VYM vs XLF
Vanguard High Dividend Yield ETF vs State Street Financial Select Sector SPDR ETF
Which is better, VYM or XLF?
Each has led over a different period.
VYM has a lower expense ratio. VYM led over 1Y, 5Y and the full window, XLF over 3Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 56.8%.
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 | XLF |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $54.2B |
| Dividend Yield | 2.22% | 1.40% |
| Holdings | 613 | 80 |
| YTD Return | +11.47%Best | +2.65% |
| 1Y Return | +15.94%Best | +4.78% |
| 3Y Return (annualized) | +18.03% | +20.15%Best |
| 5Y Return (annualized) | +12.35%Best | +10.71% |
| Volatility (annualized) | 14.6%Best | 22.8% |
| Max Drawdown | -58.8%Best | -83.8% |
| $10,000 over 5 years | $17,901Best | $16,632 |
| Top 10 Weight | 26.1%Best | 56.8% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 21, 2026 (19.8 years).
VYM vs XLF 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 XLF Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +15.94% while XLF returned +4.78%. Year to date, VYM is up 11.47% versus a gain of 2.65% for XLF.
Over three years, VYM compounded at +18.03% per year against +20.15% for XLF; over five years the annualized figures are +12.35% and +10.71% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs +2.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.8% compared with 14.6% 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 -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLF 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 1.40% for XLF.
Holdings Overlap
17.3% of VYM's money is in holdings XLF also owns. 53.6% of XLF's money is in holdings VYM also owns.
The two portfolios partly overlap.
50 positions in common, counted across the 557 positions we hold weights for in VYM and 77 in XLF, against full books of 613 and 80.
What only one of them owns
Our book lists 26 positions for XLF that do not appear in our book for VYM (46.1% of the fund), and 478 for VYM that do not appear in XLF (79.8%).
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.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLF | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 3.82% | 11.78% | 7.96% |
| GSGoldman Sachs Group Inc/The | 1.13% | 3.66% | 2.53% |
| WFCWells Fargo & Co. | 1.07% | 3.30% | 2.23% |
| MSMorgan Stanley | 0.96% | 3.13% | 2.17% |
| CCitigroup Inc. | 0.89% | 2.80% | 1.91% |
| BLKBlackrock Inc | 0.68% | 2.02% | 1.34% |
| COFCapital One Financial Corp. | 0.53% | 1.63% | 1.10% |
| PGRProgressive Corporation | 0.50% | 1.60% | 1.10% |
| CBChubb Ltd Common Stock Usd 24.15 | 0.50% | 1.51% | 1.01% |
| BKBank Of New York Mellon Corp | 0.44% | 1.36% | 0.92% |
53.6% of XLF 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XLF?
VYM has an expense ratio of 0.04% while XLF charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLF?
Over the past year VYM returned +15.94% vs +4.78% for XLF, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.82% vs +2.69% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLF?
XLF has been the more volatile fund at 22.8% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLF -83.8%.
Should I hold both VYM and XLF?
VYM and XLF have a monthly-return correlation of 0.87, 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 XLF?
53.6% of XLF's money is in holdings VYM also owns. 53.6% of XLF's is in holdings VYM also owns. They hold 50 positions in common, counted across the 557 positions we hold weights for in VYM and 77 in XLF.
Which pays a higher dividend, VYM or XLF?
VYM yields 2.22% while XLF yields 1.40%, so VYM currently pays the higher dividend yield.
Is XLF better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 5Y and the full window, XLF over 3Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 56.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.