VYM vs XLP
Vanguard High Dividend Yield ETF vs State Street Consumer Staples Select Sector SPDR ETF
Which is better, VYM or XLP?
Each has led over a different period.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLP over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 62.5%.
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 | XLP |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $78.9B | $13.9B |
| Dividend Yield | 2.37% | 2.59% |
| Holdings | 608 | 76 |
| YTD Return | +11.83% | +12.91%Best |
| 1Y Return | +15.96%Best | +11.80% |
| 3Y Return (annualized) | +18.60%Best | +11.44% |
| 5Y Return (annualized) | +11.51%Best | +6.72% |
| Volatility (annualized) | 14.6% | 12.4%Best |
| Max Drawdown | -58.8% | -34.2%Best |
| $10,000 over 5 years | $17,241Best | $13,843 |
| Top 10 Weight | 25.8%Best | 62.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| 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 XLP 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 XLP Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF from SPDR State Street Global Advisors. Over the past year VYM returned +15.96% while XLP returned +11.80%. Year to date, VYM is up 11.83% versus a gain of 12.91% for XLP.
Over three years, VYM compounded at +18.60% per year against +11.44% for XLP; over five years the annualized figures are +11.51% and +6.72% respectively. Across the full 20-year window we track, XLP has the edge at +7.03% annualized vs +6.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.4% for XLP. 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 -34.2% for XLP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLP 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 2.59% for XLP.
Holdings Overlap
7.9% of VYM's money is in holdings XLP also owns. 72.4% of XLP's money is in holdings VYM also owns.
Most of XLP is already inside VYM. Owning both mostly buys the same companies twice.
28 positions in common, counted across the 602 positions we hold weights for in VYM and 35 in XLP, against full books of 608 and 76.
What only one of them owns
Our book lists 7 positions for XLP that do not appear in our book for VYM (27.5% of the fund), and 545 for VYM that do not appear in XLP (90.0%).
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 XLP | Difference |
|---|---|---|---|
| KOCoca-Cola Co. (The) | 1.39% | 7.45% | 6.06% |
| PGProcter & Gamble Company | 1.36% | 7.37% | 6.01% |
| PMPhilip Morris International Inc. | 1.18% | 6.49% | 5.31% |
| PEPPepsico Inc. | 0.77% | 4.36% | 3.59% |
| TGTTARGET CORP | 0.29% | 4.60% | 4.31% |
| MDLZMondelez International Inc Com A Npv | 0.32% | 4.49% | 4.17% |
| MOAltria Group Inc | 0.46% | 4.35% | 3.89% |
| CLColgate-Palmolive Co | 0.29% | 4.45% | 4.16% |
| KDPKeurig Dr Pepper Inc (kdp Us) | 0.17% | 2.78% | 2.61% |
| ADMArcher-daniels D | 0.16% | 2.72% | 2.56% |
72.4% of XLP 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 XLP?
VYM has an expense ratio of 0.04% while XLP charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLP?
Over the past year VYM returned +15.96% vs +11.80% for XLP, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.82% vs +7.03% for XLP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLP?
VYM has been the more volatile fund at 14.6% annualized versus 12.4% for XLP. Worst drawdown: VYM -58.8% vs XLP -34.2%.
Should I hold both VYM and XLP?
VYM and XLP have a monthly-return correlation of 0.79, 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 XLP?
72.4% of XLP's money is in holdings VYM also owns. 72.4% of XLP's is in holdings VYM also owns. They hold 28 positions in common, counted across the 602 positions we hold weights for in VYM and 35 in XLP.
Which pays a higher dividend, VYM or XLP?
VYM yields 2.37% while XLP yields 2.59%, so XLP currently pays the higher dividend yield.
Is XLP better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLP over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 62.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.