VGIT vs. XLP

Last updated Jun 9, 2026

VGIT (Vanguard Intermediate-Term Treasury ETF) and XLP (State Street Consumer Staples Select Sector SPDR ETF) are both exchange-traded funds - VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index, while XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index. Both are passively managed. Over the past 10 years, VGIT returned 1.16%/yr vs 7.21%/yr for XLP. At a correlation of -0.07, they often move in opposite directions. VGIT charges 0.03%/yr vs 0.08%/yr for XLP.

Performance

VGIT vs. XLP - Performance Comparison

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

Returns By Period

In the year-to-date period, VGIT achieves a -0.78% return, which is significantly lower than XLP's 7.54% return. Over the past 10 years, VGIT has underperformed XLP with an annualized return of 1.16%, while XLP has yielded a comparatively higher 7.21% annualized return.

VGIT

• 1D: -0.05%
• 1M: -0.87%
• YTD: -0.78%
• 6M: -0.42%
• 1Y: 3.55%
• 3Y*: 3.40%
• 5Y*: -0.07%
• 10Y*: 1.16%

XLP

• 1D: -0.44%
• 1M: -1.32%
• YTD: 7.54%
• 6M: 8.22%
• 1Y: 4.50%
• 3Y*: 7.23%
• 5Y*: 6.10%
• 10Y*: 7.21%

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

VGIT vs. XLP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGIT Vanguard Intermediate-Term Treasury ETF	-0.78%	7.34%	1.39%	4.28%	-10.53%	-2.64%	7.71%	6.19%	1.35%	1.70%
XLP State Street Consumer Staples Select Sector SPDR ETF	7.54%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%

Correlation

The correlation between VGIT and XLP is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.19
Correlation (5Y) Calculated over the trailing 5-year period	0.17
Correlation (10Y) Calculated over the trailing 10-year period	0.07
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009	-0.07

The correlation between VGIT and XLP shifts across timeframes, from -0.07 (all time) to 0.21 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

VGIT vs. XLP — Risk / Return Rank

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

VGIT

VGIT Risk / Return Rank: 31
VGIT Sharpe Ratio Rank: 32
VGIT Sortino Ratio Rank: 34
VGIT Omega Ratio Rank: 30
VGIT Calmar Ratio Rank: 28
VGIT Martin Ratio Rank: 28

XLP

XLP Risk / Return Rank: 15
XLP Sharpe Ratio Rank: 15
XLP Sortino Ratio Rank: 15
XLP Omega Ratio Rank: 14
XLP Calmar Ratio Rank: 15
XLP Martin Ratio Rank: 14

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.

VGIT vs. XLP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) 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.

	VGIT	XLP	Difference
Sharpe ratio: Return per unit of total volatility	1.08	0.36	+0.72
Sortino ratio: Return per unit of downside risk	1.64	0.60	+1.04
Omega ratio: Gain probability vs. loss probability	1.19	1.07	+0.12
Calmar ratio: Return relative to maximum drawdown	1.26	0.47	+0.79
Martin ratio: Return relative to average drawdown	3.66	0.91	+2.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGIT vs. XLP - Sharpe Ratio Comparison

The current VGIT Sharpe Ratio is 1.08, which is higher than the XLP Sharpe Ratio of 0.36. The chart below compares the historical Sharpe Ratios of VGIT 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.

Sharpe Ratios by Period

	VGIT	XLP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.08	0.36	+0.72
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.01	0.46	-0.47
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.26	0.49	-0.23
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.44	+0.05

Drawdowns

VGIT vs. XLP - Drawdown Comparison

The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum XLP drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for VGIT and XLP.

Drawdown Indicators

	VGIT	XLP	Difference
Max Drawdown Largest peak-to-trough decline	-16.05%	-35.90%	+19.85%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-9.69%	+6.86%
Max Drawdown (3Y) Largest decline over 3 years	-4.34%	-12.39%	+8.05%
Max Drawdown (5Y) Largest decline over 5 years	-15.02%	-16.30%	+1.28%
Max Drawdown (10Y) Largest decline over 10 years	-16.05%	-24.51%	+8.46%
Current Drawdown Current decline from peak	-2.71%	-7.19%	+4.48%
Average Drawdown Average peak-to-trough decline	-3.52%	-7.06%	+3.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.97%	4.97%	-4.00%

Volatility

VGIT vs. XLP - Volatility Comparison

The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.05%, while State Street Consumer Staples Select Sector SPDR ETF (XLP) has a volatility of 4.30%. This indicates that VGIT experiences smaller price fluctuations and is considered to be less risky than XLP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGIT	XLP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.05%	4.30%	-3.25%
Volatility (6M) Calculated over the trailing 6-month period	2.36%	9.97%	-7.61%
Volatility (1Y) Calculated over the trailing 1-year period	3.32%	12.75%	-9.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.38%	13.31%	-7.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.50%	14.74%	-10.24%

VGIT vs. XLP - Expense Ratio Comparison

VGIT has a 0.03% expense ratio, which is lower than XLP's 0.08% 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

VGIT vs. XLP - Dividend Comparison

VGIT's dividend yield for the trailing twelve months is around 3.88%, more than XLP's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGIT Vanguard Intermediate-Term Treasury ETF	3.88%	3.79%	3.67%	2.73%	1.74%	1.69%	2.23%	2.24%	2.05%	1.67%	1.69%	1.69%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.62%	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 VGIT and XLP in my portfolio?

VGIT and XLP have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGIT or XLP?

XLP has higher volatility (4.30%) compared to VGIT (1.05%). In terms of maximum drawdown, VGIT dropped -16.05% vs XLP's -35.90%.

Which ETF is better, VGIT or XLP?

On 10-year performance, XLP leads with 7.21% vs 1.16% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, VGIT has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGIT or XLP?

Over the 10-year period, XLP has performed better with a 7.21% return vs 1.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGIT or XLP?

VGIT is cheaper with a 0.03% expense ratio, compared with 0.08% for XLP.

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

VGIT has the higher dividend yield at 3.88%, compared with 2.62% for XLP.

What is the main difference between VGIT and XLP?

VGIT is categorized as Government Bonds, while XLP is Consumer Staples Equities. VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while XLP tracks Consumer Staples Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VGIT and 0.08% for XLP.

Which has better risk-adjusted returns?

VGIT currently has the higher Sharpe Ratio (1.08 vs 0.36), 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.