VYM vs XLSI

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXLSIWinner
Expense Ratio0.04%0.35%
AUM$79.0B$6M
Dividend Yield2.86%9.72%
Holdings5688
YTD Return+16.78%+7.18%
1Y Return+24.43%+4.38%
3Y Return (annualized)+18.60%-
5Y Return (annualized)+12.30%-
Volatility (annualized)14.6%10.4%
Max Drawdown-58.8%-7.9%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 10, 2006Jul 29, 2025

VYM vs XLSI Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Consumer Staples Select Sector SPDR Premium Income ETF (XLSI) is a ETF from State Street Investment Management. Over the past year VYM returned +24.43% while XLSI returned +4.38%. Year to date, VYM is up 16.78% versus a gain of 7.18% for XLSI.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 10.4% for XLSI. 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 -7.9% for XLSI. 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while XLSI 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 2.86% against 9.72% for XLSI.

Holdings Overlap

0.0%overlap

VYM and XLSI share 0 holdings out of 559 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 XLSI?

VYM has an expense ratio of 0.04% while XLSI 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 XLSI?

Over the past year VYM returned +24.43% vs +4.38% for XLSI, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.11% vs +6.35% for XLSI. Past performance does not guarantee future results.

Which is riskier, VYM or XLSI?

VYM has been the more volatile fund at 14.6% annualized versus 10.4% for XLSI. Worst drawdown: VYM -58.8% vs XLSI -7.9%.

Should I hold both VYM and XLSI?

VYM and XLSI have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XLSI?

VYM and XLSI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, VYM or XLSI?

VYM yields 2.86% while XLSI yields 9.72%, so XLSI currently pays the higher dividend yield.

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