Dividend comparison
XLP vs VDC: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Consumer Staples Select Sector SPDR ETF and Vanguard Consumer Staples ETF, side by side. Updated October 21, 2026.
XLP vs VDC: key differences
The short answer, from the latest data on this page.
- Fees. XLP is cheaper at 0.08% a year versus 0.09% for VDC. On $10,000 that is $1 a year less in fees.
- Income. XLP pays more income, yielding 2.50% over the last twelve months versus 2.05% for VDC. That is about $45 more a year on $10,000. XLP pays quarterly, VDC pays annual.
- Performance. Over the last 5 years, VDC returned 42.1% versus 37.6% for XLP, with dividends reinvested. $10,000 would have grown to $14,211 in VDC and $13,765 in XLP.
- Risk. Their worst declines over the last 5 years were similar: -16.3% for XLP and -16.5% for VDC from peak to trough.
- Diversification. VDC holds 103 positions and XLP holds 35. The ten largest positions make up 63.1% of XLP and 66.0% of VDC.
- Overlap. 76% of the two portfolios overlap by weight, across 34 shared holdings. Owning both adds little diversification.
- Dividend growth. XLP grew its yearly payout 5.1% a year over the last 4 years, versus 2.8% for VDC.
Bottom line: XLP fits better if you care most about more income today and faster dividend growth. VDC fits better if you care most about stronger 5-year returns and broader diversification. With 76% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLP State Street Consumer Staples Select Sector SPDR ETF | VDC Vanguard Consumer Staples ETF |
|---|---|---|
| Dividend yield (TTM) | 2.50% | 2.05% |
| Dividend / share (TTM) | $2.20 | $4.88 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $0.5406 on Sep 23, 2026 | $1.2112 on Sep 25, 2026 |
| Ex-dividend date | Sep 21, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 5.1% over 4 yrs | 2.8% over 4 yrs |
| Price | $87.75 | $237.63 |
| Beta | 0.48 | 0.50 |
| Max drawdown (5Y) | -16.3% | -16.5% |
| Market cap | $14.71B | $8.69B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.08% | 0.09% |
| Assets under management | $14.72B | $8.70B |
| Number of holdings | 35 | 103 |
| Top 10 concentration | 63.1% | 66.0% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLP
$20.86/mo
$250 /yr at 2.50% yield
VDC
$17.12/mo
$205 /yr at 2.05% yield
Dividend history
Total dividends paid per share in each calendar year. XLP pays quarterly; VDC pays annual.
| Year | XLP | VDC |
|---|---|---|
| 2025 | $2.1388 | $4.7704 |
| 2024 | $2.1755 | $4.9293 |
| 2023 | $1.8924 | $5.0536 |
| 2022 | $1.8413 | $4.5381 |
| 2021 | $1.7543 | $4.2784 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $13,765 in XLP and $14,211 in VDC.
| Period | XLP | VDC |
|---|---|---|
| 1 month | 5.98% | 6.30% |
| 3 months | 3.01% | 3.17% |
| Year to date | 12.96% | 12.49% |
| 1 year | 10.16% | 9.41% |
| 3 years | 37.71% | 40.26% |
| 5 years | 37.65% | 42.11% |
- XLP
- VDC
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- XLP
- VDC
XLP vs VDC holdings overlap
76% overlap by weight, with 34 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | XLP weight | VDC weight |
|---|---|---|
| WMTWALMART INC | 10.97% | 13.86% |
| COSTCOSTCO WHOLESALE CORP | 9.15% | 12.12% |
| PGPROCTER + GAMBLE CO/THE | 7.60% | 9.90% |
| KOCOCA COLA CO/THE | 7.50% | 9.80% |
| PMPHILIP MORRIS INTERNATIONAL | 6.50% | 4.83% |
| PEPPEPSICO INC | 4.09% | 4.28% |
| MOALTRIA GROUP INC | 4.57% | 3.86% |
| MDLZMONDELEZ INTERNATIONAL INC A | 4.25% | 2.58% |
| TGTTARGET CORP | 4.07% | 2.50% |
| CLCOLGATE PALMOLIVE CO | 4.41% | 2.28% |
Top 10 holdings
Largest positions by portfolio weight.
XLP35 holdings total
Quick verdict
XLP fits better if you care most about more income today and faster dividend growth. VDC fits better if you care most about stronger 5-year returns and broader diversification. With 76% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is XLP or VDC better for dividend income?
It depends on your goals. XLP currently yields 2.50% Trailing Twelve Months (TTM) while VDC yields 2.05%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between XLP and VDC?
State Street Consumer Staples Select Sector SPDR ETF (XLP) is an ETF listed on AMEX. Vanguard Consumer Staples ETF (VDC) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, XLP or VDC?
XLP has the lower expense ratio. XLP charges 0.08% a year and VDC charges 0.09%, a difference of $1 a year on a $10,000 investment.
Which has performed better, XLP or VDC?
Over the last 5 years, VDC has the higher total return with dividends reinvested: XLP returned 37.6% and VDC returned 42.1%. Past performance does not predict future returns.
Which is riskier, XLP or VDC?
Measured by the worst peak-to-trough decline over the last five years, VDC has been riskier: XLP fell as much as 16.3% and VDC as much as 16.5%. Their betas are 0.48 and 0.50.
How much do XLP and VDC overlap?
About 76% of the two portfolios overlap by weight, across 34 shared holdings. The largest shared positions are WMT, COST, PG. Holding both adds little diversification.
How often do XLP and VDC pay dividends?
XLP pays quarterly and VDC pays annual.
How much income does $10,000 in XLP vs VDC generate?
At current TTM yields, $10,000 in XLP would generate roughly $20.86 per month ($250 annually). The same amount in VDC would produce about $17.12 per month ($205 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both XLP and VDC?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare XLP vs VDC with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLP and VDC fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.