VOO vs XLRE
Vanguard S&P 500 ETF vs State Street Real Estate Select Sector SPDR ETF
Which is better, VOO or XLRE?
VOO has been ahead.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.9% of the fund in its ten largest positions against 61.7%.
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 | VOO | XLRE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $1.0T | $7.7B |
| Dividend Yield | 1.06% | 3.19% |
| Holdings | 506 | 66 |
| YTD Return | +13.57%Best | +5.22% |
| 1Y Return | +17.55%Best | +4.00% |
| 3Y Return (annualized) | +22.46%Best | +9.87% |
| 5Y Return (annualized) | +13.28%Best | +1.27% |
| Volatility (annualized) | 15.0%Best | 17.0% |
| Max Drawdown | -34.3%Best | -39.3% |
| $10,000 over 5 years | $18,654Best | $10,651 |
| Top 10 Weight | 37.9%Best | 61.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 7, 2010 | Oct 7, 2015 |
Volatility and max drawdown are measured over the window both funds cover: Oct 8, 2015 to Oct 14, 2026 (11 years).
VOO vs XLRE 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 11 years both funds cover.
VOO vs XLRE Performance
Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and State Street Real Estate Select Sector SPDR ETF (XLRE) is an ETF from SPDR State Street Global Advisors. Over the past year VOO returned +17.55% while XLRE returned +4.00%. Year to date, VOO is up 13.57% versus a gain of 5.22% for XLRE.
Over three years, VOO compounded at +22.46% per year against +9.87% for XLRE; over five years the annualized figures are +13.28% and +1.27% respectively. Across the full 11-year window we track, VOO has the edge at +13.80% annualized vs +4.73%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLRE has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 15.0% for VOO. 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 -34.3% for VOO and -39.3% for XLRE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while XLRE charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VOO currently yields 1.06% against 3.19% for XLRE.
Holdings Overlap
1.8% of VOO's money is in holdings XLRE also owns. 99.8% of XLRE's money is in holdings VOO also owns.
Most of XLRE is already inside VOO. Owning both mostly buys the same companies twice.
30 positions in common, counted across the 504 positions we hold weights for in VOO and 31 in XLRE, against full books of 506 and 66.
What only one of them owns
Our book lists 1 positions for XLRE that do not appear in our book for VOO (0.0% of the fund), and 469 for VOO that do not appear in XLRE (97.9%).
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 VOO | Weight in XLRE | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 0.25% | 11.58% | 11.33% |
| PLDPrologis Inc | 0.20% | 8.96% | 8.76% |
| EQIXEquinix Inc. Real Estate Investment Trust | 0.16% | 7.13% | 6.97% |
| AMTAmerican Tower Corp (Aka: Snr S* Sp Gst | 0.12% | 5.77% | 5.65% |
| DLRDigital Realty Trust Inc. | 0.10% | 5.08% | 4.98% |
| EQRVivmark Residential | 0.07% | 5.05% | 4.98% |
| SPGSimon Property Group Inc | 0.10% | 4.62% | 4.52% |
| VTRVentas Inc . | 0.07% | 4.59% | 4.52% |
| PSAPublic Storage | 0.08% | 4.49% | 4.41% |
| ORealty Income Corp. | 0.09% | 4.43% | 4.34% |
99.8% of XLRE is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VOO or XLRE?
VOO has an expense ratio of 0.03% while XLRE charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLRE?
Over the past year VOO returned +17.55% vs +4.00% for XLRE, so VOO leads on 1-year performance. Over the longest common window we track (11 years), VOO annualized +13.80% vs +4.73% for XLRE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLRE?
XLRE has been the more volatile fund at 17.0% annualized versus 15.0% for VOO. Worst drawdown: VOO -34.3% vs XLRE -39.3%.
Should I hold both VOO and XLRE?
VOO and XLRE have a monthly-return correlation of 0.75, 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 VOO and XLRE?
99.8% of XLRE's money is in holdings VOO also owns. 99.8% of XLRE's is in holdings VOO also owns. They hold 30 positions in common, counted across the 504 positions we hold weights for in VOO and 31 in XLRE.
Which pays a higher dividend, VOO or XLRE?
VOO yields 1.06% while XLRE yields 3.19%, so XLRE currently pays the higher dividend yield.
Is XLRE better than VOO?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.9% of the fund in its ten largest positions against 61.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.