VXUS vs XLU

VXUS vs XLU

Which is better, VXUS or XLU?

Large Cap Blend against Large Cap Value.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y and 5Y, XLU over the full window.

Lower Fees: VXUSHigher Returns: split

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

MetricVXUSXLU
Expense Ratio0.05%Best0.08%
AUM$158.1B$22.1B
Dividend Yield2.51%2.70%
Holdings8,74734
YTD Return+12.21%Best-3.02%
1Y Return+19.22%Best+0.96%
3Y Return (annualized)+19.10%Best+11.72%
5Y Return (annualized)+8.63%Best+7.33%
Volatility (annualized)15.0%14.3%Best
Max Drawdown-39.9%-36.7%Best
$10,000 over 5 years$15,127Best$14,243
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionJan 26, 2011Dec 16, 1998

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 16, 2026 (15.6 years).

VXUS vs XLU 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 15.6 years both funds cover.

VXUS vs XLU Performance

Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US) and State Street Utilities Select Sector SPDR ETF (XLU) is an ETF from SPDR State Street Global Advisors. Over the past year VXUS returned +19.22% while XLU returned +0.96%. Year to date, VXUS is up 12.21% versus a loss of 3.02% for XLU.

Over three years, VXUS compounded at +19.10% per year against +11.72% for XLU; over five years the annualized figures are +8.63% and +7.33% respectively. Across the full 16-year window we track, XLU has the edge at +7.46% annualized vs +4.69%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.3% for XLU. 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 -39.9% for VXUS and -36.7% for XLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.37. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VXUS charges 0.05% per year while XLU charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VXUS currently yields 2.51% against 2.70% for XLU.

Holdings Overlap

XLU already in VXUS4.2%

At least 4.2% of XLU's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 88.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

XLU and VXUS share little of their money.

1 positions in common, counted across the 8,082 positions we hold weights for in VXUS and 32 in XLU, against full books of 8,747 and 34.

What only one of them owns

Measured across the 8,082 and 32 positions we hold weights for.

VXUS holds 35 positions XLU does not, 2.3% of the fund.

Largest: MKL 0.76%, SHEL 0.57%, VWO 0.11%, JD 0.09%, ALC 0.08%

Top Shared Holdings

StockWeight in VXUSWeight in XLUDifference
SRESempra Common Stock0.00%4.15%4.15%

You are not choosing between two funds in isolation.

Whichever of VXUS and XLU you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VXUSXLU

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VXUS or XLU?

VXUS has an expense ratio of 0.05% while XLU charges 0.08%. VXUS is the cheaper option, by $3 a year on a $10,000 investment.

Which performed better, VXUS or XLU?

Over the past year VXUS returned +19.22% vs +0.96% for XLU, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.69% vs +7.46% for XLU. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VXUS or XLU?

VXUS has been the more volatile fund at 15.0% annualized versus 14.3% for XLU. Worst drawdown: VXUS -39.9% vs XLU -36.7%.

Should I hold both VXUS and XLU?

VXUS and XLU have a monthly-return correlation of 0.37, 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 VXUS and XLU?

At least 4.2% of XLU's money is in holdings VXUS also owns. Our book for VXUS is partial, so the real figure is this or higher. They hold 1 positions in common, counted across the 8,082 positions we hold weights for in VXUS and 32 in XLU.

Which pays a higher dividend, VXUS or XLU?

VXUS yields 2.51% while XLU yields 2.70%, so XLU currently pays the higher dividend yield.

Is XLU better than VXUS?

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y and 5Y, XLU over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.