -4.09%. Year to date, VTI is up 13.35% versus a loss of 4.77% for XLC.
Over three years, VTI compounded at +23.41% per year against +20.58% for XLC; over five years the annualized figures are +12.83% and +7.87% respectively. Across the full 8-year window we track, VTI has the edge at +13.47% annualized vs +10.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 17.0% for VTI. 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 -35.0% for VTI and -46.6% for XLC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while XLC 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, VTI currently yields 1.03% against 1.28% for XLC.
Holdings Overlap
8.8% of VTI's money is in holdings XLC also owns. 99.8% of XLC's money is in holdings VTI also owns.
Most of XLC is already inside VTI. Owning both mostly buys the same companies twice.
24 positions in common, counted across the 3,463 positions we hold weights for in VTI and 25 in XLC, against full books of 3,524 and 54.
What only one of them owns
Our book lists 1 positions for XLC that do not appear in our book for VTI (0.1% of the fund), and 1,128 for VTI that do not appear in XLC (88.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VTI | Weight in XLC | Difference |
|---|---|---|---|
| METAMeta Platforms Inc | 1.70% | 18.83% | 17.13% |
| GOOGLAlphabet Inc,class A | 2.90% | 10.19% | 7.29% |
| GOOGAlphabet Inc. C | 2.31% | 8.14% | 5.83% |
| TAT&T Inc | 0.22% | 5.24% | 5.02% |
| VZVerizon Communications Inc Vz | 0.24% | 5.04% | 4.80% |
| NFLXNetflix, Inc. | 0.42% | 4.60% | 4.18% |
| DISWalt Disney Co | 0.23% | 4.74% | 4.51% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.10% | 4.60% | 4.50% |
| CMCSAComcast Corp-class A Cmcsa | 0.12% | 4.57% | 4.45% |
| WBDWarner Bros. Discovery, Inc | 0.09% | 4.54% | 4.45% |
99.8% of XLC is already inside VTI.
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, VTI or XLC?
VTI has an expense ratio of 0.03% while XLC charges 0.08%. VTI is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTI or XLC?
Over the past year VTI returned +15.92% vs -4.09% for XLC, so VTI leads on 1-year performance. Over the longest common window we track (8 years), VTI annualized +13.47% vs +10.81% for XLC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or XLC?
XLC has been the more volatile fund at 18.8% annualized versus 17.0% for VTI. Worst drawdown: VTI -35.0% vs XLC -46.6%.
Should I hold both VTI and XLC?
VTI and XLC have a monthly-return correlation of 0.87, 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 VTI and XLC?
99.8% of XLC's money is in holdings VTI also owns. 99.8% of XLC's is in holdings VTI also owns. They hold 24 positions in common, counted across the 3,463 positions we hold weights for in VTI and 25 in XLC.
Which pays a higher dividend, VTI or XLC?
VTI yields 1.03% while XLC yields 1.28%, so XLC currently pays the higher dividend yield.
Is XLC better than VTI?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% of the fund in its ten largest positions against 70.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.