VYM vs XLUI
Vanguard High Dividend Yield ETF vs State Street Utilities Select Sector SPDR Premium Income ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.
Side-by-Side Comparison
| Metric | VYM | XLUI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $79.0B | $26M | |
| Dividend Yield | 2.86% | 12.29% | |
| Holdings | 568 | 14 | |
| YTD Return | +16.78% | +5.73% | |
| 1Y Return | +24.43% | +5.47% | |
| 3Y Return (annualized) | +18.60% | - | |
| 5Y Return (annualized) | +12.30% | - | |
| Volatility (annualized) | 14.6% | 9.4% | |
| Max Drawdown | -58.8% | -6.8% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 29, 2025 |
VYM vs XLUI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Utilities Select Sector SPDR Premium Income ETF (XLUI) is a ETF from State Street Investment Management. Over the past year VYM returned +24.43% while XLUI returned +5.47%. Year to date, VYM is up 16.78% versus a gain of 5.73% for XLUI.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.4% for XLUI. 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 -6.8% for XLUI. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XLUI 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 12.29% for XLUI.
Holdings Overlap
VYM and XLUI 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 XLUI?
VYM has an expense ratio of 0.04% while XLUI 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 XLUI?
Over the past year VYM returned +24.43% vs +5.47% for XLUI, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.11% vs +6.82% for XLUI. Past performance does not guarantee future results.
Which is riskier, VYM or XLUI?
VYM has been the more volatile fund at 14.6% annualized versus 9.4% for XLUI. Worst drawdown: VYM -58.8% vs XLUI -6.8%.
Should I hold both VYM and XLUI?
VYM and XLUI have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLUI?
VYM and XLUI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, VYM or XLUI?
VYM yields 2.86% while XLUI yields 12.29%, so XLUI currently pays the higher dividend yield.
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