VXUS vs XLY
Vanguard Total International Stock ETF vs State Street Consumer Discretionary Select Sector SPDR ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | VXUS | XLY | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $158.1B | $23.5B | |
| Dividend Yield | 2.59% | 0.78% | |
| Holdings | 8,747 | 50 | |
| YTD Return | +15.22% | +0.27% | |
| 1Y Return | +26.86% | +3.77% | |
| 3Y Return (annualized) | +20.34% | +13.00% | |
| 5Y Return (annualized) | +9.38% | +6.40% | |
| Volatility (annualized) | 15.1% | 19.2% | |
| Max Drawdown | -39.9% | -60.1% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Dec 16, 1998 |
VXUS vs XLY Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is a ETF from SPDR State Street Global Advisors. Over the past year VXUS returned +26.86% while XLY returned +3.77%. Year to date, VXUS is up 15.22% versus a gain of 0.27% for XLY.
Over three years, VXUS compounded at +20.34% per year against +13.00% for XLY; over five years the annualized figures are +9.38% and +6.40% respectively. Across the full 16-year window we track, XLY has the edge at +8.57% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.1% for VXUS. 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 -60.1% for XLY. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while XLY 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 2.59% against 0.78% for XLY.
Holdings Overlap
VXUS and XLY share 0 holdings out of 7917 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VXUS or XLY?
VXUS has an expense ratio of 0.05% while XLY charges 0.08%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VXUS or XLY?
Over the past year VXUS returned +26.86% vs +3.77% for XLY, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.89% vs +8.57% for XLY. Past performance does not guarantee future results.
Which is riskier, VXUS or XLY?
XLY has been the more volatile fund at 19.2% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XLY -60.1%.
Should I hold both VXUS and XLY?
VXUS and XLY have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XLY?
VXUS and XLY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7917 unique securities.
Which pays a higher dividend, VXUS or XLY?
VXUS yields 2.59% while XLY yields 0.78%, so VXUS currently pays the higher dividend yield.
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