VYM vs XLBI
Vanguard High Dividend Yield ETF vs State Street Materials Select Sector SPDR Premium Income ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | XLBI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $8M | |
| Dividend Yield | 2.24% | 14.94% | |
| Holdings | 616 | 5 | |
| YTD Return | +15.34% | +11.86% | |
| 1Y Return | +23.24% | +15.49% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 11.4% | |
| Max Drawdown | -58.8% | -10.6% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 29, 2025 |
VYM vs XLBI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI) is a ETF from State Street Investment Management. Over the past year VYM returned +23.24% while XLBI returned +15.49%. Year to date, VYM is up 15.34% versus a gain of 11.86% for XLBI.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.4% for XLBI. 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 -10.6% for XLBI. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLBI 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 2.24% against 14.94% for XLBI.
Holdings Overlap
VYM and XLBI share 0 holdings out of 604 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, VYM or XLBI?
VYM has an expense ratio of 0.04% while XLBI charges 0.35%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, VYM or XLBI?
Over the past year VYM returned +23.24% vs +15.49% for XLBI, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.04% vs +16.47% for XLBI. Past performance does not guarantee future results.
Which is riskier, VYM or XLBI?
VYM has been the more volatile fund at 14.6% annualized versus 11.4% for XLBI. Worst drawdown: VYM -58.8% vs XLBI -10.6%.
Should I hold both VYM and XLBI?
VYM and XLBI have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLBI?
VYM and XLBI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, VYM or XLBI?
VYM yields 2.24% while XLBI yields 14.94%, so XLBI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.