VONG vs. XLY

Last updated Jun 13, 2026

VONG (Vanguard Russell 1000 Growth ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - VONG is a Large Cap Growth Equities fund tracking the Russell 1000 Growth 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, VONG returned 18.29%/yr vs 12.78%/yr for XLY. Their correlation of 0.85 suggests significant overlap in exposure. VONG charges 0.06%/yr vs 0.13%/yr for XLY.

Performance

VONG vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 1000 Growth ETF (VONG) and Consumer Discretionary Select Sector SPDR Fund (XLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VONG achieves a 2.96% return, which is significantly higher than XLY's -2.16% return. Over the past 10 years, VONG has outperformed XLY with an annualized return of 18.29%, while XLY has yielded a comparatively lower 12.78% annualized return.

VONG

• 1D: 0.10%
• 1M: -3.37%
• YTD: 2.96%
• 6M: 3.46%
• 1Y: 20.50%
• 3Y*: 22.47%
• 5Y*: 14.01%
• 10Y*: 18.29%

XLY

• 1D: 0.26%
• 1M: -1.74%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 11.01%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

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

VONG vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VONG Vanguard Russell 1000 Growth ETF	2.96%	18.45%	33.20%	42.67%	-29.18%	27.60%	38.30%	36.06%	-1.53%	30.05%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.16%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between VONG and XLY is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.85

The correlation between VONG and XLY shifts across timeframes, from 0.67 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.

VONG vs. XLY - Sectors Allocation Comparison

Sectors	VONG	XLY
Technology	51.4%	0.9%
Communication Services	13.2%	1.3%
Consumer Cyclical	13.2%	97.6%
Healthcare	7.1%	-
Industrials	5.7%	0.1%
Financial Services	5.3%	-
Consumer Defensive	2.7%	-
Real Estate	0.4%	-
Energy	0.4%	-
Basic Materials	0.3%	-
Utilities	0.3%	-

Return for Risk

VONG vs. XLY — Risk / Return Rank

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

VONG

VONG Risk / Return Rank: 34
VONG Sharpe Ratio Rank: 38
VONG Sortino Ratio Rank: 36
VONG Omega Ratio Rank: 37
VONG Calmar Ratio Rank: 27
VONG Martin Ratio Rank: 30

XLY

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

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.

VONG vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 1000 Growth ETF (VONG) 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.

	VONG	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.20	0.55	+0.65
Sortino ratio: Return per unit of downside risk	1.67	0.89	+0.78
Omega ratio: Gain probability vs. loss probability	1.21	1.10	+0.11
Calmar ratio: Return relative to maximum drawdown	1.17	0.67	+0.50
Martin ratio: Return relative to average drawdown	3.87	2.05	+1.82

VONG vs. XLY - Sharpe Ratio Comparison

The current VONG Sharpe Ratio is 1.20, which is higher than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of VONG and XLY, 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

VONG vs. XLY - Drawdown Comparison

The maximum VONG drawdown since its inception was -32.72%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VONG and XLY.

Drawdown Indicators

	VONG	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-32.72%	-59.05%	+26.33%
Max Drawdown (1Y) Largest decline over 1 year	-16.23%	-14.98%	-1.25%
Max Drawdown (3Y) Largest decline over 3 years	-23.27%	-26.01%	+2.74%
Max Drawdown (5Y) Largest decline over 5 years	-32.72%	-39.67%	+6.95%
Max Drawdown (10Y) Largest decline over 10 years	-32.72%	-39.67%	+6.95%
Current Drawdown Current decline from peak	-5.52%	-6.17%	+0.65%
Average Drawdown Average peak-to-trough decline	-4.88%	-9.55%	+4.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.91%	4.88%	+0.03%

Volatility

VONG vs. XLY - Volatility Comparison

The current volatility for Vanguard Russell 1000 Growth ETF (VONG) is 5.30%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.19%. This indicates that VONG 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.

Volatility by Period

	VONG	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.30%	6.19%	-0.89%
Volatility (6M) Calculated over the trailing 6-month period	12.35%	13.44%	-1.09%
Volatility (1Y) Calculated over the trailing 1-year period	15.87%	18.27%	-2.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.39%	23.83%	-2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.91%	22.08%	-1.17%

VONG vs. XLY - Expense Ratio Comparison

VONG has a 0.06% 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

VONG vs. XLY - Dividend Comparison

VONG's dividend yield for the trailing twelve months is around 0.44%, less than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VONG Vanguard Russell 1000 Growth ETF	0.44%	0.45%	0.55%	0.71%	0.98%	0.58%	0.77%	1.03%	1.18%	1.19%	1.48%	1.47%
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

Can I hold both VONG and XLY in my portfolio?

VONG and XLY have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VONG or XLY?

XLY has higher volatility (6.19%) compared to VONG (5.30%). In terms of maximum drawdown, VONG dropped -32.72% vs XLY's -59.05%.

Which ETF is better, VONG or XLY?

On 10-year performance, VONG leads with 18.29% vs 12.78% for XLY. On fees, VONG is cheaper at 0.06% per year. On volatility, VONG has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VONG or XLY?

Over the 10-year period, VONG has performed better with a 18.29% return vs 12.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VONG or XLY?

VONG is cheaper with a 0.06% expense ratio, compared with 0.13% for XLY.

Which ETF pays a higher dividend yield, VONG or XLY?

XLY has the higher dividend yield at 0.77%, compared with 0.44% for VONG.

What is the main difference between VONG and XLY?

VONG is categorized as Large Cap Growth Equities, while XLY is Consumer Discretionary Equities. VONG tracks Russell 1000 Growth Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.06% for VONG and 0.13% for XLY.

Which has better risk-adjusted returns?

VONG currently has the higher Sharpe Ratio (1.20 vs 0.55), 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.