VT vs. XLI

Last updated Jun 14, 2026

VT (Vanguard Total World Stock ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - VT is a Global Equities fund tracking the FTSE Global All Cap Index, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, VT returned 12.93%/yr vs 14.15%/yr for XLI. Their correlation of 0.84 suggests significant overlap in exposure. VT charges 0.06%/yr vs 0.08%/yr for XLI.

Performance

VT vs. XLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Stock ETF (VT) 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, VT achieves a 11.06% return, which is significantly lower than XLI's 13.90% return. Over the past 10 years, VT has underperformed XLI with an annualized return of 12.93%, while XLI has yielded a comparatively higher 14.15% annualized return.

VT

• 1D: 0.44%
• 1M: 0.17%
• YTD: 11.06%
• 6M: 11.82%
• 1Y: 27.43%
• 3Y*: 19.71%
• 5Y*: 10.65%
• 10Y*: 12.93%

XLI

• 1D: 0.59%
• 1M: 0.96%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

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

VT vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VT Vanguard Total World Stock ETF	11.06%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%
XLI Industrial Select Sector SPDR Fund	13.90%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between VT and XLI is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008	0.84

The correlation between VT and XLI shifts across timeframes, from 0.72 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

VT vs. XLI - Sectors Allocation Comparison

Sectors	VT	XLI
Technology	27.8%	3.8%
Financial Services	15.9%	-
Industrials	12.0%	90.9%
Consumer Cyclical	9.5%	0.5%
Communication Services	8.3%	-
Healthcare	8.1%	-
Consumer Defensive	4.8%	-
Energy	4.3%	-
Basic Materials	4.2%	-
Utilities	2.7%	4.8%
Real Estate	2.4%	-

Return for Risk

VT vs. XLI — Risk / Return Rank

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

VT

VT Risk / Return Rank: 68
VT Sharpe Ratio Rank: 69
VT Sortino Ratio Rank: 68
VT Omega Ratio Rank: 69
VT Calmar Ratio Rank: 62
VT Martin Ratio Rank: 72

XLI

XLI Risk / Return Rank: 48
XLI Sharpe Ratio Rank: 49
XLI Sortino Ratio Rank: 50
XLI Omega Ratio Rank: 46
XLI Calmar Ratio Rank: 45
XLI Martin Ratio Rank: 52

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.

VT vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) 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.

	VT	XLI	Difference
Sharpe ratio: Return per unit of total volatility	1.94	1.50	+0.44
Sortino ratio: Return per unit of downside risk	2.67	2.17	+0.50
Omega ratio: Gain probability vs. loss probability	1.35	1.26	+0.09
Calmar ratio: Return relative to maximum drawdown	2.68	1.98	+0.70
Martin ratio: Return relative to average drawdown	11.67	7.82	+3.85

VT vs. XLI - Sharpe Ratio Comparison

The current VT Sharpe Ratio is 1.94, which is comparable to the XLI Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of VT 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

VT vs. XLI - Drawdown Comparison

The maximum VT drawdown since its inception was -50.27%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for VT and XLI.

Drawdown Indicators

	VT	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-62.26%	+11.99%
Max Drawdown (1Y) Largest decline over 1 year	-9.67%	-12.21%	+2.54%
Max Drawdown (3Y) Largest decline over 3 years	-16.51%	-18.49%	+1.98%
Max Drawdown (5Y) Largest decline over 5 years	-26.38%	-21.64%	-4.74%
Max Drawdown (10Y) Largest decline over 10 years	-34.24%	-42.33%	+8.09%
Current Drawdown Current decline from peak	-1.92%	-1.24%	-0.68%
Average Drawdown Average peak-to-trough decline	-7.01%	-9.20%	+2.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	3.09%	-0.87%

Volatility

VT vs. XLI - Volatility Comparison

The current volatility for Vanguard Total World Stock ETF (VT) is 5.26%, while Industrial Select Sector SPDR Fund (XLI) has a volatility of 6.22%. This indicates that VT experiences smaller price fluctuations and is considered to be less risky than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VT	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	6.22%	-0.96%
Volatility (6M) Calculated over the trailing 6-month period	11.01%	13.59%	-2.58%
Volatility (1Y) Calculated over the trailing 1-year period	13.38%	16.17%	-2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.15%	17.55%	-1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	20.04%	-2.77%

VT vs. XLI - Expense Ratio Comparison

VT has a 0.06% expense ratio, which is lower than XLI'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

VT vs. XLI - Dividend Comparison

VT's dividend yield for the trailing twelve months is around 1.61%, more than XLI's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VT Vanguard Total World Stock ETF	1.61%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%
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 VT and XLI in my portfolio?

VT and XLI have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VT or XLI?

XLI has higher volatility (6.22%) compared to VT (5.26%). In terms of maximum drawdown, VT dropped -50.27% vs XLI's -62.26%.

Which ETF is better, VT or XLI?

On 10-year performance, XLI leads with 14.15% vs 12.93% for VT. On fees, VT is cheaper at 0.06% per year. On volatility, VT has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VT or XLI?

Over the 10-year period, XLI has performed better with a 14.15% return vs 12.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VT or XLI?

VT is cheaper with a 0.06% expense ratio, compared with 0.08% for XLI.

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

VT has the higher dividend yield at 1.61%, compared with 1.16% for XLI.

What is the main difference between VT and XLI?

VT is categorized as Global Equities, while XLI is Industrials Equities. VT tracks FTSE Global All Cap Index, while XLI tracks Industrial Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.06% for VT and 0.08% for XLI.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (1.94 vs 1.50), 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.