VUG vs XLF
Vanguard Morningstar Growth ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VUG or XLF?
Large Cap Growth against Large Cap Value.
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 63.6%.
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 | VUG | XLF |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $219.5B | $54.2B |
| Dividend Yield | 0.38% | 1.40% |
| Holdings | 146 | 80 |
| YTD Return | +11.65%Best | +0.15% |
| 1Y Return | +13.57%Best | +2.69% |
| 3Y Return (annualized) | +26.10%Best | +19.09% |
| 5Y Return (annualized) | +12.87%Best | +9.27% |
| Volatility (annualized) | 16.5%Best | 21.5% |
| Max Drawdown | -51.4%Best | -83.8% |
| $10,000 over 5 years | $18,319Best | $15,578 |
| Top 10 Weight | 63.6% | 56.8%Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | 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).
VUG 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.
VUG vs XLF Performance
Vanguard Morningstar Growth ETF (VUG) 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 VUG returned +13.57% while XLF returned +2.69%. Year to date, VUG is up 11.65% versus a gain of 0.15% for XLF.
Over three years, VUG compounded at +26.10% per year against +19.09% for XLF; over five years the annualized figures are +12.87% and +9.27% respectively. Across the full 23-year window we track, VUG has the edge at +11.28% 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 16.5% for VUG. 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 -51.4% for VUG 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 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VUG 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, VUG currently yields 0.38% against 1.40% for XLF.
Holdings Overlap
4.1% of VUG's money is in holdings XLF also owns. 19.8% of XLF's money is in holdings VUG also owns.
XLF and VUG share little of their money.
11 positions in common, counted across the 147 positions we hold weights for in VUG and 77 in XLF, against full books of 146 and 80.
What only one of them owns
Our book lists 65 positions for XLF that do not appear in our book for VUG (79.9% of the fund), and 135 for VUG that do not appear in XLF (95.6%).
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 VUG | Weight in XLF | Difference |
|---|---|---|---|
| VVisa Inc Class A | 1.66% | 7.66% | 6.00% |
| MAMastercard Inc | 1.27% | 5.81% | 4.54% |
| BXBlackstone Group Inc. Class A | 0.15% | 1.26% | 1.11% |
| HOODRobinhood Markets Inc - A | 0.20% | 1.01% | 0.81% |
| MCOMoody'S Corp. | 0.22% | 0.92% | 0.70% |
| APOAthene (Ath) / Apollo Global Management (Apo) | 0.09% | 0.75% | 0.66% |
| SQBlock Inc | 0.14% | 0.52% | 0.38% |
| MSCIM S C I Inc. | 0.13% | 0.51% | 0.38% |
| COINCoinbase Globa-A | 0.10% | 0.49% | 0.39% |
| IBKRInteractive Brokers Group Inc | 0.07% | 0.50% | 0.43% |
You are not choosing between two funds in isolation.
Whichever of VUG and XLF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VUG or XLF?
VUG has an expense ratio of 0.03% while XLF charges 0.08%. VUG is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VUG or XLF?
Over the past year VUG returned +13.57% vs +2.69% for XLF, so VUG leads on 1-year performance. Over the longest common window we track (23 years), VUG annualized +11.28% vs +3.25% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VUG or XLF?
XLF has been the more volatile fund at 21.5% annualized versus 16.5% for VUG. Worst drawdown: VUG -51.4% vs XLF -83.8%.
Should I hold both VUG and XLF?
VUG and XLF have a monthly-return correlation of 0.69, 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 VUG and XLF?
19.8% of XLF's money is in holdings VUG also owns. 19.8% of XLF's is in holdings VUG also owns. They hold 11 positions in common, counted across the 147 positions we hold weights for in VUG and 77 in XLF.
Which pays a higher dividend, VUG or XLF?
VUG yields 0.38% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is XLF better than VUG?
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.