VTI vs XLB
Vanguard Morningstar Total Stock Market ETF vs State Street Materials Select Sector SPDR ETF
Which is better, VTI or XLB?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 59.5%.
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 | VTI | XLB |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $689.2B | $7.8B |
| Dividend Yield | 1.06% | 1.61% |
| Holdings | 3,524 | 56 |
| YTD Return | +13.02%Best | +9.08% |
| 1Y Return | +16.63%Best | +13.49% |
| 3Y Return (annualized) | +21.97%Best | +10.32% |
| 5Y Return (annualized) | +11.99%Best | +5.51% |
| Volatility (annualized) | 15.3%Best | 19.9% |
| Max Drawdown | -56.6%Best | -60.7% |
| $10,000 over 5 years | $17,616Best | $13,076 |
| Top 10 Weight | 33.5%Best | 59.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | May 24, 2001 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Oct 14, 2026 (25.4 years).
VTI vs XLB 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 25.4 years both funds cover.
VTI vs XLB Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US) and State Street Materials Select Sector SPDR ETF (XLB) is an ETF from SPDR State Street Global Advisors. Over the past year VTI returned +16.63% while XLB returned +13.49%. Year to date, VTI is up 13.02% versus a gain of 9.08% for XLB.
Over three years, VTI compounded at +21.97% per year against +10.32% for XLB; over five years the annualized figures are +11.99% and +5.51% respectively. Across the full 25-year window we track, VTI has the edge at +8.04% annualized vs +6.41%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLB has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 15.3% for VTI. 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 -56.6% for VTI and -60.7% for XLB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while XLB 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, VTI currently yields 1.06% against 1.61% for XLB.
Holdings Overlap
1.4% of VTI's money is in holdings XLB also owns. 88.6% of XLB's money is in holdings VTI also owns.
Most of XLB is already inside VTI. Owning both mostly buys the same companies twice.
22 positions in common, counted across the 3,441 positions we hold weights for in VTI and 26 in XLB, against full books of 3,524 and 56.
What only one of them owns
Our book lists 2 positions for XLB that do not appear in our book for VTI (2.8% of the fund), and 1,135 for VTI that do not appear in XLB (96.2%).
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 VTI | Weight in XLB | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 0.31% | 12.96% | 12.65% |
| NEMNewmont Corp Common | 0.18% | 8.14% | 7.96% |
| CTVACorteva Inc Ctva | 0.08% | 5.04% | 4.96% |
| ECLEcolab, Inc. | 0.10% | 4.81% | 4.71% |
| SHWSherwin Williams Co/the | 0.11% | 4.76% | 4.65% |
| APDAir Products & Chemicals Inc. | 0.09% | 4.71% | 4.62% |
| NUENucor Corp. | 0.08% | 4.63% | 4.55% |
| VMCVulcan Materials Co. | 0.05% | 4.15% | 4.10% |
| MLMMartin Marietta Materials Inc. | 0.04% | 4.13% | 4.09% |
| CRH:LNCrh Plc - Common | 0.09% | 3.96% | 3.87% |
88.6% of XLB is already inside VTI.
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, VTI or XLB?
VTI has an expense ratio of 0.03% while XLB charges 0.08%. VTI is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTI or XLB?
Over the past year VTI returned +16.63% vs +13.49% for XLB, so VTI leads on 1-year performance. Over the longest common window we track (25 years), VTI annualized +8.04% vs +6.41% for XLB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTI or XLB?
XLB has been the more volatile fund at 19.9% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs XLB -60.7%.
Should I hold both VTI and XLB?
VTI and XLB have a monthly-return correlation of 0.85, 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 VTI and XLB?
88.6% of XLB's money is in holdings VTI also owns. 88.6% of XLB's is in holdings VTI also owns. They hold 22 positions in common, counted across the 3,441 positions we hold weights for in VTI and 26 in XLB.
Which pays a higher dividend, VTI or XLB?
VTI yields 1.06% while XLB yields 1.61%, so XLB currently pays the higher dividend yield.
Is XLB better than VTI?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 59.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.