VYM vs XLI
Vanguard High Dividend Yield ETF vs State Street Industrial Select Sector SPDR ETF
Which is better, VYM or XLI?
Each has led over a different period.
VYM has a lower expense ratio. VYM led over 1Y, XLI over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 39.6%.
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 | XLI |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $31.7B |
| Dividend Yield | 2.22% | 1.18% |
| Holdings | 613 | 84 |
| YTD Return | +10.23%Best | +8.24% |
| 1Y Return | +14.28%Best | +12.12% |
| 3Y Return (annualized) | +17.50% | +20.06%Best |
| 5Y Return (annualized) | +11.60% | +12.69%Best |
| Volatility (annualized) | 14.6%Best | 19.2% |
| Max Drawdown | -58.8%Best | -63.3% |
| $10,000 over 5 years | $17,311 | $18,173Best |
| Top 10 Weight | 26.1%Best | 39.6% |
| 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 23, 2026 (19.9 years).
VYM vs XLI 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 19.9 years both funds cover.
VYM vs XLI Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Industrial Select Sector SPDR ETF (XLI) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +14.28% while XLI returned +12.12%. Year to date, VYM is up 10.23% versus a gain of 8.24% for XLI.
Over three years, VYM compounded at +17.50% per year against +20.06% for XLI; over five years the annualized figures are +11.60% and +12.69% respectively. Across the full 20-year window we track, XLI has the edge at +8.68% annualized vs +6.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -63.3% for XLI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VYM charges 0.04% per year while XLI 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 1.18% for XLI.
Holdings Overlap
10.6% of VYM's money is in holdings XLI also owns. 46.0% of XLI's money is in holdings VYM also owns.
The two portfolios partly overlap.
40 positions in common, counted across the 557 positions we hold weights for in VYM and 84 in XLI, against full books of 613 and 84.
What only one of them owns
Measured across the 557 and 84 positions we hold weights for.
VYM holds 488 positions XLI does not, 86.5% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLI | Difference |
|---|---|---|---|
| CATCaterpillar, Inc. | 1.50% | 6.61% | 5.11% |
| UNPUnion Pacific Corp | 0.70% | 3.18% | 2.48% |
| ETNEaton Corp Plc | 0.65% | 2.80% | 2.15% |
| ADPAutomatic Data Processing, Inc. | 0.43% | 2.09% | 1.66% |
| LMTLockheed Martin Corp | 0.48% | 2.04% | 1.56% |
| GDGeneral Dynamics Corp. | 0.40% | 1.73% | 1.33% |
| MMM3M Company | 0.37% | 1.64% | 1.27% |
| JCIJohnson Controls Intl Plc | 0.36% | 1.57% | 1.21% |
| EMREmerson Electric Co. | 0.34% | 1.52% | 1.18% |
| WMWaste Mgmt | 0.34% | 1.50% | 1.16% |
46.0% of XLI 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 XLI?
VYM has an expense ratio of 0.04% while XLI charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLI?
Over the past year VYM returned +14.28% vs +12.12% for XLI, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.76% vs +8.68% for XLI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLI?
XLI has been the more volatile fund at 19.2% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLI -63.3%.
Should I hold both VYM and XLI?
VYM and XLI have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VYM and XLI?
46.0% of XLI's money is in holdings VYM also owns. 46.0% of XLI's is in holdings VYM also owns. They hold 40 positions in common, counted across the 557 positions we hold weights for in VYM and 84 in XLI.
Which pays a higher dividend, VYM or XLI?
VYM yields 2.22% while XLI yields 1.18%, so VYM currently pays the higher dividend yield.
Is XLI better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, XLI over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 39.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.