VTV vs XLF
Vanguard Value ETF vs State Street Financial Select Sector SPDR ETF
Quick Verdict
VTV has a lower expense ratio. VTV delivered stronger 1-year returns. VTV offers more diversification with 308 holdings.
Side-by-Side Comparison
| Metric | VTV | XLF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $186.1B | $56.2B | |
| Dividend Yield | 2.29% | 1.51% | |
| Holdings | 311 | 80 | |
| YTD Return | +18.60% | +6.36% | |
| 1Y Return | +28.75% | +12.12% | |
| 3Y Return (annualized) | +18.63% | +20.37% | |
| 5Y Return (annualized) | +12.39% | +10.20% | |
| Volatility (annualized) | 14.5% | 21.4% | |
| Max Drawdown | -61.3% | -83.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
VTV vs XLF Performance
Vanguard Value ETF (VTV) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year VTV returned +28.75% while XLF returned +12.12%. Year to date, VTV is up 18.60% versus a gain of 6.36% for XLF.
Over three years, VTV compounded at +18.63% per year against +20.37% for XLF; over five years the annualized figures are +12.39% and +10.20% respectively. Across the full 23-year window we track, VTV has the edge at +7.62% annualized vs +3.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.5% for VTV. 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 -61.3% for VTV and -83.8% for XLF. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTV charges 0.03% per year while XLF 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, VTV currently yields 2.29% against 1.51% for XLF.
Holdings Overlap
VTV and XLF share 58 holdings out of 327 unique holdings combined, representing a 21.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTV or XLF?
VTV has an expense ratio of 0.03% while XLF charges 0.08%. VTV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTV or XLF?
Over the past year VTV returned +28.75% vs +12.12% for XLF, so VTV leads on 1-year performance. Over the longest common window we track (23 years), VTV annualized +7.62% vs +3.70% for XLF. Past performance does not guarantee future results.
Which is riskier, VTV or XLF?
XLF has been the more volatile fund at 21.4% annualized versus 14.5% for VTV. Worst drawdown: VTV -61.3% vs XLF -83.8%.
Should I hold both VTV and XLF?
VTV and XLF have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTV and XLF?
VTV and XLF share 58 common holdings with a 21.3% weight overlap. Combined, they hold 327 unique securities.
Which pays a higher dividend, VTV or XLF?
VTV yields 2.29% while XLF yields 1.51%, so VTV currently pays the higher dividend yield.
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