VLU vs. VLUE

Last updated Jun 24, 2026

VLU (SPDR S&P 1500 Value Tilt ETF) and VLUE (iShares MSCI USA Value Factor ETF) are both Large Cap Value Equities funds - VLU tracks the S&P 1500 Low Valuation Tilt Index while VLUE tracks the MSCI USA Enhanced Value Index. Both are passively managed. Over the past 10 years, VLU returned 14.20%/yr vs 15.56%/yr for VLUE. A 0.76 correlation means they provide meaningful diversification when combined. VLU charges 0.12%/yr vs 0.15%/yr for VLUE.

Performance

VLU vs. VLUE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P 1500 Value Tilt ETF (VLU) and iShares MSCI USA Value Factor ETF (VLUE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VLU achieves a 13.07% return, which is significantly lower than VLUE's 45.30% return. Over the past 10 years, VLU has underperformed VLUE with an annualized return of 14.20%, while VLUE has yielded a comparatively higher 15.56% annualized return.

VLU

• 1D: -0.12%
• 1M: 0.59%
• YTD: 13.07%
• 6M: 12.43%
• 1Y: 27.85%
• 3Y*: 20.19%
• 5Y*: 12.35%
• 10Y*: 14.20%

VLUE

• 1D: -3.46%
• 1M: 5.59%
• YTD: 45.30%
• 6M: 44.72%
• 1Y: 81.73%
• 3Y*: 32.50%
• 5Y*: 16.52%
• 10Y*: 15.56%

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

VLU vs. VLUE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLU SPDR S&P 1500 Value Tilt ETF	13.07%	16.70%	17.24%	17.18%	-8.24%	30.95%	9.91%	26.20%	-7.89%	18.16%
VLUE iShares MSCI USA Value Factor ETF	45.30%	32.67%	7.25%	14.26%	-14.17%	28.93%	-0.23%	27.20%	-11.13%	21.95%

Correlation

The correlation between VLU and VLUE is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Apr 18, 2013	0.76

The correlation between VLU and VLUE shifts across timeframes, from 0.76 (all time) to 0.93 (5 years), reflecting how their relationship changes across market environments.

VLU vs. VLUE - Sectors Allocation Comparison

Sectors	VLU	VLUE
Technology	19.1%	40.7%
Financial Services	18.4%	10.5%
Healthcare	11.5%	7.9%
Consumer Cyclical	10.7%	10.1%
Communication Services	8.8%	9.5%
Industrials	8.3%	8.0%
Consumer Defensive	7.1%	4.4%
Energy	6.6%	3.5%
Utilities	3.5%	2.0%
Real Estate	3.4%	1.8%
Basic Materials	2.6%	1.3%

Return for Risk

VLU vs. VLUE — Risk / Return Rank

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

VLU

VLU Risk / Return Rank: 84
VLU Sharpe Ratio Rank: 84
VLU Sortino Ratio Rank: 84
VLU Omega Ratio Rank: 82
VLU Calmar Ratio Rank: 84
VLU Martin Ratio Rank: 86

VLUE

VLUE Risk / Return Rank: 96
VLUE Sharpe Ratio Rank: 97
VLUE Sortino Ratio Rank: 96
VLUE Omega Ratio Rank: 95
VLUE Calmar Ratio Rank: 96
VLUE Martin Ratio Rank: 97

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.

VLU vs. VLUE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P 1500 Value Tilt ETF (VLU) and iShares MSCI USA Value Factor ETF (VLUE). 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.

	VLU	VLUE	Difference
Sharpe ratio: Return per unit of total volatility	2.55	4.31	-1.76
Sortino ratio: Return per unit of downside risk	3.55	5.37	-1.82
Omega ratio: Gain probability vs. loss probability	1.47	1.73	-0.26
Calmar ratio: Return relative to maximum drawdown	4.41	9.09	-4.68
Martin ratio: Return relative to average drawdown	17.56	38.03	-20.47

VLU vs. VLUE - Sharpe Ratio Comparison

The current VLU Sharpe Ratio is 2.55, which is lower than the VLUE Sharpe Ratio of 4.31. The chart below compares the historical Sharpe Ratios of VLU and VLUE, 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

VLU vs. VLUE - Drawdown Comparison

The maximum VLU drawdown since its inception was -37.39%, smaller than the maximum VLUE drawdown of -39.47%. Use the drawdown chart below to compare losses from any high point for VLU and VLUE.

Drawdown Indicators

	VLU	VLUE	Difference
Max Drawdown Largest peak-to-trough decline	-37.39%	-39.47%	+2.08%
Max Drawdown (1Y) Largest decline over 1 year	-6.34%	-9.04%	+2.70%
Max Drawdown (3Y) Largest decline over 3 years	-16.22%	-17.89%	+1.67%
Max Drawdown (5Y) Largest decline over 5 years	-19.55%	-27.12%	+7.57%
Max Drawdown (10Y) Largest decline over 10 years	-37.39%	-39.47%	+2.08%
Current Drawdown Current decline from peak	-1.37%	-3.46%	+2.09%
Average Drawdown Average peak-to-trough decline	-3.73%	-6.00%	+2.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.59%	2.16%	-0.57%

Volatility

VLU vs. VLUE - Volatility Comparison

The current volatility for SPDR S&P 1500 Value Tilt ETF (VLU) is 2.94%, while iShares MSCI USA Value Factor ETF (VLUE) has a volatility of 9.76%. This indicates that VLU experiences smaller price fluctuations and is considered to be less risky than VLUE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VLU	VLUE	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.94%	9.76%	-6.82%
Volatility (6M) Calculated over the trailing 6-month period	7.90%	16.13%	-8.23%
Volatility (1Y) Calculated over the trailing 1-year period	10.98%	19.07%	-8.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.39%	18.12%	-2.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	19.95%	-1.89%

VLU vs. VLUE - Expense Ratio Comparison

VLU has a 0.12% expense ratio, which is lower than VLUE's 0.15% 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

VLU vs. VLUE - Dividend Comparison

VLU's dividend yield for the trailing twelve months is around 1.64%, more than VLUE's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VLU SPDR S&P 1500 Value Tilt ETF	1.64%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%
VLUE iShares MSCI USA Value Factor ETF	1.42%	2.11%	2.73%	2.66%	3.18%	2.22%	2.42%	2.61%	2.70%	2.14%	2.07%	2.39%

Frequently Asked Questions

Can I hold both VLU and VLUE in my portfolio?

VLU and VLUE have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VLU or VLUE?

VLUE has higher volatility (9.76%) compared to VLU (2.94%). In terms of maximum drawdown, VLU dropped -37.39% vs VLUE's -39.47%.

Which ETF is better, VLU or VLUE?

On 10-year performance, VLUE leads with 15.56% vs 14.20% for VLU. On fees, VLU is cheaper at 0.12% per year. On volatility, VLU has been the lower-risk option at 2.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VLU or VLUE?

Over the 10-year period, VLUE has performed better with a 15.56% return vs 14.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLU or VLUE?

VLU is cheaper with a 0.12% expense ratio, compared with 0.15% for VLUE.

Which ETF pays a higher dividend yield, VLU or VLUE?

VLU has the higher dividend yield at 1.64%, compared with 1.42% for VLUE.

What is the main difference between VLU and VLUE?

VLU tracks S&P 1500 Low Valuation Tilt Index, while VLUE tracks MSCI USA Enhanced Value Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.12% for VLU and 0.15% for VLUE.

Which has better risk-adjusted returns?

VLUE currently has the higher Sharpe Ratio (4.31 vs 2.55), 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.