VV vs XLF
Vanguard Large-Cap ETF vs State Street Financial Select Sector SPDR ETF
Quick Verdict
VV has a lower expense ratio. VV delivered stronger 1-year returns. VV offers more diversification with 431 holdings.
Side-by-Side Comparison
| Metric | VV | XLF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $52.5B | $56.2B | |
| Dividend Yield | 1.25% | 1.51% | |
| Holdings | 446 | 80 | |
| YTD Return | +13.23% | +6.14% | |
| 1Y Return | +22.17% | +13.25% | |
| 3Y Return (annualized) | +21.70% | +20.31% | |
| 5Y Return (annualized) | +12.84% | +10.19% | |
| Volatility (annualized) | 14.8% | 21.4% | |
| Max Drawdown | -56.0% | -83.8% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 27, 2004 | Dec 16, 1998 |
VV vs XLF Performance
Vanguard Large-Cap ETF (VV) 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 VV returned +22.17% while XLF returned +13.25%. Year to date, VV is up 13.23% versus a gain of 6.14% for XLF.
Over three years, VV compounded at +21.70% per year against +20.31% for XLF; over five years the annualized figures are +12.84% and +10.19% respectively. Across the full 23-year window we track, VV has the edge at +9.51% 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 14.8% for VV. 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 -56.0% for VV 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VV 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, VV currently yields 1.25% against 1.51% for XLF.
Holdings Overlap
VV and XLF share 65 holdings out of 443 unique holdings combined, representing a 11.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VV or XLF?
VV has an expense ratio of 0.03% while XLF charges 0.08%. VV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VV or XLF?
Over the past year VV returned +22.17% vs +13.25% for XLF, so VV leads on 1-year performance. Over the longest common window we track (23 years), VV annualized +9.51% vs +3.70% for XLF. Past performance does not guarantee future results.
Which is riskier, VV or XLF?
XLF has been the more volatile fund at 21.4% annualized versus 14.8% for VV. Worst drawdown: VV -56.0% vs XLF -83.8%.
Should I hold both VV and XLF?
VV and XLF have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VV and XLF?
VV and XLF share 65 common holdings with a 11.2% weight overlap. Combined, they hold 443 unique securities.
Which pays a higher dividend, VV or XLF?
VV yields 1.25% while XLF yields 1.51%, so XLF currently pays the higher dividend yield.
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