VYM vs XOP
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Oil & Gas Exploration & Production ETF
Quick Verdict
VYM has a lower expense ratio. XOP delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | XOP | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $79.0B | $3.5B | |
| Dividend Yield | 2.86% | 2.11% | |
| Holdings | 568 | 53 | |
| YTD Return | +16.53% | +39.72% | |
| 1Y Return | +25.03% | +48.24% | |
| 3Y Return (annualized) | +18.54% | +8.84% | |
| 5Y Return (annualized) | +12.25% | +19.23% | |
| Volatility (annualized) | 14.6% | 37.1% | |
| Max Drawdown | -58.8% | -91.0% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jun 19, 2006 |
VYM vs XOP Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a ETF from State Street Investment Management. Over the past year VYM returned +25.03% while XOP returned +48.24%. Year to date, VYM is up 16.53% versus a gain of 39.72% for XOP.
Over three years, VYM compounded at +18.54% per year against +8.84% for XOP; over five years the annualized figures are +12.25% and +19.23% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +1.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XOP has been the more volatile fund, with annualized monthly volatility of 37.1% 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 -91.0% for XOP. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XOP 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 2.11% for XOP.
Holdings Overlap
VYM and XOP share 28 holdings out of 582 unique holdings combined, representing a 6.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XOP?
VYM has an expense ratio of 0.04% while XOP 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 XOP?
Over the past year VYM returned +25.03% vs +48.24% for XOP, so XOP leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.10% vs +1.90% for XOP. Past performance does not guarantee future results.
Which is riskier, VYM or XOP?
XOP has been the more volatile fund at 37.1% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XOP -91.0%.
Should I hold both VYM and XOP?
VYM and XOP have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XOP?
VYM and XOP share 28 common holdings with a 6.9% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, VYM or XOP?
VYM yields 2.86% while XOP yields 2.11%, so VYM currently pays the higher dividend yield.
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