XLY vs. VCR

Last updated Jun 5, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) and VCR (Vanguard Consumer Discretionary ETF) are both Consumer Discretionary Equities funds - XLY tracks the Consumer Discretionary Select Sector Index while VCR tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index. Both are passively managed. Over the past 10 years, XLY returned 12.63%/yr vs 13.48%/yr for VCR. With a 0.97 correlation, they move nearly in lockstep. XLY charges 0.13%/yr vs 0.10%/yr for VCR.

Performance

XLY vs. VCR - Performance Comparison

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

Returns By Period

In the year-to-date period, XLY achieves a -1.60% return, which is significantly lower than VCR's -0.48% return. Over the past 10 years, XLY has underperformed VCR with an annualized return of 12.63%, while VCR has yielded a comparatively higher 13.48% annualized return.

XLY

• 1D: 0.45%
• 1M: -0.69%
• YTD: -1.60%
• 6M: -1.13%
• 1Y: 10.01%
• 3Y*: 15.13%
• 5Y*: 7.39%
• 10Y*: 12.63%

VCR

• 1D: 0.30%
• 1M: -0.23%
• YTD: -0.48%
• 6M: -0.23%
• 1Y: 10.34%
• 3Y*: 15.07%
• 5Y*: 6.23%
• 10Y*: 13.48%

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

XLY vs. VCR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLY Consumer Discretionary Select Sector SPDR Fund	-1.60%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%
VCR Vanguard Consumer Discretionary ETF	-0.48%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%

Correlation

The correlation between XLY and VCR is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.97

The correlation between XLY and VCR has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.

Return for Risk

XLY vs. VCR — Risk / Return Rank

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

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: 20

VCR

VCR Risk / Return Rank: 19
VCR Sharpe Ratio Rank: 19
VCR Sortino Ratio Rank: 19
VCR Omega Ratio Rank: 19
VCR Calmar Ratio Rank: 18
VCR 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.

XLY vs. VCR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and Vanguard Consumer Discretionary ETF (VCR). 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.

	XLY	VCR	Difference
Sharpe ratio: Return per unit of total volatility	0.55	0.56	-0.01
Sortino ratio: Return per unit of downside risk	0.89	0.91	-0.02
Omega ratio: Gain probability vs. loss probability	1.10	1.11	0.00
Calmar ratio: Return relative to maximum drawdown	0.67	0.67	0.00
Martin ratio: Return relative to average drawdown	2.11	2.08	+0.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLY vs. VCR - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.55, which is comparable to the VCR Sharpe Ratio of 0.56. The chart below compares the historical Sharpe Ratios of XLY and VCR, 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

	XLY	VCR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.55	0.56	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	0.26	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.60	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.51	-0.08

Drawdowns

XLY vs. VCR - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, roughly equal to the maximum VCR drawdown of -61.54%. Use the drawdown chart below to compare losses from any high point for XLY and VCR.

Drawdown Indicators

	XLY	VCR	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-61.54%	+2.49%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-15.59%	+0.61%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-27.36%	+1.35%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-39.20%	-0.47%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	-39.20%	-0.47%
Current Drawdown Current decline from peak	-5.64%	-5.00%	-0.64%
Average Drawdown Average peak-to-trough decline	-9.56%	-9.40%	-0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.76%	4.98%	-0.22%

Volatility

XLY vs. VCR - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) and Vanguard Consumer Discretionary ETF (VCR) have volatilities of 5.17% and 5.17%, 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

	XLY	VCR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	5.17%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	13.10%	13.09%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	18.16%	18.47%	-0.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.78%	23.98%	-0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.05%	22.40%	-0.35%

XLY vs. VCR - Expense Ratio Comparison

XLY has a 0.13% expense ratio, which is higher than VCR'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%.

Dividends

XLY vs. VCR - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.76%, more than VCR's 0.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VCR Vanguard Consumer Discretionary ETF	0.73%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%
XLY Consumer Discretionary Select Sector SPDR Fund	0.76%	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 XLY and VCR in my portfolio?

With a correlation of 0.99, XLY and VCR move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLY or VCR?

VCR has higher volatility (5.17%) compared to XLY (5.17%). In terms of maximum drawdown, XLY dropped -59.05% vs VCR's -61.54%.

Which ETF is better, XLY or VCR?

On 10-year performance, VCR leads with 13.48% vs 12.63% for XLY. On fees, VCR is cheaper at 0.10% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLY or VCR?

Over the 10-year period, VCR has performed better with a 13.48% return vs 12.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLY or VCR?

VCR is cheaper with a 0.10% expense ratio, compared with 0.13% for XLY.

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

XLY has the higher dividend yield at 0.76%, compared with 0.73% for VCR.

What is the main difference between XLY and VCR?

XLY tracks Consumer Discretionary Select Sector Index, while VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.13% for XLY and 0.10% for VCR.

Which has better risk-adjusted returns?

VCR currently has the higher Sharpe Ratio (0.56 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.