VYM vs XTL

Quick Verdict

VYM has a lower expense ratio. XTL delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: XTLMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXTLWinner
Expense Ratio0.04%0.35%
AUM$79.0B$573M
Dividend Yield2.86%1.16%
Holdings56842
YTD Return+16.10%+38.34%
1Y Return+25.99%+74.07%
3Y Return (annualized)+18.29%+43.04%
5Y Return (annualized)+12.35%+17.75%
Volatility (annualized)14.6%20.4%
Max Drawdown-58.8%-37.0%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 10, 2006Jan 26, 2011

VYM vs XTL Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street SPDR S&P Telecom ETF (XTL) is a ETF from State Street Investment Management. Over the past year VYM returned +25.99% while XTL returned +74.07%. Year to date, VYM is up 16.10% versus a gain of 38.34% for XTL.

Over three years, VYM compounded at +18.29% per year against +43.04% for XTL; over five years the annualized figures are +12.35% and +17.75% respectively. Across the full 16-year window we track, XTL has the edge at +10.04% annualized vs +7.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XTL has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -37.0% for XTL. 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while XTL 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 1.16% for XTL.

Holdings Overlap

1.4%overlap

VYM and XTL share 1 holdings out of 558 unique holdings combined, representing a 1.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VYMWeight in XTLDifference
CSCO1.39%3.02%1.63%

Frequently Asked Questions

Which is cheaper, VYM or XTL?

VYM has an expense ratio of 0.04% while XTL 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 XTL?

Over the past year VYM returned +25.99% vs +74.07% for XTL, so XTL leads on 1-year performance. Over the longest common window we track (16 years), VYM annualized +7.08% vs +10.04% for XTL. Past performance does not guarantee future results.

Which is riskier, VYM or XTL?

XTL has been the more volatile fund at 20.4% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XTL -37.0%.

Should I hold both VYM and XTL?

VYM and XTL have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XTL?

VYM and XTL share 1 common holdings with a 1.4% weight overlap. Combined, they hold 558 unique securities.

Which pays a higher dividend, VYM or XTL?

VYM yields 2.86% while XTL yields 1.16%, so VYM currently pays the higher dividend yield.

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