VCR vs. XLY
VCR (Vanguard Consumer Discretionary ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both Consumer Discretionary Equities funds - VCR tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index while XLY tracks the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, VCR returned 13.68%/yr vs 12.73%/yr for XLY. With a 0.97 correlation, they move nearly in lockstep. VCR charges 0.10%/yr vs 0.13%/yr for XLY.
Performance
VCR vs. XLY - Performance Comparison
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Returns By Period
In the year-to-date period, VCR achieves a -2.41% return, which is significantly higher than XLY's -4.35% return. Over the past 10 years, VCR has outperformed XLY with an annualized return of 13.68%, while XLY has yielded a comparatively lower 12.73% annualized return.
VCR
- 1D
- -0.91%
- 1M
- -2.81%
- YTD
- -2.41%
- 6M
- -4.50%
- 1Y
- 8.02%
- 3Y*
- 12.53%
- 5Y*
- 5.14%
- 10Y*
- 13.68%
XLY
- 1D
- -1.03%
- 1M
- -4.36%
- YTD
- -4.35%
- 6M
- -6.51%
- 1Y
- 6.94%
- 3Y*
- 12.11%
- 5Y*
- 6.04%
- 10Y*
- 12.73%
VCR vs. XLY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VCR Vanguard Consumer Discretionary ETF | -2.41% | 5.77% | 24.27% | 40.38% | -35.15% | 24.86% | 48.36% | 27.45% | -2.31% | 22.82% |
XLY Consumer Discretionary Select Sector SPDR Fund | -4.35% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.63% | 28.39% | 1.58% | 22.82% |
Correlation
The correlation between VCR and XLY is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004 | 0.97 |
The correlation between VCR and XLY has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
VCR vs. XLY — Risk / Return Rank
VCR
XLY
VCR vs. XLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Discretionary ETF (VCR) and Consumer Discretionary Select Sector SPDR Fund (XLY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| VCR | XLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.05 | ||
| Sortino ratioReturn per unit of downside risk | +0.08 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.08 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.52 | 0.47 | +0.05 |
| Martin ratioReturn relative to average drawdown | 1.57 | 1.40 | +0.17 |
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Drawdowns
VCR vs. XLY - Drawdown Comparison
The maximum VCR drawdown since its inception was -61.54%, roughly equal to the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VCR and XLY.
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Drawdown Indicators
| VCR | XLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -61.54% | -59.05% | -2.49% |
Max Drawdown (1Y)Largest decline over 1 year | -15.59% | -14.98% | -0.61% |
Max Drawdown (3Y)Largest decline over 3 years | -27.36% | -26.01% | -1.35% |
Max Drawdown (5Y)Largest decline over 5 years | -39.20% | -39.67% | +0.47% |
Max Drawdown (10Y)Largest decline over 10 years | -39.20% | -39.67% | +0.47% |
Current DrawdownCurrent decline from peak | -6.85% | -8.28% | +1.43% |
Average DrawdownAverage peak-to-trough decline | -9.39% | -9.55% | +0.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.11% | 4.97% | +0.14% |
Volatility
VCR vs. XLY - Volatility Comparison
Vanguard Consumer Discretionary ETF (VCR) and Consumer Discretionary Select Sector SPDR Fund (XLY) have volatilities of 6.34% and 6.48%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VCR | XLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.34% | 6.48% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 13.88% | 13.82% | +0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.86% | 18.55% | +0.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.10% | 23.91% | +0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.44% | 22.09% | +0.35% |
VCR vs. XLY - Expense Ratio Comparison
VCR has a 0.10% expense ratio, which is lower than XLY's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VCR vs. XLY - Dividend Comparison
VCR's dividend yield for the trailing twelve months is around 0.75%, less than XLY's 0.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VCR Vanguard Consumer Discretionary ETF | 0.75% | 0.74% | 0.74% | 0.84% | 0.98% | 0.79% | 1.71% | 1.17% | 1.37% | 1.21% | 1.60% | 1.32% |
XLY Consumer Discretionary Select Sector SPDR Fund | 0.79% | 0.79% | 0.72% | 0.78% | 1.00% | 0.53% | 0.82% | 1.28% | 1.34% | 1.20% | 1.71% | 1.43% |
Frequently Asked Questions
With a correlation of 0.99, VCR and XLY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
XLY has higher volatility (6.48%) compared to VCR (6.34%). In terms of maximum drawdown, VCR dropped -61.54% vs XLY's -59.05%.
On 10-year performance, VCR leads with 13.68% vs 12.73% for XLY. On fees, VCR is cheaper at 0.10% per year. On volatility, VCR has been the lower-risk option at 6.34%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VCR has performed better with a 13.68% return vs 12.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCR is cheaper with a 0.10% expense ratio, compared with 0.13% for XLY.
XLY has the higher dividend yield at 0.79%, compared with 0.75% for VCR.
VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.10% for VCR and 0.13% for XLY.
VCR currently has the higher Sharpe Ratio (0.43 vs 0.38), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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