VYM vs XLSR
Vanguard High Dividend Yield ETF vs State Street US Sector Rotation 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 | XLSR | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.70% | |
| AUM | $81.6B | $1.1B | |
| Dividend Yield | 2.24% | 0.46% | |
| Holdings | 616 | 21 | |
| YTD Return | +15.60% | +6.73% | |
| 1Y Return | +23.48% | +17.40% | |
| 3Y Return (annualized) | +19.07% | +16.79% | |
| 5Y Return (annualized) | +12.50% | +9.50% | |
| Volatility (annualized) | 14.6% | 16.3% | |
| Max Drawdown | -58.8% | -32.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Apr 2, 2019 |
VYM vs XLSR Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street US Sector Rotation ETF (XLSR) is a ETF from State Street Investment Management. Over the past year VYM returned +23.48% while XLSR returned +17.40%. Year to date, VYM is up 15.60% versus a gain of 6.73% for XLSR.
Over three years, VYM compounded at +19.07% per year against +16.79% for XLSR; over five years the annualized figures are +12.50% and +9.50% respectively. Across the full 7-year window we track, XLSR has the edge at +12.44% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLSR has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -32.9% for XLSR. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLSR charges 0.70%. On a $10,000 position that is $4 vs $70 annually, a gap of $66 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 0.46% for XLSR.
Holdings Overlap
VYM and XLSR share 8 holdings out of 629 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XLSR?
VYM has an expense ratio of 0.04% while XLSR charges 0.70%. VYM is the cheaper option. On a $10,000 investment, that is $66 per year of difference.
Which performed better, VYM or XLSR?
Over the past year VYM returned +23.48% vs +17.40% for XLSR, so VYM leads on 1-year performance. Over the longest common window we track (7 years), VYM annualized +7.05% vs +12.44% for XLSR. Past performance does not guarantee future results.
Which is riskier, VYM or XLSR?
XLSR has been the more volatile fund at 16.3% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLSR -32.9%.
Should I hold both VYM and XLSR?
VYM and XLSR have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLSR?
VYM and XLSR share 8 common holdings with a 2.2% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, VYM or XLSR?
VYM yields 2.24% while XLSR yields 0.46%, so VYM currently pays the higher dividend yield.
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