VGIT vs. XLY
VGIT (Vanguard Intermediate-Term Treasury ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, VGIT returned 1.20%/yr vs 12.72%/yr for XLY. At a correlation of -0.18, they often move in opposite directions. VGIT charges 0.03%/yr vs 0.13%/yr for XLY.
Performance
VGIT vs. XLY - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VGIT achieves a -0.17% return, which is significantly higher than XLY's -2.41% return. Over the past 10 years, VGIT has underperformed XLY with an annualized return of 1.20%, while XLY has yielded a comparatively higher 12.72% annualized return.
VGIT
- 1D
- 0.51%
- 1M
- 0.19%
- YTD
- -0.17%
- 6M
- 0.02%
- 1Y
- 3.61%
- 3Y*
- 3.55%
- 5Y*
- 0.03%
- 10Y*
- 1.20%
XLY
- 1D
- 2.48%
- 1M
- -1.68%
- YTD
- -2.41%
- 6M
- -2.84%
- 1Y
- 9.18%
- 3Y*
- 13.28%
- 5Y*
- 6.94%
- 10Y*
- 12.72%
VGIT vs. XLY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.17% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
XLY Consumer Discretionary Select Sector SPDR Fund | -2.41% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.63% | 28.39% | 1.58% | 22.82% |
Correlation
The correlation between VGIT and XLY is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.16 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.18 |
The correlation between VGIT and XLY shifts across timeframes, from -0.18 (all time) to 0.23 (1 year), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VGIT vs. XLY — Risk / Return Rank
VGIT
XLY
VGIT vs. XLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) 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.
| VGIT | XLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.58 | ||
| Sortino ratioReturn per unit of downside risk | +0.83 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.10 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.28 | 0.62 | +0.66 |
| Martin ratioReturn relative to average drawdown | 3.62 | 1.89 | +1.73 |
Loading charts...
Drawdowns
VGIT vs. XLY - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VGIT and XLY.
Loading charts...
Drawdown Indicators
| VGIT | XLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -59.05% | +43.00% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -14.98% | +12.15% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -26.01% | +21.67% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -39.67% | +24.65% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -39.67% | +23.62% |
Current DrawdownCurrent decline from peak | -2.11% | -6.41% | +4.30% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -9.55% | +6.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.00% | 4.86% | -3.86% |
Volatility
VGIT vs. XLY - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.14%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.20%. This indicates that VGIT experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| VGIT | XLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.14% | 6.20% | -5.06% |
Volatility (6M)Calculated over the trailing 6-month period | 2.41% | 13.52% | -11.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.35% | 18.29% | -14.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 23.84% | -18.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 22.08% | -17.58% |
VGIT vs. XLY - Expense Ratio Comparison
VGIT has a 0.03% 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
VGIT vs. XLY - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.86%, more than XLY's 0.77% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | 3.86% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
XLY Consumer Discretionary Select Sector SPDR Fund | 0.77% | 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
VGIT and XLY have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLY has higher volatility (6.20%) compared to VGIT (1.14%). In terms of maximum drawdown, VGIT dropped -16.05% vs XLY's -59.05%.
On 10-year performance, XLY leads with 12.72% vs 1.20% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, VGIT has been the lower-risk option at 1.14%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLY has performed better with a 12.72% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.13% for XLY.
VGIT has the higher dividend yield at 3.86%, compared with 0.77% for XLY.
VGIT is categorized as Government Bonds, while XLY is Consumer Discretionary Equities. VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VGIT and 0.13% for XLY.
VGIT currently has the higher Sharpe Ratio (1.08 vs 0.50), 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.
Find the right allocation for VGIT and XLY
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer