VTI vs XLU

VTI vs XLU

Which is better, VTI or XLU?

Large Cap Blend against Large Cap Value.

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 58.6%.

Lower Fees: VTIHigher Returns: VTILess Concentrated: VTI

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

MetricVTIXLU
Expense Ratio0.03%Best0.08%
AUM$666.9B$22.1B
Dividend Yield1.03%2.70%
Holdings3,54334
YTD Return+13.14%Best-6.71%
1Y Return+16.63%Best-5.22%
3Y Return (annualized)+22.30%Best+10.96%
5Y Return (annualized)+12.01%Best+7.06%
Volatility (annualized)15.3%14.8%Best
Max Drawdown-56.6%-53.9%Best
$10,000 over 5 years$17,631Best$14,065
Top 10 Weight33.3%Best58.6%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionMay 24, 2001Dec 16, 1998

Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Sep 23, 2026 (25.3 years).

VTI vs XLU 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 25.3 years both funds cover.

VTI vs XLU Performance

Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and State Street Utilities Select Sector SPDR ETF (XLU) is an ETF from SPDR State Street Global Advisors. Over the past year VTI returned +16.63% while XLU returned -5.22%. Year to date, VTI is up 13.14% versus a loss of 6.71% for XLU.

Over three years, VTI compounded at +22.30% per year against +10.96% for XLU; over five years the annualized figures are +12.01% and +7.06% respectively. Across the full 25-year window we track, VTI has the edge at +8.06% annualized vs +4.21%.

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 14.8% 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 -53.9% for XLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.50. They move together some of the time, and apart the rest.

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 1.03% against 2.70% for XLU.

Holdings Overlap

VTI already in XLU1.9%
XLU already in VTI99.6%

1.9% of VTI's money is in holdings XLU also owns. 99.6% of XLU's money is in holdings VTI also owns.

Most of XLU is already inside VTI. Owning both mostly buys the same companies twice.

31 positions in common, counted across the 3,463 positions we hold weights for in VTI and 32 in XLU, against full books of 3,543 and 34.

What only one of them owns

Measured across the 3,463 and 32 positions we hold weights for.

VTI holds 1,119 positions XLU does not, 95.5% of the fund.

Largest: NVDA 6.40%, AAPL 6.29%, MSFT 4.79%, AMZN 3.65%, GOOGL 2.90%

Top Shared Holdings

StockWeight in VTIWeight in XLUDifference
NEENextera Energy Inc0.25%13.03%12.78%
SOSouthern Co.0.15%7.48%7.33%
DUKDuke Energy Corp0.14%7.07%6.93%
CEGConstellation Energy Corporation Com0.12%6.75%6.63%
AEPAmerican Electric Power Co Inc0.10%5.04%4.94%
DDominion Energy Inc.0.08%4.40%4.32%
SRESempra Common Stock0.08%4.15%4.07%
ETREntergy Corp.0.07%3.69%3.62%
XELXcel Energy Inc.0.07%3.57%3.50%
EXCExelon0.07%3.38%3.31%

99.6% of XLU 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.

VTIXLU

Free for up to 10 holdings. No account needed.

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, by $5 a year on a $10,000 investment.

Which performed better, VTI or XLU?

Over the past year VTI returned +16.63% vs -5.22% for XLU, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VTI annualized +8.06% vs +4.21% for XLU. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VTI or XLU?

VTI has been the more volatile fund at 15.3% annualized versus 14.8% for XLU. Worst drawdown: VTI -56.6% vs XLU -53.9%.

Should I hold both VTI and XLU?

VTI and XLU have a monthly-return correlation of 0.50, 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 XLU?

99.6% of XLU's money is in holdings VTI also owns. 99.6% of XLU's is in holdings VTI also owns. They hold 31 positions in common, counted across the 3,463 positions we hold weights for in VTI and 32 in XLU.

Which pays a higher dividend, VTI or XLU?

VTI yields 1.03% while XLU yields 2.70%, so XLU currently pays the higher dividend yield.

Is XLU 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 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.