VYM vs XLB
Vanguard High Dividend Yield ETF vs State Street Materials Select Sector SPDR ETF
Which is better, VYM or XLB?
Large Cap Value against Large Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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 | VYM | XLB |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $78.9B | $7.8B |
| Dividend Yield | 2.37% | 1.61% |
| Holdings | 608 | 56 |
| YTD Return | +11.83%Best | +9.08% |
| 1Y Return | +15.96%Best | +13.49% |
| 3Y Return (annualized) | +18.60%Best | +10.32% |
| 5Y Return (annualized) | +11.51%Best | +5.51% |
| Volatility (annualized) | 14.6%Best | 20.2% |
| Max Drawdown | -58.8%Best | -60.7% |
| $10,000 over 5 years | $17,241Best | $13,076 |
| Top 10 Weight | 25.8%Best | 59.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 14, 2026 (19.9 years).
VYM 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 19.9 years both funds cover.
VYM vs XLB Performance
Vanguard High Dividend Yield ETF (VYM) 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 VYM returned +15.96% while XLB returned +13.49%. Year to date, VYM is up 11.83% versus a gain of 9.08% for XLB.
Over three years, VYM compounded at +18.60% per year against +10.32% for XLB; over five years the annualized figures are +11.51% and +5.51% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs +6.13%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLB has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -60.7% 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
VYM charges 0.04% per year while XLB 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 2.37% against 1.61% for XLB.
Holdings Overlap
3.0% of VYM's money is in holdings XLB also owns. 62.2% of XLB's money is in holdings VYM also owns.
The two portfolios partly overlap.
16 positions in common, counted across the 602 positions we hold weights for in VYM and 26 in XLB, against full books of 608 and 56.
What only one of them owns
Our book lists 8 positions for XLB that do not appear in our book for VYM (29.2% of the fund), and 558 for VYM that do not appear in XLB (95.1%).
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 XLB | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 0.91% | 12.96% | 12.05% |
| NEMNewmont Corp Common | 0.54% | 8.14% | 7.60% |
| APDAir Products & Chemicals Inc. | 0.27% | 4.71% | 4.44% |
| NUENucor Corp. | 0.22% | 4.63% | 4.41% |
| CRH:LNCrh Plc - Common | 0.25% | 3.96% | 3.71% |
| PPGPpg Industries Inc. | 0.10% | 3.23% | 3.13% |
| SWSmurfit WestRock plc Common Shares | 0.10% | 3.11% | 3.01% |
| IFFInternational Flavors & Fragrances Inc. | 0.09% | 2.93% | 2.84% |
| DOWDow Inc. | 0.09% | 2.87% | 2.78% |
| PKGPackaging Corp. Of America | 0.08% | 2.85% | 2.77% |
62.2% of XLB 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XLB?
VYM has an expense ratio of 0.04% while XLB charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLB?
Over the past year VYM returned +15.96% vs +13.49% for XLB, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.82% vs +6.13% for XLB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLB?
XLB has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLB -60.7%.
Should I hold both VYM and XLB?
VYM 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 VYM and XLB?
62.2% of XLB's money is in holdings VYM also owns. 62.2% of XLB's is in holdings VYM also owns. They hold 16 positions in common, counted across the 602 positions we hold weights for in VYM and 26 in XLB.
Which pays a higher dividend, VYM or XLB?
VYM yields 2.37% while XLB yields 1.61%, so VYM currently pays the higher dividend yield.
Is XLB better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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.