VYM vs XLY
Vanguard High Dividend Yield ETF vs State Street Consumer Discretionary Select Sector SPDR ETF
Which is better, VYM or XLY?
Large Cap Value against Large Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLY over the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 68.6%.
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 | XLY |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $83.1B | $21.5B |
| Dividend Yield | 2.22% | 0.77% |
| Holdings | 608 | 100 |
| YTD Return | +9.22%Best | -7.49% |
| 1Y Return | +12.81%Best | -9.01% |
| 3Y Return (annualized) | +18.21%Best | +11.47% |
| 5Y Return (annualized) | +11.39%Best | +4.65% |
| Volatility (annualized) | 14.6%Best | 19.4% |
| Max Drawdown | -58.8%Best | -60.1% |
| $10,000 over 5 years | $17,149Best | $12,552 |
| Top 10 Weight | 26.1%Best | 68.6% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 1, 2026 (19.9 years).
VYM vs XLY 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 XLY Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Consumer Discretionary Select Sector SPDR ETF (XLY) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +12.81% while XLY returned -9.01%. Year to date, VYM is up 9.22% versus a loss of 7.49% for XLY.
Over three years, VYM compounded at +18.21% per year against +11.47% for XLY; over five years the annualized figures are +11.39% and +4.65% respectively. Across the full 20-year window we track, XLY has the edge at +9.41% annualized vs +6.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLY has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -60.1% for XLY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 XLY 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 0.77% for XLY.
Holdings Overlap
5.4% of VYM's money is in holdings XLY also owns. 28.6% of XLY's money is in holdings VYM also owns.
XLY and VYM share little of their money.
22 positions in common, counted across the 557 positions we hold weights for in VYM and 48 in XLY, against full books of 608 and 100.
What only one of them owns
Our book lists 26 positions for XLY that do not appear in our book for VYM (71.3% of the fund), and 506 for VYM that do not appear in XLY (91.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLY | Difference |
|---|---|---|---|
| HDHome Depot Inc/The | 1.34% | 5.31% | 3.97% |
| MCDMcdonald'S Corp | 0.78% | 4.04% | 3.26% |
| SBUXStarbucks Corp | 0.49% | 2.91% | 2.42% |
| LOWLowes Cos., Inc. | 0.47% | 2.85% | 2.38% |
| RCLRoyal Caribbean Cruises | 0.32% | 1.68% | 1.36% |
| FFord Motor Co | 0.23% | 1.42% | 1.19% |
| EBAYEbay Inc. | 0.21% | 1.24% | 1.03% |
| GRMNGarminltd. | 0.20% | 1.20% | 1.00% |
| NKENike Inc | 0.20% | 1.14% | 0.94% |
| YUMYum! Brands, Inc. | 0.17% | 1.01% | 0.84% |
28.6% of XLY 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 XLY?
VYM has an expense ratio of 0.04% while XLY charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLY?
Over the past year VYM returned +12.81% vs -9.01% for XLY, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.70% vs +9.41% for XLY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLY?
XLY has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLY -60.1%.
Should I hold both VYM and XLY?
VYM and XLY have a monthly-return correlation of 0.79, 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 XLY?
28.6% of XLY's money is in holdings VYM also owns. 28.6% of XLY's is in holdings VYM also owns. They hold 22 positions in common, counted across the 557 positions we hold weights for in VYM and 48 in XLY.
Which pays a higher dividend, VYM or XLY?
VYM yields 2.22% while XLY yields 0.77%, so VYM currently pays the higher dividend yield.
Is XLY better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLY over the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 68.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.