A head-to-head comparison of Vanguard Consumer Discretionary ETF and Consumer Discretionary Select Sector SPDR Fund covering yield, cost, risk, and income potential.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.
See our curated list of related YouTube videos on VCR.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.
See our curated list of related YouTube videos on XLY.
MSCI US Investable Market Consumer Discretionary 25/50 Index
Consumer Discretionary Select Sector Index
Objective
Tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index.
Tracks the Consumer Discretionary Select Sector Index from the S&P 500.
Asset class
Equity
Equity
Inception date
01/26/2004
12/16/1998
Beta
1.2
1.13
Last dividend
$0.7070
$0.2330
Ex-dividend date
06/24/2026
09/21/2026
Bottom lineVCR and XLY are nearly interchangeable — both offer very similar exposure with very similar cost and risk. The clearest tie-breaker is cost: XLY is cheaper at 0.09% vs 0.10%.
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Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
VCR has outpaced XLY over the trailing twelve months, posting a 6.57% total return against 5.11%. The lead holds up over 10 years too: VCR has compounded at 13.25% a year, against 12.24% for XLY. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Quick verdict
VCR (Vanguard Consumer Discretionary ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both quarterly-pay dividend ETFs, but they take different approaches.
XLY offers the higher yield at 0.80% vs 0.72% for VCR. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
XLY is cheaper with an expense ratio of 0.09% compared to 0.10%.
They track different benchmarks: VCR is linked to MSCI US Investable Market Consumer Discretionary 25/50 Index while XLY tracks Consumer Discretionary Select Sector Index, which means their performance drivers differ.
XLY is the larger fund by assets ($22.4B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VCR would generate roughly $6.00/month, while XLY would produce $6.67/month, at current distribution rates. Both pay quarterly distributions.
VCR yield0.72%
XLY yield0.80%
Monthly diff on $10K$0.67
Cost & efficiency
Over 10 years on $10,000, VCR would cost approximately $100 in fees vs $90 for XLY (simplified, not compounded). The $10.00 difference may be offset by yield or performance.
VCR ER0.10%
XLY ER0.09%
Strategy & risk
VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index, while XLY tracks Consumer Discretionary Select Sector Index. Beta is 1.2 for VCR and 1.13 for XLY, indicating XLY is less volatile relative to the market.
VCR beta1.2
XLY beta1.13
Fund details
VCR is managed by Vanguard (launched 01/26/2004) with $6.18B in assets. XLY is managed by State Street (launched 12/16/1998) with $22.4B in assets.
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Frequently asked questions
Is VCR or XLY better for dividend income?
It depends on your goals. XLY currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between VCR and XLY?
VCR (Vanguard Consumer Discretionary ETF) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index, while XLY (Consumer Discretionary Select Sector SPDR Fund) tracks Consumer Discretionary Select Sector Index. They are issued by Vanguard and State Street respectively.
Can I hold both VCR and XLY?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Which has lower fees, VCR or XLY?
VCR has an expense ratio of 0.10% while XLY charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VCR vs XLY generate?
At current rates, $10,000 in VCR would generate roughly $6.00 per month ($72.00 annually). The same in XLY would produce about $6.67 per month ($80.00 annually).
Which has performed better historically, VCR or XLY?
VCR has outpaced XLY over the trailing twelve months, posting a 6.57% total return against 5.11%. The lead holds up over 10 years too: VCR has compounded at 13.25% a year, against 12.24% for XLY. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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