VYM vs XLRE
Vanguard High Dividend Yield ETF vs State Street Real Estate Select Sector SPDR 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 | XLRE | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.08% | |
| AUM | $81.6B | $8.7B | |
| Dividend Yield | 2.24% | 3.12% | |
| Holdings | 616 | 34 | |
| YTD Return | +15.42% | +14.00% | |
| 1Y Return | +22.36% | +11.31% | |
| 3Y Return (annualized) | +19.06% | +11.28% | |
| 5Y Return (annualized) | +12.20% | +2.89% | |
| Volatility (annualized) | 14.6% | 16.9% | |
| Max Drawdown | -58.8% | -39.3% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Oct 7, 2015 |
VYM vs XLRE Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Real Estate Select Sector SPDR ETF (XLRE) is a ETF from SPDR State Street Global Advisors. Over the past year VYM returned +22.36% while XLRE returned +11.31%. Year to date, VYM is up 15.42% versus a gain of 14.00% for XLRE.
Over three years, VYM compounded at +19.06% per year against +11.28% for XLRE; over five years the annualized figures are +12.20% and +2.89% respectively. Across the full 11-year window we track, VYM has the edge at +7.04% annualized vs +5.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLRE has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -39.3% for XLRE. 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 0.74. 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 2.24% against 3.12% for XLRE.
Holdings Overlap
VYM and XLRE share 0 holdings out of 635 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 XLRE?
VYM has an expense ratio of 0.04% while XLRE 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 XLRE?
Over the past year VYM returned +22.36% vs +11.31% for XLRE, so VYM leads on 1-year performance. Over the longest common window we track (11 years), VYM annualized +7.04% vs +5.57% for XLRE. Past performance does not guarantee future results.
Which is riskier, VYM or XLRE?
XLRE has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLRE -39.3%.
Should I hold both VYM and XLRE?
VYM and XLRE have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLRE?
VYM and XLRE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, VYM or XLRE?
VYM yields 2.24% while XLRE yields 3.12%, so XLRE currently pays the higher dividend yield.
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