VDC vs. XLP

Last updated Jun 16, 2026

VDC (Vanguard Consumer Staples ETF) and XLP (State Street Consumer Staples Select Sector SPDR ETF) are both Consumer Staples Equities funds - VDC tracks the MSCI US Investable Market Consumer Staples 25/50 Index while XLP tracks the Consumer Staples Select Sector Index. Both are passively managed. Over the past 10 years, VDC returned 7.99%/yr vs 7.58%/yr for XLP. With a 0.96 correlation, they move nearly in lockstep. VDC charges 0.09%/yr vs 0.08%/yr for XLP.

Performance

VDC vs. XLP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Consumer Staples ETF (VDC) and State Street Consumer Staples Select Sector SPDR ETF (XLP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VDC having a 10.18% return and XLP slightly higher at 10.66%. Over the past 10 years, VDC has outperformed XLP with an annualized return of 7.99%, while XLP has yielded a comparatively lower 7.58% annualized return.

VDC

• 1D: -0.33%
• 1M: 0.10%
• YTD: 10.18%
• 6M: 8.00%
• 1Y: 8.20%
• 3Y*: 8.39%
• 5Y*: 7.45%
• 10Y*: 7.99%

XLP

• 1D: -0.40%
• 1M: 0.99%
• YTD: 10.66%
• 6M: 8.80%
• 1Y: 8.50%
• 3Y*: 7.50%
• 5Y*: 6.92%
• 10Y*: 7.58%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VDC vs. XLP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDC Vanguard Consumer Staples ETF	10.18%	2.17%	13.30%	2.38%	-1.79%	17.64%	10.86%	26.11%	-7.79%	11.85%
XLP State Street Consumer Staples Select Sector SPDR ETF	10.66%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%

Correlation

The correlation between VDC and XLP is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
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	0.96

The correlation between VDC and XLP has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

VDC vs. XLP - Sectors Allocation Comparison

Sectors	VDC	XLP
Consumer Defensive	97.5%	99.0%
Consumer Cyclical	1.8%	1.0%
Industrials	0.3%	-
Basic Materials	0.3%	-
Healthcare	0.0%	-
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

VDC vs. XLP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VDC

VDC Risk / Return Rank: 20
VDC Sharpe Ratio Rank: 21
VDC Sortino Ratio Rank: 21
VDC Omega Ratio Rank: 19
VDC Calmar Ratio Rank: 21
VDC Martin Ratio Rank: 19

XLP

XLP Risk / Return Rank: 20
XLP Sharpe Ratio Rank: 21
XLP Sortino Ratio Rank: 21
XLP Omega Ratio Rank: 19
XLP Calmar Ratio Rank: 21
XLP Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VDC vs. XLP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Staples ETF (VDC) and State Street Consumer Staples Select Sector SPDR ETF (XLP). 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.

	VDC	XLP	Difference
Sharpe ratio: Return per unit of total volatility	0.66	0.67	-0.01
Sortino ratio: Return per unit of downside risk	1.03	1.04	0.00
Omega ratio: Gain probability vs. loss probability	1.12	1.12	0.00
Calmar ratio: Return relative to maximum drawdown	0.89	0.88	+0.01
Martin ratio: Return relative to average drawdown	1.80	1.70	+0.10

VDC vs. XLP - Sharpe Ratio Comparison

The current VDC Sharpe Ratio is 0.66, which is comparable to the XLP Sharpe Ratio of 0.67. The chart below compares the historical Sharpe Ratios of VDC and XLP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VDC vs. XLP - Drawdown Comparison

The maximum VDC drawdown since its inception was -34.24%, roughly equal to the maximum XLP drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for VDC and XLP.

Drawdown Indicators

	VDC	XLP	Difference
Max Drawdown Largest peak-to-trough decline	-34.24%	-35.90%	+1.66%
Max Drawdown (1Y) Largest decline over 1 year	-9.28%	-9.69%	+0.41%
Max Drawdown (3Y) Largest decline over 3 years	-11.78%	-12.39%	+0.61%
Max Drawdown (5Y) Largest decline over 5 years	-16.55%	-16.30%	-0.25%
Max Drawdown (10Y) Largest decline over 10 years	-25.31%	-24.51%	-0.80%
Current Drawdown Current decline from peak	-4.68%	-4.50%	-0.18%
Average Drawdown Average peak-to-trough decline	-3.73%	-7.06%	+3.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	5.02%	-0.44%

Volatility

VDC vs. XLP - Volatility Comparison

Vanguard Consumer Staples ETF (VDC) and State Street Consumer Staples Select Sector SPDR ETF (XLP) have volatilities of 4.63% and 4.55%, 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.

Volatility by Period

	VDC	XLP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.63%	4.55%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	10.00%	10.13%	-0.13%
Volatility (1Y) Calculated over the trailing 1-year period	12.53%	12.85%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.18%	13.34%	-0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.66%	14.75%	-0.09%

VDC vs. XLP - Expense Ratio Comparison

VDC has a 0.09% expense ratio, which is higher than XLP's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VDC vs. XLP - Dividend Comparison

VDC's dividend yield for the trailing twelve months is around 2.08%, less than XLP's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDC Vanguard Consumer Staples ETF	2.08%	2.26%	2.33%	2.65%	2.37%	2.14%	2.50%	2.44%	2.78%	2.52%	2.39%	2.55%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.54%	2.75%	2.77%	2.63%	2.47%	2.28%	2.50%	2.57%	3.04%	2.62%	2.53%	2.52%

Frequently Asked Questions

Can I hold both VDC and XLP in my portfolio?

With a correlation of 0.98, VDC and XLP 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.

Which is riskier, VDC or XLP?

VDC has higher volatility (4.63%) compared to XLP (4.55%). In terms of maximum drawdown, VDC dropped -34.24% vs XLP's -35.90%.

Which ETF is better, VDC or XLP?

On 10-year performance, VDC leads with 7.99% vs 7.58% for XLP. On fees, XLP is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDC or XLP?

Over the 10-year period, VDC has performed better with a 7.99% return vs 7.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDC or XLP?

XLP is cheaper with a 0.08% expense ratio, compared with 0.09% for VDC.

Which ETF pays a higher dividend yield, VDC or XLP?

XLP has the higher dividend yield at 2.54%, compared with 2.08% for VDC.

What is the main difference between VDC and XLP?

VDC tracks MSCI US Investable Market Consumer Staples 25/50 Index, while XLP tracks Consumer Staples Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.09% for VDC and 0.08% for XLP.

Which has better risk-adjusted returns?

XLP currently has the higher Sharpe Ratio (0.67 vs 0.66), 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.