VYM vs XLSR
Vanguard High Dividend Yield ETF vs State Street US Sector Rotation ETF
Which is better, VYM or XLSR?
Large Cap Value against Large Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLSR over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 85.3%.
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 | XLSR |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.70% |
| AUM | $78.9B | $1.1B |
| Dividend Yield | 2.37% | 0.45% |
| Holdings | 608 | 26 |
| YTD Return | +11.83%Best | +7.62% |
| 1Y Return | +15.96%Best | +12.95% |
| 3Y Return (annualized) | +18.60%Best | +17.39% |
| 5Y Return (annualized) | +11.51%Best | +9.72% |
| Volatility (annualized) | 15.4%Best | 16.1% |
| Max Drawdown | -35.7% | -32.9%Best |
| $10,000 over 5 years | $17,241Best | $15,901 |
| Top 10 Weight | 25.8%Best | 85.3% |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Nov 10, 2006 | Apr 2, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Apr 3, 2019 to Oct 14, 2026 (7.5 years).
VYM vs XLSR 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 7.5 years both funds cover.
VYM vs XLSR Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street US Sector Rotation ETF (XLSR) is an ETF from State Street Investment Management. Over the past year VYM returned +15.96% while XLSR returned +12.95%. Year to date, VYM is up 11.83% versus a gain of 7.62% for XLSR.
Over three years, VYM compounded at +18.60% per year against +17.39% for XLSR; over five years the annualized figures are +11.51% and +9.72% respectively. Across the full 8-year window we track, XLSR has the edge at +12.30% annualized vs +10.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLSR has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.4% 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 -35.7% for VYM and -32.9% for XLSR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLSR charges 0.70%. On a $10,000 position that is $4 vs $70 annually, a gap of $66 per year that compounds over a long holding period. On income, VYM currently yields 2.37% against 0.45% for XLSR.
Holdings Overlap
12.0% of VYM's money is in holdings XLSR also owns. 2.2% of XLSR's money is in holdings VYM also owns.
VYM and XLSR share little of their money.
5 positions in common, counted across the 602 positions we hold weights for in VYM and 25 in XLSR, against full books of 608 and 26.
What only one of them owns
Measured across the 602 and 25 positions we hold weights for.
VYM holds 568 positions XLSR does not, 85.9% of the fund.
Largest: JPM 3.83%, JNJ 2.58%, ABBV 1.83%, CSCO 1.76%, BAC 1.65%
You are not choosing between two funds in isolation.
Whichever of VYM and XLSR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XLSR?
VYM has an expense ratio of 0.04% while XLSR charges 0.70%. VYM is the cheaper option, by $66 a year on a $10,000 investment.
Which performed better, VYM or XLSR?
Over the past year VYM returned +15.96% vs +12.95% for XLSR, so VYM leads on 1-year performance. Over the longest common window we track (8 years), VYM annualized +10.83% vs +12.30% for XLSR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLSR?
XLSR has been the more volatile fund at 16.1% annualized versus 15.4% for VYM. Worst drawdown: VYM -35.7% vs XLSR -32.9%.
Should I hold both VYM and XLSR?
VYM and XLSR have a monthly-return correlation of 0.86, 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 XLSR?
12.0% of VYM's money is in holdings XLSR also owns. 2.2% of XLSR's is in holdings VYM also owns. They hold 5 positions in common, counted across the 602 positions we hold weights for in VYM and 25 in XLSR.
Which pays a higher dividend, VYM or XLSR?
VYM yields 2.37% while XLSR yields 0.45%, so VYM currently pays the higher dividend yield.
Is XLSR better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XLSR over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 85.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.