VYM vs XLC
Vanguard High Dividend Yield ETF vs State Street Communication Services Select Sector SPDR ETF
Which is better, VYM or XLC?
Large Cap Value against Large Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y and 5Y, XLC over 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 70.1%.
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 | XLC |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $22.4B |
| Dividend Yield | 2.22% | 1.28% |
| Holdings | 613 | 26 |
| YTD Return | +13.75%Best | -4.64% |
| 1Y Return | +19.42%Best | -2.81% |
| 3Y Return (annualized) | +18.22% | +19.07%Best |
| 5Y Return (annualized) | +12.17%Best | +6.59% |
| Volatility (annualized) | 15.3%Best | 18.9% |
| Max Drawdown | -35.7%Best | -46.6% |
| $10,000 over 5 years | $17,758Best | $13,759 |
| Top 10 Weight | 25.9%Best | 70.1% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Nov 10, 2006 | Jun 18, 2018 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2018 to Sep 9, 2026 (8.2 years).
VYM vs XLC 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 8.2 years both funds cover.
VYM vs XLC Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Communication Services Select Sector SPDR ETF (XLC) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +19.42% while XLC returned -2.81%. Year to date, VYM is up 13.75% versus a loss of 4.64% for XLC.
Over three years, VYM compounded at +18.22% per year against +19.07% for XLC; over five years the annualized figures are +12.17% and +6.59% respectively. Across the full 8-year window we track, XLC has the edge at +10.91% annualized vs +10.39%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 15.3% 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 -35.7% for VYM and -46.6% for XLC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLC charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 1.28% for XLC.
Holdings Overlap
2.2% of VYM's money is in holdings XLC also owns. 27.3% of XLC's money is in holdings VYM also owns.
XLC and VYM share little of their money.
7 positions in common, counted across the 603 positions we hold weights for in VYM and 24 in XLC, against full books of 613 and 26.
What only one of them owns
Measured across the 603 and 24 positions we hold weights for.
VYM holds 560 positions XLC does not, 95.1% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLC | Difference |
|---|---|---|---|
| VZVerizon Communications Inc Vz | 0.74% | 4.80% | 4.06% |
| TAt&t Inc Com | 0.58% | 4.90% | 4.32% |
| CMCSAComcast Corp-class A Cmcsa | 0.36% | 4.71% | 4.35% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.34% | 4.58% | 4.24% |
| OMCOmnicom Group Inc. | 0.09% | 4.49% | 4.40% |
| FOXAFox Corp. Class A | 0.04% | 2.36% | 2.32% |
| FOXFox Corp | 0.03% | 1.46% | 1.43% |
27.3% of XLC is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, VYM or XLC?
VYM has an expense ratio of 0.04% while XLC charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLC?
Over the past year VYM returned +19.42% vs -2.81% for XLC, so VYM leads on 1-year performance. Over the longest common window we track (8 years), VYM annualized +10.39% vs +10.91% for XLC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLC?
XLC has been the more volatile fund at 18.9% annualized versus 15.3% for VYM. Worst drawdown: VYM -35.7% vs XLC -46.6%.
Should I hold both VYM and XLC?
VYM and XLC have a monthly-return correlation of 0.74, 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 XLC?
27.3% of XLC's money is in holdings VYM also owns. 27.3% of XLC's is in holdings VYM also owns. They hold 7 positions in common, counted across the 603 positions we hold weights for in VYM and 24 in XLC.
Which pays a higher dividend, VYM or XLC?
VYM yields 2.22% while XLC yields 1.28%, so VYM currently pays the higher dividend yield.
Is XLC better than VYM?
VYM has a lower expense ratio. VYM led over 1Y and 5Y, XLC over 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 70.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.