XLI vs. VOO

Last updated Jun 7, 2026

XLI (Industrial Select Sector SPDR Fund) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLI returned 13.83%/yr vs 15.23%/yr for VOO. Their correlation of 0.84 suggests significant overlap in exposure. XLI charges 0.08%/yr vs 0.03%/yr for VOO.

Performance

XLI vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLI achieves a 12.60% return, which is significantly higher than VOO's 8.45% return. Over the past 10 years, XLI has underperformed VOO with an annualized return of 13.83%, while VOO has yielded a comparatively higher 15.23% annualized return.

XLI

• 1D: -1.12%
• 1M: 0.57%
• YTD: 12.60%
• 6M: 13.38%
• 1Y: 21.80%
• 3Y*: 21.77%
• 5Y*: 12.28%
• 10Y*: 13.83%

VOO

• 1D: -2.59%
• 1M: -0.01%
• YTD: 8.45%
• 6M: 8.18%
• 1Y: 24.60%
• 3Y*: 21.52%
• 5Y*: 13.39%
• 10Y*: 15.23%

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

XLI vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLI Industrial Select Sector SPDR Fund	12.60%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%
VOO Vanguard S&P 500 ETF	8.45%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between XLI and VOO is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Sep 10, 2010	0.84

The correlation between XLI and VOO shifts across timeframes, from 0.68 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

XLI vs. VOO - Sectors Allocation Comparison

Sectors	XLI	VOO
Industrials	90.7%	8.3%
Utilities	4.8%	2.4%
Technology	4.0%	35.7%
Consumer Cyclical	0.5%	10.2%
Basic Materials	-	1.8%
Communication Services	-	11.3%
Consumer Defensive	-	4.9%
Energy	-	3.5%
Financial Services	-	11.6%
Healthcare	-	8.5%
Real Estate	-	1.9%

Return for Risk

XLI vs. VOO — Risk / Return Rank

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

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 44
XLI Sortino Ratio Rank: 44
XLI Omega Ratio Rank: 40
XLI Calmar Ratio Rank: 39
XLI Martin Ratio Rank: 46

VOO

VOO Risk / Return Rank: 66
VOO Sharpe Ratio Rank: 67
VOO Sortino Ratio Rank: 63
VOO Omega Ratio Rank: 66
VOO Calmar Ratio Rank: 60
VOO Martin Ratio Rank: 73

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.

XLI vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Vanguard S&P 500 ETF (VOO). 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.

	XLI	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.48	2.15	-0.67
Sortino ratio: Return per unit of downside risk	2.18	2.89	-0.71
Omega ratio: Gain probability vs. loss probability	1.26	1.39	-0.14
Calmar ratio: Return relative to maximum drawdown	1.88	2.92	-1.04
Martin ratio: Return relative to average drawdown	7.44	13.53	-6.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLI vs. VOO - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.48, which is lower than the VOO Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of XLI and VOO, 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

	XLI	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.48	2.15	-0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.80	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	0.85	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.88	-0.42

Drawdowns

XLI vs. VOO - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for XLI and VOO.

Drawdown Indicators

	XLI	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-33.99%	-28.27%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-8.90%	-3.31%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-18.69%	+0.20%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-24.52%	+2.88%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-33.99%	-8.34%
Current Drawdown Current decline from peak	-2.36%	-2.90%	+0.54%
Average Drawdown Average peak-to-trough decline	-9.20%	-3.69%	-5.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	1.92%	+1.16%

Volatility

XLI vs. VOO - Volatility Comparison

Industrial Select Sector SPDR Fund (XLI) has a higher volatility of 4.29% compared to Vanguard S&P 500 ETF (VOO) at 3.74%. This indicates that XLI's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.29%	3.74%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	12.84%	9.30%	+3.54%
Volatility (1Y) Calculated over the trailing 1-year period	15.45%	12.10%	+3.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.43%	16.84%	+0.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.99%	18.02%	+1.97%

XLI vs. VOO - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is higher than VOO's 0.03% 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

XLI vs. VOO - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.17%, more than VOO's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%
XLI Industrial Select Sector SPDR Fund	1.17%	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 XLI and VOO in my portfolio?

XLI and VOO have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLI or VOO?

XLI has higher volatility (4.29%) compared to VOO (3.74%). In terms of maximum drawdown, XLI dropped -62.26% vs VOO's -33.99%.

Which ETF is better, XLI or VOO?

On 10-year performance, VOO leads with 15.23% vs 13.83% for XLI. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLI or VOO?

Over the 10-year period, VOO has performed better with a 15.23% return vs 13.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.08% for XLI.

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

XLI has the higher dividend yield at 1.17%, compared with 1.05% for VOO.

What is the main difference between XLI and VOO?

XLI is categorized as Industrials Equities, while VOO is S&P 500. XLI tracks Industrial Select Sector Index, while VOO tracks S&P 500 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLI and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (2.15 vs 1.48), 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.