Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year VYM returned +26.12% while XLF returned +13.87%. Year to date, VYM is up 15.80% versus a gain of 5.77% for XLF.

Over three years, VYM compounded at +18.25% per year against +19.87% for XLF; over five years the annualized figures are +12.51% and +10.61% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +3.69%. Past performance does not guarantee future results.

XLF has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -58.8% for VYM and -83.8% for XLF. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.

VYM charges 0.04% per year while XLF charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 1.51% for XLF.