VTI vs XLU
Vanguard Total Stock Market ETF vs State Street Utilities Select Sector SPDR ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | VTI | XLU | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $663.5B | $23.5B | |
| Dividend Yield | 1.07% | 2.64% | |
| Holdings | 3,543 | 34 | |
| YTD Return | +14.22% | +2.89% | |
| 1Y Return | +22.19% | +4.46% | |
| 3Y Return (annualized) | +21.27% | +14.44% | |
| 5Y Return (annualized) | +12.23% | +8.37% | |
| Volatility (annualized) | 15.3% | 15.1% | |
| Max Drawdown | -56.6% | -55.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Dec 16, 1998 |
VTI vs XLU Performance
Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and State Street Utilities Select Sector SPDR ETF (XLU) is a ETF from SPDR State Street Global Advisors. Over the past year VTI returned +22.19% while XLU returned +4.46%. Year to date, VTI is up 14.22% versus a gain of 2.89% for XLU.
Over three years, VTI compounded at +21.27% per year against +14.44% for XLU; over five years the annualized figures are +12.23% and +8.37% respectively. Across the full 25-year window we track, VTI has the edge at +8.14% annualized vs +4.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.1% for XLU. 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 -56.6% for VTI and -55.7% for XLU. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI charges 0.03% per year while XLU 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 1.07% against 2.64% for XLU.
Holdings Overlap
VTI and XLU share 28 holdings out of 2787 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XLU?
VTI has an expense ratio of 0.03% while XLU charges 0.08%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTI or XLU?
Over the past year VTI returned +22.19% vs +4.46% for XLU, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VTI annualized +8.14% vs +4.60% for XLU. Past performance does not guarantee future results.
Which is riskier, VTI or XLU?
VTI has been the more volatile fund at 15.3% annualized versus 15.1% for XLU. Worst drawdown: VTI -56.6% vs XLU -55.7%.
Should I hold both VTI and XLU?
VTI and XLU have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and XLU?
VTI and XLU share 28 common holdings with a 1.9% weight overlap. Combined, they hold 2787 unique securities.
Which pays a higher dividend, VTI or XLU?
VTI yields 1.07% while XLU yields 2.64%, so XLU currently pays the higher dividend yield.
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