VTV vs XLF
Vanguard Morningstar Value ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VTV or XLF?
Each has led over a different period.
VTV has a lower expense ratio. VTV led over 1Y, 5Y and the full window, XLF over 3Y. VTV is less concentrated, with 22.5% of the fund in its ten largest positions against 56.8%.
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 | VTV | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $187.8B | $54.2B |
| Dividend Yield | 1.82% | 1.40% |
| Holdings | 311 | 80 |
| YTD Return | +15.62%Best | +0.15% |
| 1Y Return | +20.92%Best | +2.69% |
| 3Y Return (annualized) | +18.82% | +19.09%Best |
| 5Y Return (annualized) | +12.40%Best | +9.27% |
| Volatility (annualized) | 14.5%Best | 21.5% |
| Max Drawdown | -61.3%Best | -83.8% |
| $10,000 over 5 years | $17,940Best | $15,578 |
| Top 10 Weight | 22.5%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 23, 2026 (22.6 years).
VTV vs XLF 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 22.6 years both funds cover.
VTV vs XLF Performance
Vanguard Morningstar Value ETF (VTV) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year VTV returned +20.92% while XLF returned +2.69%. Year to date, VTV is up 15.62% versus a gain of 0.15% for XLF.
Over three years, VTV compounded at +18.82% per year against +19.09% for XLF; over five years the annualized figures are +12.40% and +9.27% respectively. Across the full 23-year window we track, VTV has the edge at +7.46% annualized vs +3.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.5% 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 what each fund did in the worst stretch of the window measured above.
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 1.82% against 1.40% for XLF.
Holdings Overlap
21.6% of VTV's money is in holdings XLF also owns. 75.4% of XLF's money is in holdings VTV also owns.
Most of XLF is already inside VTV. Owning both mostly buys the same companies twice.
56 positions in common, counted across the 299 positions we hold weights for in VTV and 77 in XLF, against full books of 311 and 80.
What only one of them owns
Our book lists 21 positions for XLF that do not appear in our book for VTV (24.6% of the fund), and 236 for VTV that do not appear in XLF (75.6%).
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 VTV | Weight in XLF | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 3.50% | 11.78% | 8.28% |
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 2.99% | 11.41% | 8.42% |
| GSGoldman Sachs Group Inc/The | 1.06% | 3.66% | 2.60% |
| WFCWells Fargo & Co. | 0.98% | 3.30% | 2.32% |
| MSMorgan Stanley | 0.92% | 3.13% | 2.21% |
| CCitigroup Inc. | 0.82% | 2.80% | 1.98% |
| SCHWSchwab Strategic T | 0.65% | 2.19% | 1.54% |
| AXPAmerican Express Co. | 0.68% | 2.14% | 1.46% |
| BLKBlackrock Inc | 0.57% | 2.02% | 1.45% |
| COFCapital One Financial Corp. | 0.48% | 1.63% | 1.15% |
75.4% of XLF is already inside VTV.
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, VTV or XLF?
VTV has an expense ratio of 0.03% while XLF charges 0.08%. VTV is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTV or XLF?
Over the past year VTV returned +20.92% vs +2.69% for XLF, so VTV leads on 1-year performance. Over the longest common window we track (23 years), VTV annualized +7.46% vs +3.25% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTV or XLF?
XLF has been the more volatile fund at 21.5% 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 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 VTV and XLF?
75.4% of XLF's money is in holdings VTV also owns. 75.4% of XLF's is in holdings VTV also owns. They hold 56 positions in common, counted across the 299 positions we hold weights for in VTV and 77 in XLF.
Which pays a higher dividend, VTV or XLF?
VTV yields 1.82% while XLF yields 1.40%, so VTV currently pays the higher dividend yield.
Is XLF better than VTV?
VTV has a lower expense ratio. VTV led over 1Y, 5Y and the full window, XLF over 3Y. VTV is less concentrated, with 22.5% of the fund in its ten largest positions against 56.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.