VYM vs XLI
Vanguard High Dividend Yield ETF vs State Street Industrial Select Sector SPDR ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | VYM | XLI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.08% | |
| AUM | $81.6B | $32.4B | |
| Dividend Yield | 2.24% | 1.15% | |
| Holdings | 613 | 84 | |
| YTD Return | +14.87% | +9.95% | |
| 1Y Return | +21.39% | +16.24% | |
| 3Y Return (annualized) | +18.69% | +19.08% | |
| 5Y Return (annualized) | +11.98% | +12.11% | |
| Volatility (annualized) | 14.5% | 18.7% | |
| Max Drawdown | -58.8% | -63.3% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
VYM vs XLI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR ETF (XLI) is a ETF from SPDR State Street Global Advisors. Over the past year VYM returned +21.39% while XLI returned +16.24%. Year to date, VYM is up 14.87% versus a gain of 9.95% for XLI.
Over three years, VYM compounded at +18.69% per year against +19.08% for XLI; over five years the annualized figures are +11.98% and +12.11% respectively. Across the full 20-year window we track, XLI has the edge at +7.82% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLI has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.5% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 2.24% against 1.15% for XLI.
Holdings Overlap
VYM and XLI share 40 holdings out of 647 unique holdings combined, representing a 11.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VYM or XLI?
Over the past year VYM returned +21.39% vs +16.24% for XLI, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.00% vs +7.82% for XLI. Past performance does not guarantee future results.
Which is riskier, VYM or XLI?
XLI has been the more volatile fund at 18.7% annualized versus 14.5% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VYM and XLI?
VYM and XLI share 40 common holdings with a 11.1% weight overlap. Combined, they hold 647 unique securities.
Which pays a higher dividend, VYM or XLI?
VYM yields 2.24% while XLI yields 1.15%, so VYM currently pays the higher dividend yield.
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