VTI vs XOP
Vanguard Morningstar Total Stock Market ETF vs State Street SPDR S&P Oil & Gas Exploration & Production ETF
Quick Verdict
VTI has a lower expense ratio. XOP delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | XOP | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $666.9B | $3.7B | |
| Dividend Yield | 1.07% | 1.83% | |
| Holdings | 3,543 | 54 | |
| YTD Return | +12.65% | +46.65% | |
| 1Y Return | +21.39% | +54.55% | |
| 3Y Return (annualized) | +21.54% | +10.54% | |
| 5Y Return (annualized) | +12.11% | +23.48% | |
| Volatility (annualized) | 15.3% | 37.1% | |
| Max Drawdown | -56.6% | -91.0% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Jun 19, 2006 |
VTI vs XOP Performance
Vanguard Morningstar Total Stock Market ETF (VTI) 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 VTI returned +21.39% while XOP returned +54.55%. Year to date, VTI is up 12.65% versus a gain of 46.65% for XOP.
Over three years, VTI compounded at +21.54% per year against +10.54% for XOP; over five years the annualized figures are +12.11% and +23.48% respectively. Across the full 20-year window we track, VTI has the edge at +8.07% annualized vs +2.15%. 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 15.3% 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 -56.6% for VTI 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTI 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, VTI currently yields 1.07% against 1.83% for XOP.
Holdings Overlap
VTI and XOP share 38 holdings out of 2801 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XOP?
VTI has an expense ratio of 0.03% while XOP charges 0.35%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, VTI or XOP?
Over the past year VTI returned +21.39% vs +54.55% for XOP, so XOP leads on 1-year performance. Over the longest common window we track (20 years), VTI annualized +8.07% vs +2.15% for XOP. Past performance does not guarantee future results.
Which is riskier, VTI or XOP?
XOP has been the more volatile fund at 37.1% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs XOP -91.0%.
Should I hold both VTI and XOP?
VTI and XOP have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and XOP?
VTI and XOP share 38 common holdings with a 2.1% weight overlap. Combined, they hold 2801 unique securities.
Which pays a higher dividend, VTI or XOP?
VTI yields 1.07% while XOP yields 1.83%, so XOP currently pays the higher dividend yield.
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