XLP vs. VDC
Compare and contrast key facts about Consumer Staples Select Sector SPDR Fund (XLP) and Vanguard Consumer Staples ETF (VDC).
XLP and VDC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLP is a passively managed fund by State Street that tracks the performance of the Consumer Staples Select Sector Index. It was launched on Dec 16, 1998. VDC is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Consumer Staples 25/50 Index. It was launched on Jan 26, 2004. Both XLP and VDC are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLP or VDC.
Key characteristics
| XLP | VDC | |
|---|---|---|
| YTD Return | 6.18% | 6.44% |
| 1Y Return | 1.24% | 3.86% |
| 3Y Return (Ann) | 5.17% | 5.68% |
| 5Y Return (Ann) | 8.88% | 9.46% |
| 10Y Return (Ann) | 8.35% | 8.62% |
| Sharpe Ratio | 0.21 | 0.46 |
| Daily Std Dev | 10.47% | 10.40% |
| Max Drawdown | -35.89% | -34.24% |
| Current Drawdown | -0.58% | -0.86% |
Correlation
The correlation between XLP and VDC is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLP vs. VDC - Performance Comparison
The year-to-date returns for both investments are quite close, with XLP having a 6.18% return and VDC slightly higher at 6.44%. Both investments have delivered pretty close results over the past 10 years, with XLP having a 8.35% annualized return and VDC not far ahead at 8.62%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLP vs. VDC - Expense Ratio Comparison
XLP has a 0.13% expense ratio, which is higher than VDC's 0.10% 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%.
Risk-Adjusted Performance
XLP vs. VDC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Staples Select Sector SPDR Fund (XLP) and Vanguard Consumer Staples ETF (VDC). 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.
Dividends
XLP vs. VDC - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.77%, more than VDC's 2.51% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLP Consumer Staples Select Sector SPDR Fund | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% | 2.40% | 2.39% |
VDC Vanguard Consumer Staples ETF | 2.51% | 2.65% | 2.37% | 2.14% | 2.50% | 2.44% | 2.78% | 2.52% | 2.39% | 2.55% | 1.93% | 2.21% |
Drawdowns
XLP vs. VDC - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.89%, roughly equal to the maximum VDC drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for XLP and VDC. For additional features, visit the drawdowns tool.
Volatility
XLP vs. VDC - Volatility Comparison
The current volatility for Consumer Staples Select Sector SPDR Fund (XLP) is 2.48%, while Vanguard Consumer Staples ETF (VDC) has a volatility of 2.65%. This indicates that XLP experiences smaller price fluctuations and is considered to be less risky than VDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.