VYM vs XLFI
Vanguard High Dividend Yield ETF vs State Street Financial 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 | XLFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $8M | |
| Dividend Yield | 2.24% | 11.24% | |
| Holdings | 616 | 6 | |
| YTD Return | +14.66% | +4.42% | |
| 1Y Return | +22.16% | +9.44% | |
| 3Y Return (annualized) | +18.72% | - | |
| 5Y Return (annualized) | +12.18% | - | |
| Volatility (annualized) | 14.6% | 9.2% | |
| Max Drawdown | -58.8% | -11.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 29, 2025 |
VYM vs XLFI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR Premium Income ETF (XLFI) is a ETF from State Street Investment Management. Over the past year VYM returned +22.16% while XLFI returned +9.44%. Year to date, VYM is up 14.66% versus a gain of 4.42% for XLFI.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.2% for XLFI. 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 -11.9% for XLFI. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XLFI 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 11.24% for XLFI.
Holdings Overlap
VYM and XLFI 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 XLFI?
VYM has an expense ratio of 0.04% while XLFI 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 XLFI?
Over the past year VYM returned +22.16% vs +9.44% for XLFI, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.01% vs +9.79% for XLFI. Past performance does not guarantee future results.
Which is riskier, VYM or XLFI?
VYM has been the more volatile fund at 14.6% annualized versus 9.2% for XLFI. Worst drawdown: VYM -58.8% vs XLFI -11.9%.
Should I hold both VYM and XLFI?
VYM and XLFI have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLFI?
VYM and XLFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, VYM or XLFI?
VYM yields 2.24% while XLFI yields 11.24%, so XLFI currently pays the higher dividend yield.
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