VYM vs XLU
Vanguard High Dividend Yield ETF vs State Street Utilities Select Sector SPDR ETF
Which is better, VYM or XLU?
VYM has been ahead.
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 58.6%.
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 | XLU |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $22.1B |
| Dividend Yield | 2.22% | 2.70% |
| Holdings | 613 | 34 |
| YTD Return | +10.23%Best | -6.71% |
| 1Y Return | +14.28%Best | -5.22% |
| 3Y Return (annualized) | +17.50%Best | +10.96% |
| 5Y Return (annualized) | +11.60%Best | +7.06% |
| Volatility (annualized) | 14.6%Best | 14.8% |
| Max Drawdown | -58.8% | -48.8%Best |
| $10,000 over 5 years | $17,311Best | $14,065 |
| Top 10 Weight | 26.1%Best | 58.6% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 23, 2026 (19.9 years).
VYM vs XLU 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 19.9 years both funds cover.
VYM vs XLU Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Utilities Select Sector SPDR ETF (XLU) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +14.28% while XLU returned -5.22%. Year to date, VYM is up 10.23% versus a loss of 6.71% for XLU.
Over three years, VYM compounded at +17.50% per year against +10.96% for XLU; over five years the annualized figures are +11.60% and +7.06% respectively. Across the full 20-year window we track, VYM has the edge at +6.76% annualized vs +4.94%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLU has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -48.8% for XLU. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while XLU 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 2.70% for XLU.
Holdings Overlap
4.9% of VYM's money is in holdings XLU also owns. 87.3% of XLU's money is in holdings VYM also owns.
Most of XLU is already inside VYM. Owning both mostly buys the same companies twice.
28 positions in common, counted across the 557 positions we hold weights for in VYM and 32 in XLU, against full books of 613 and 34.
What only one of them owns
Measured across the 557 and 32 positions we hold weights for.
VYM holds 500 positions XLU does not, 92.1% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLU | Difference |
|---|---|---|---|
| NEENextera Energy Inc | 0.74% | 13.03% | 12.29% |
| SOSouthern Co. | 0.43% | 7.48% | 7.05% |
| DUKDuke Energy Corp | 0.40% | 7.07% | 6.67% |
| AEPAmerican Electric Power Co Inc | 0.28% | 5.04% | 4.76% |
| DDominion Energy Inc. | 0.25% | 4.40% | 4.15% |
| SRESempra Common Stock | 0.24% | 4.15% | 3.91% |
| ETREntergy Corp. | 0.20% | 3.69% | 3.49% |
| XELXcel Energy Inc. | 0.20% | 3.57% | 3.37% |
| EXCExelon | 0.19% | 3.38% | 3.19% |
| EDConsolidated Edison Inc | 0.16% | 2.99% | 2.83% |
87.3% of XLU is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, VYM or XLU?
VYM has an expense ratio of 0.04% while XLU charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLU?
Over the past year VYM returned +14.28% vs -5.22% for XLU, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.76% vs +4.94% for XLU. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLU?
XLU has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLU -48.8%.
Should I hold both VYM and XLU?
VYM and XLU have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VYM and XLU?
87.3% of XLU's money is in holdings VYM also owns. 87.3% of XLU's is in holdings VYM also owns. They hold 28 positions in common, counted across the 557 positions we hold weights for in VYM and 32 in XLU.
Which pays a higher dividend, VYM or XLU?
VYM yields 2.22% while XLU yields 2.70%, so XLU currently pays the higher dividend yield.
Is XLU 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 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.