VIS vs. XLI

Last updated Jun 24, 2026

VIS (Vanguard Industrials ETF) and XLI (Industrial Select Sector SPDR Fund) are both Industrials Equities funds - VIS tracks the MSCI US Investable Market Industrials 25/50 Index while XLI tracks the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, VIS returned 14.60%/yr vs 14.55%/yr for XLI. With a 0.98 correlation, they move nearly in lockstep. VIS charges 0.09%/yr vs 0.08%/yr for XLI.

Performance

VIS vs. XLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Industrials ETF (VIS) and Industrial Select Sector SPDR Fund (XLI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIS achieves a 17.02% return, which is significantly higher than XLI's 15.45% return. Both investments have delivered pretty close results over the past 10 years, with VIS having a 14.60% annualized return and XLI not far behind at 14.55%.

VIS

• 1D: -2.14%
• 1M: 3.63%
• YTD: 17.02%
• 6M: 15.14%
• 1Y: 28.65%
• 3Y*: 22.20%
• 5Y*: 13.58%
• 10Y*: 14.60%

XLI

• 1D: -2.01%
• 1M: 3.97%
• YTD: 15.45%
• 6M: 14.08%
• 1Y: 25.43%
• 3Y*: 21.67%
• 5Y*: 13.47%
• 10Y*: 14.55%

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

VIS vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIS Vanguard Industrials ETF	17.02%	18.57%	16.85%	22.50%	-8.57%	20.80%	12.34%	30.09%	-14.01%	21.47%
XLI Industrial Select Sector SPDR Fund	15.45%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between VIS and XLI 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 Sep 29, 2004	0.98

The correlation between VIS and XLI has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

VIS vs. XLI - Sectors Allocation Comparison

Sectors	VIS	XLI
Industrials	90.2%	91.2%
Technology	4.2%	3.7%
Utilities	3.8%	4.5%
Consumer Cyclical	1.1%	0.5%
Financial Services	0.2%	-
Energy	0.2%	-
Basic Materials	0.1%	-
Communication Services	0.0%	-
Real Estate	0.0%	-
Healthcare	0.0%	-
Consumer Defensive	-	-

Return for Risk

VIS vs. XLI — Risk / Return Rank

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

VIS

VIS Risk / Return Rank: 50
VIS Sharpe Ratio Rank: 50
VIS Sortino Ratio Rank: 50
VIS Omega Ratio Rank: 46
VIS Calmar Ratio Rank: 49
VIS Martin Ratio Rank: 57

XLI

XLI Risk / Return Rank: 46
XLI Sharpe Ratio Rank: 47
XLI Sortino Ratio Rank: 47
XLI Omega Ratio Rank: 43
XLI Calmar Ratio Rank: 43
XLI Martin Ratio Rank: 50

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.

VIS vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Industrials ETF (VIS) and Industrial Select Sector SPDR Fund (XLI). 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.

	VIS	XLI	Difference
Sharpe ratio: Return per unit of total volatility	1.66	1.57	+0.09
Sortino ratio: Return per unit of downside risk	2.36	2.25	+0.11
Omega ratio: Gain probability vs. loss probability	1.28	1.27	+0.01
Calmar ratio: Return relative to maximum drawdown	2.34	2.09	+0.25
Martin ratio: Return relative to average drawdown	9.68	8.24	+1.44

VIS vs. XLI - Sharpe Ratio Comparison

The current VIS Sharpe Ratio is 1.66, which is comparable to the XLI Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of VIS and XLI, 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

VIS vs. XLI - Drawdown Comparison

The maximum VIS drawdown since its inception was -63.51%, roughly equal to the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for VIS and XLI.

Drawdown Indicators

	VIS	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-63.51%	-62.26%	-1.25%
Max Drawdown (1Y) Largest decline over 1 year	-12.29%	-12.21%	-0.08%
Max Drawdown (3Y) Largest decline over 3 years	-20.80%	-18.49%	-2.31%
Max Drawdown (5Y) Largest decline over 5 years	-22.96%	-21.64%	-1.32%
Max Drawdown (10Y) Largest decline over 10 years	-42.42%	-42.33%	-0.09%
Current Drawdown Current decline from peak	-2.14%	-2.01%	-0.13%
Average Drawdown Average peak-to-trough decline	-8.36%	-9.19%	+0.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.09%	-0.12%

Volatility

VIS vs. XLI - Volatility Comparison

Vanguard Industrials ETF (VIS) has a higher volatility of 6.60% compared to Industrial Select Sector SPDR Fund (XLI) at 6.25%. This indicates that VIS's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIS	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.60%	6.25%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	14.33%	13.67%	+0.66%
Volatility (1Y) Calculated over the trailing 1-year period	17.37%	16.33%	+1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.49%	17.55%	+0.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.46%	20.02%	+0.44%

VIS vs. XLI - Expense Ratio Comparison

VIS has a 0.09% expense ratio, which is higher than XLI'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

VIS vs. XLI - Dividend Comparison

VIS's dividend yield for the trailing twelve months is around 0.87%, less than XLI's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIS Vanguard Industrials ETF	0.87%	1.01%	1.23%	1.36%	1.52%	1.11%	1.38%	1.68%	1.90%	1.60%	1.81%	1.94%
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both VIS and XLI in my portfolio?

With a correlation of 0.99, VIS and XLI 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, VIS or XLI?

VIS has higher volatility (6.60%) compared to XLI (6.25%). In terms of maximum drawdown, VIS dropped -63.51% vs XLI's -62.26%.

Which ETF is better, VIS or XLI?

On 10-year performance, VIS leads with 14.60% vs 14.55% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, XLI has been the lower-risk option at 6.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIS or XLI?

Over the 10-year period, VIS has performed better with a 14.60% return vs 14.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIS or XLI?

XLI is cheaper with a 0.08% expense ratio, compared with 0.09% for VIS.

Which ETF pays a higher dividend yield, VIS or XLI?

XLI has the higher dividend yield at 1.16%, compared with 0.87% for VIS.

What is the main difference between VIS and XLI?

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

Which has better risk-adjusted returns?

VIS currently has the higher Sharpe Ratio (1.66 vs 1.57), 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.