VWO vs XLF
Vanguard FTSE Emerging Markets ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VWO or XLF?
Large Cap Blend against Large Cap Value.
VWO has a lower expense ratio. VWO led over 1Y and the full window, XLF over 3Y and 5Y.
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 | VWO | XLF |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $122.0B | $54.2B |
| Dividend Yield | 2.29% | 1.40% |
| Holdings | 6,334 | 80 |
| YTD Return | +9.25%Best | +4.43% |
| 1Y Return | +16.23%Best | +8.64% |
| 3Y Return (annualized) | +17.32% | +20.07%Best |
| 5Y Return (annualized) | +5.92% | +10.54%Best |
| Volatility (annualized) | 20.1%Best | 22.0% |
| Max Drawdown | -68.3%Best | -83.8% |
| $10,000 over 5 years | $13,332 | $16,504Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 10, 2026 (21.5 years).
VWO 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 21.5 years both funds cover.
VWO vs XLF Performance
Vanguard FTSE Emerging Markets ETF (VWO) 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 VWO returned +16.23% while XLF returned +8.64%. Year to date, VWO is up 9.25% versus a gain of 4.43% for XLF.
Over three years, VWO compounded at +17.32% per year against +20.07% for XLF; over five years the annualized figures are +5.92% and +10.54% respectively. Across the full 22-year window we track, VWO has the edge at +4.92% annualized vs +3.48%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 20.1% for VWO. 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 -68.3% for VWO 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VWO charges 0.06% per year while XLF charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VWO currently yields 2.29% against 1.40% for XLF.
Holdings Overlap
We hold position weights for 4,694 holdings in VWO and 77 in XLF, totalling 88.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 4,694 positions we hold weights for in VWO and 77 in XLF, against full books of 6,334 and 80.
You are not choosing between two funds in isolation.
Whichever of VWO 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, VWO or XLF?
VWO has an expense ratio of 0.06% while XLF charges 0.08%. VWO is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VWO or XLF?
Over the past year VWO returned +16.23% vs +8.64% for XLF, so VWO leads on 1-year performance. Over the longest common window we track (22 years), VWO annualized +4.92% vs +3.48% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VWO or XLF?
XLF has been the more volatile fund at 22.0% annualized versus 20.1% for VWO. Worst drawdown: VWO -68.3% vs XLF -83.8%.
Should I hold both VWO and XLF?
VWO and XLF have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VWO or XLF?
VWO yields 2.29% while XLF yields 1.40%, so VWO currently pays the higher dividend yield.
Is XLF better than VWO?
VWO has a lower expense ratio. VWO led over 1Y and the full window, XLF over 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.