VYM vs XBI
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Biotech ETF
Which is better, VYM or XBI?
Large Cap Value against Small Cap Blend.
VYM has a lower expense ratio. VYM led over 5Y, XBI over 1Y, 3Y and the full window. XBI is less concentrated, with 13.9% of the fund in its ten largest positions against 25.9%.
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 | VYM | XBI |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $81.6B | $11.5B |
| Dividend Yield | 2.22% | 0.35% |
| Holdings | 613 | 160 |
| YTD Return | +13.15% | +29.18%Best |
| 1Y Return | +17.82% | +67.77%Best |
| 3Y Return (annualized) | +17.99% | +26.05%Best |
| 5Y Return (annualized) | +12.16%Best | +3.68% |
| Volatility (annualized) | 14.5%Best | 27.2% |
| Max Drawdown | -58.8%Best | -63.9% |
| $10,000 over 5 years | $17,750Best | $11,980 |
| Top 10 Weight | 25.9% | 13.9%Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Blend |
| Inception | Nov 10, 2006 | Jan 31, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 10, 2026 (19.8 years).
VYM vs XBI 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 19.8 years both funds cover.
VYM vs XBI Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street SPDR S&P Biotech ETF (XBI) is an ETF from State Street Investment Management. Over the past year VYM returned +17.82% while XBI returned +67.77%. Year to date, VYM is up 13.15% versus a gain of 29.18% for XBI.
Over three years, VYM compounded at +17.99% per year against +26.05% for XBI; over five years the annualized figures are +12.16% and +3.68% respectively. Across the full 20-year window we track, XBI has the edge at +11.82% annualized vs +6.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 27.2% compared with 14.5% for VYM. 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 -58.8% for VYM and -63.9% for XBI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.47. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while XBI charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 0.35% for XBI.
Holdings Overlap
3.3% of VYM's money is in holdings XBI also owns. 3.3% of XBI's money is in holdings VYM also owns.
XBI and VYM share little of their money.
3 positions in common, counted across the 603 positions we hold weights for in VYM and 151 in XBI, against full books of 613 and 160.
What only one of them owns
Our book lists 141 positions for XBI that do not appear in our book for VYM (91.8% of the fund), and 565 for VYM that do not appear in XBI (94.2%).
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.
You are not choosing between two funds in isolation.
Whichever of VYM and XBI 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, VYM or XBI?
VYM has an expense ratio of 0.04% while XBI charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or XBI?
Over the past year VYM returned +17.82% vs +67.77% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.91% vs +11.82% for XBI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XBI?
XBI has been the more volatile fund at 27.2% annualized versus 14.5% for VYM. Worst drawdown: VYM -58.8% vs XBI -63.9%.
Should I hold both VYM and XBI?
VYM and XBI have a monthly-return correlation of 0.47, 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 VYM and XBI?
3.3% of XBI's money is in holdings VYM also owns. 3.3% of XBI's is in holdings VYM also owns. They hold 3 positions in common, counted across the 603 positions we hold weights for in VYM and 151 in XBI.
Which pays a higher dividend, VYM or XBI?
VYM yields 2.22% while XBI yields 0.35%, so VYM currently pays the higher dividend yield.
Is XBI better than VYM?
VYM has a lower expense ratio. VYM led over 5Y, XBI over 1Y, 3Y and the full window. XBI is less concentrated, with 13.9% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.