XSW vs. VOO

Last updated Aug 4, 2026

XSW (SPDR S&P Software & Services ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - XSW is a Technology Equities fund tracking the S&P Software & Services Select Industry Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XSW returned 13.58%/yr vs 15.17%/yr for VOO. Their 0.73 correlation means they have sometimes moved together and sometimes differently. XSW charges 0.35%/yr vs 0.03%/yr for VOO.

Performance

XSW vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) 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, XSW achieves a 0.50% return, which is significantly lower than VOO's 11.72% return. Over the past 10 years, XSW has underperformed VOO with an annualized return of 13.58%, while VOO has yielded a comparatively higher 15.17% annualized return.

XSW

• 1D: 2.92%
• 1M: 6.59%
• 6M: 13.29%
• YTD: 0.50%
• 1Y: 3.92%
• 3Y*: 11.57%
• 5Y*: 1.99%
• 10Y*: 13.58%
• ALL TIME*: 15.19%

VOO

• 1D: 1.42%
• 1M: 1.69%
• 6M: 9.53%
• YTD: 11.72%
• 1Y: 23.30%
• 3Y*: 20.85%
• 5Y*: 13.12%
• 10Y*: 15.17%
• ALL TIME*: 14.88%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VOO Vanguard S&P 500 ETF	$3.97B	$3.80B	$5.49B
XSW SPDR S&P Software & Services ETF	$9.09M	$8.80M	$9.91M

XSW vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSW SPDR S&P Software & Services ETF	0.50%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%
VOO Vanguard S&P 500 ETF	11.72%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between XSW and VOO is 0.52, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.52
Correlation (3Y) Balances recent behavior with more history.	0.69
Correlation (5Y) Shows whether the relationship held over a longer period.	0.76
Correlation (10Y) Provides a long-term view across more market conditions.	0.75
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.73

Over the past year, the correlation between XSW and VOO has dropped to 0.52 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.

XSW vs. VOO - Sectors Allocation Comparison

Sectors	XSW	VOO
Technology	87.3%	38.6%
Financial Services	7.1%	11.4%
Communication Services	3.3%	9.9%
Consumer Cyclical	0.8%	9.5%
Healthcare	0.8%	8.9%
Industrials	0.7%	8.5%
Basic Materials	-	1.7%
Consumer Defensive	-	4.5%
Energy	-	3.0%
Real Estate	-	1.8%
Utilities	-	2.2%

Return for Risk

XSW vs. VOO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XSW

XSW Risk / Return Rank: 14
XSW Sharpe Ratio Rank: 14
XSW Sortino Ratio Rank: 15
XSW Omega Ratio Rank: 15
XSW Calmar Ratio Rank: 13
XSW Martin Ratio Rank: 13

VOO

VOO Risk / Return Rank: 78
VOO Sharpe Ratio Rank: 79
VOO Sortino Ratio Rank: 77
VOO Omega Ratio Rank: 78
VOO Calmar Ratio Rank: 74
VOO Martin Ratio Rank: 83

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XSW vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) 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.

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.

	XSW	VOO	Difference
Sharpe ratio: Return per unit of total volatility	0.13	1.83	-1.70
Sortino ratio: Return per unit of downside risk	0.39	2.53	-2.14
Omega ratio: Gain probability vs. loss probability	1.05	1.33	-0.28
Calmar ratio: Return relative to maximum drawdown	0.12	2.63	-2.51
Martin ratio: Return relative to average drawdown	0.23	11.23	-11.00

XSW vs. VOO - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is 0.13, which is lower than the VOO Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of XSW 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.

Drawdowns

XSW vs. VOO - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for XSW and VOO.

Drawdown Indicators

	XSW	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-33.99%	-11.39%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-8.90%	-24.85%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-18.69%	-15.06%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-24.52%	-20.86%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	-33.99%	-11.39%
Current Drawdown Current decline from peak	-8.36%	0.00%	-8.36%
Average Drawdown Average peak-to-trough decline	-9.90%	-3.67%	-6.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.93%	2.08%	+14.85%

Volatility

XSW vs. VOO - Volatility Comparison

SPDR S&P Software & Services ETF (XSW) has a higher volatility of 8.47% compared to Vanguard S&P 500 ETF (VOO) at 3.81%. This indicates that XSW'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

	XSW	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.47%	3.81%	+4.66%
Volatility (6M) Calculated over the trailing 6-month period	24.82%	10.18%	+14.64%
Volatility (1Y) Calculated over the trailing 1-year period	29.76%	12.80%	+16.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.19%	16.95%	+12.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.39%	18.02%	+8.37%

XSW vs. VOO - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is higher than VOO's 0.03% expense ratio.

Dividends

XSW vs. VOO - Dividend Comparison

XSW has not paid dividends to shareholders, while VOO's dividend yield for the trailing twelve months is around 1.05%.

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%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and VOO in my portfolio?

XSW and VOO have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSW or VOO?

XSW has higher volatility (8.47%) compared to VOO (3.81%). In terms of maximum drawdown, XSW dropped -45.38% vs VOO's -33.99%.

Which ETF is better, XSW or VOO?

On 10-year performance, VOO leads with 15.17% vs 13.58% for XSW. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 3.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or VOO?

Over the 10-year period, VOO has performed better with a 15.17% return vs 13.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.35% for XSW.

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

VOO has the higher dividend yield at 1.05%, compared with 0.00% for XSW.

What is the main difference between XSW and VOO?

XSW is categorized as Technology Equities, while VOO is S&P 500. XSW tracks S&P Software & Services Select Industry Index, while VOO tracks S&P 500 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.35% for XSW and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (1.83 vs 0.13), 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.