VYM vs XLEI
Vanguard High Dividend Yield ETF vs State Street Energy Select Sector SPDR Premium Income ETF
Quick Verdict
VYM has a lower expense ratio. XLEI delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | XLEI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $57M | |
| Dividend Yield | 2.24% | 18.44% | |
| Holdings | 616 | 6 | |
| YTD Return | +14.66% | +28.22% | |
| 1Y Return | +22.16% | +39.96% | |
| 3Y Return (annualized) | +18.72% | - | |
| 5Y Return (annualized) | +12.18% | - | |
| Volatility (annualized) | 14.6% | 14.2% | |
| Max Drawdown | -58.8% | -8.2% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 29, 2025 |
VYM vs XLEI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Energy Select Sector SPDR Premium Income ETF (XLEI) is a ETF from State Street Investment Management. Over the past year VYM returned +22.16% while XLEI returned +39.96%. Year to date, VYM is up 14.66% versus a gain of 28.22% for XLEI.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.2% for XLEI. 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 -8.2% for XLEI. 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XLEI 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 18.44% for XLEI.
Holdings Overlap
VYM and XLEI 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 XLEI?
VYM has an expense ratio of 0.04% while XLEI 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 XLEI?
Over the past year VYM returned +22.16% vs +39.96% for XLEI, so XLEI leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.01% vs +36.20% for XLEI. Past performance does not guarantee future results.
Which is riskier, VYM or XLEI?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for XLEI. Worst drawdown: VYM -58.8% vs XLEI -8.2%.
Should I hold both VYM and XLEI?
VYM and XLEI have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLEI?
VYM and XLEI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, VYM or XLEI?
VYM yields 2.24% while XLEI yields 18.44%, so XLEI currently pays the higher dividend yield.
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