VUG vs. XLY

Last updated Jun 9, 2026

VUG (Vanguard Growth ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap 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, VUG returned 17.95%/yr vs 12.57%/yr for XLY. Their correlation of 0.85 suggests significant overlap in exposure. VUG charges 0.03%/yr vs 0.13%/yr for XLY.

Performance

VUG vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Growth ETF (VUG) 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, VUG achieves a 6.14% return, which is significantly higher than XLY's -3.17% return. Over the past 10 years, VUG has outperformed XLY with an annualized return of 17.95%, while XLY has yielded a comparatively lower 12.57% annualized return.

VUG

• 1D: 0.33%
• 1M: -0.73%
• YTD: 6.14%
• 6M: 5.11%
• 1Y: 23.11%
• 3Y*: 24.71%
• 5Y*: 14.33%
• 10Y*: 17.95%

XLY

• 1D: 0.46%
• 1M: -4.00%
• YTD: -3.17%
• 6M: -1.81%
• 1Y: 9.63%
• 3Y*: 13.63%
• 5Y*: 6.99%
• 10Y*: 12.57%

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

VUG vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VUG Vanguard Growth ETF	6.14%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%
XLY Consumer Discretionary Select Sector SPDR Fund	-3.17%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between VUG and XLY is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.85

The correlation between VUG and XLY shifts across timeframes, from 0.69 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.

VUG vs. XLY - Sectors Allocation Comparison

Sectors	VUG	XLY
Technology	53.5%	0.9%
Communication Services	17.3%	1.3%
Consumer Cyclical	12.2%	97.6%
Healthcare	4.6%	-
Financial Services	4.3%	-
Industrials	3.6%	0.1%
Consumer Defensive	1.5%	-
Real Estate	1.0%	-
Utilities	0.9%	-
Basic Materials	0.6%	-
Energy	0.4%	-

Return for Risk

VUG vs. XLY — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 40
VUG Sharpe Ratio Rank: 45
VUG Sortino Ratio Rank: 43
VUG Omega Ratio Rank: 44
VUG Calmar Ratio Rank: 31
VUG Martin Ratio Rank: 35

XLY

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

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.

VUG vs. XLY - Risk-Adjusted Trends Comparison

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

	VUG	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.43	0.54	+0.90
Sortino ratio: Return per unit of downside risk	1.95	0.87	+1.08
Omega ratio: Gain probability vs. loss probability	1.25	1.10	+0.15
Calmar ratio: Return relative to maximum drawdown	1.40	0.65	+0.76
Martin ratio: Return relative to average drawdown	4.90	2.01	+2.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VUG vs. XLY - Sharpe Ratio Comparison

The current VUG Sharpe Ratio is 1.43, which is higher than the XLY Sharpe Ratio of 0.54. The chart below compares the historical Sharpe Ratios of VUG 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.

Sharpe Ratios by Period

	VUG	XLY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.43	0.54	+0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.65	0.30	+0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.84	0.57	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.42	+0.19

Drawdowns

VUG vs. XLY - Drawdown Comparison

The maximum VUG drawdown since its inception was -50.68%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VUG and XLY.

Drawdown Indicators

	VUG	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-59.05%	+8.37%
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	-14.98%	-1.55%
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	-26.01%	+3.16%
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	-39.67%	+4.06%
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	-39.67%	+4.06%
Current Drawdown Current decline from peak	-4.52%	-7.15%	+2.63%
Average Drawdown Average peak-to-trough decline	-7.09%	-9.56%	+2.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.73%	4.80%	-0.07%

Volatility

VUG vs. XLY - Volatility Comparison

Vanguard Growth ETF (VUG) and Consumer Discretionary Select Sector SPDR Fund (XLY) have volatilities of 5.17% and 5.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VUG	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	5.32%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	12.68%	13.22%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	18.09%	-1.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.28%	23.80%	-1.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	22.06%	-0.58%

VUG vs. XLY - Expense Ratio Comparison

VUG 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

VUG vs. XLY - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.38%, less than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VUG Vanguard Growth ETF	0.38%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%
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 VUG and XLY in my portfolio?

VUG and XLY have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VUG or XLY?

XLY has higher volatility (5.32%) compared to VUG (5.17%). In terms of maximum drawdown, VUG dropped -50.68% vs XLY's -59.05%.

Which ETF is better, VUG or XLY?

On 10-year performance, VUG leads with 17.95% vs 12.57% for XLY. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 5.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VUG or XLY?

Over the 10-year period, VUG has performed better with a 17.95% return vs 12.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VUG or XLY?

VUG is cheaper with a 0.03% expense ratio, compared with 0.13% for XLY.

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

XLY has the higher dividend yield at 0.77%, compared with 0.38% for VUG.

What is the main difference between VUG and XLY?

VUG is categorized as Large Cap Growth Equities, while XLY is Consumer Discretionary Equities. VUG tracks CRSP US Large Cap Growth Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VUG and 0.13% for XLY.

Which has better risk-adjusted returns?

VUG currently has the higher Sharpe Ratio (1.43 vs 0.54), 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.