VYM vs XLRE
Vanguard High Dividend Yield ETF vs State Street Real Estate Select Sector SPDR ETF
Which is better, VYM or XLRE?
Large Cap Value against Large Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 61.5%.
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 | XLRE |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $8.3B |
| Dividend Yield | 2.22% | 3.12% |
| Holdings | 613 | 34 |
| YTD Return | +10.24%Best | +4.52% |
| 1Y Return | +14.89%Best | +2.89% |
| 3Y Return (annualized) | +18.00%Best | +10.46% |
| 5Y Return (annualized) | +11.42%Best | +1.59% |
| Volatility (annualized) | 13.9%Best | 17.0% |
| Max Drawdown | -35.7%Best | -39.3% |
| $10,000 over 5 years | $17,172Best | $10,821 |
| Top 10 Weight | 26.1%Best | 61.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Nov 10, 2006 | Oct 7, 2015 |
Volatility and max drawdown are measured over the window both funds cover: Oct 8, 2015 to Sep 25, 2026 (11 years).
VYM vs XLRE 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 11 years both funds cover.
VYM vs XLRE Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Real Estate Select Sector SPDR ETF (XLRE) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +14.89% while XLRE returned +2.89%. Year to date, VYM is up 10.24% versus a gain of 4.52% for XLRE.
Over three years, VYM compounded at +18.00% per year against +10.46% for XLRE; over five years the annualized figures are +11.42% and +1.59% respectively. Across the full 11-year window we track, VYM has the edge at +9.83% annualized vs +4.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLRE has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 13.9% 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 -35.7% for VYM and -39.3% for XLRE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLRE 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 3.12% for XLRE.
Holdings Overlap
We hold position weights for 557 holdings in VYM and 31 in XLRE, totalling 99.2% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 557 positions we hold weights for in VYM and 31 in XLRE, against full books of 613 and 34.
What only one of them owns
Measured across the 557 and 31 positions we hold weights for.
VYM holds 528 positions XLRE does not, 97.1% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
You are not choosing between two funds in isolation.
Whichever of VYM and XLRE you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XLRE?
VYM has an expense ratio of 0.04% while XLRE charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLRE?
Over the past year VYM returned +14.89% vs +2.89% for XLRE, so VYM leads on 1-year performance. Over the longest common window we track (11 years), VYM annualized +9.83% vs +4.69% for XLRE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLRE?
XLRE has been the more volatile fund at 17.0% annualized versus 13.9% for VYM. Worst drawdown: VYM -35.7% vs XLRE -39.3%.
Should I hold both VYM and XLRE?
VYM and XLRE have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VYM or XLRE?
VYM yields 2.22% while XLRE yields 3.12%, so XLRE currently pays the higher dividend yield.
Is XLRE better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 61.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.