VDC vs XLP: Yield, Cost and Returns Compared
As of Nov 5, 2026, XLP yields more: 2.39% (dividend yield) against 1.96% for VDC. XLP is cheaper to own at 0.08% a year vs 0.09%. Over the same 18 years (Dec 2007 to Oct 2026), VDC returned 9.4% a year with distributions reinvested, and XLP 9.1%.
| Compared | VDC | XLP |
|---|---|---|
| YieldDividend yield | 1.96% | 2.39% |
| Expense ratio | 0.09% | 0.08% |
| Total return, 1 yr | +19.0% | +20.4% |
| Total return, 3 yr (a year) | +13.2% | +12.6% |
| Total return, 5 yr (a year) | +8.0% | +7.5% |
| Total return, 10 yr (a year) | +8.6% | +8.3% |
| Worst drop since Dec 2007 | -28.6% | -27.6% |
| Share price since Dec 2007 | +242% | +210% |
| Pays | Quarterly | Quarterly |
| Issuer | Vanguard | State Street Investment Management |
| Assets | $9.4B | $15.0B |
| Started | 2004 | 1998 |
| Type | Consumer Defensive | Consumer Defensive |
Higher yield
XLP
2.39%
Lower cost
XLP
0.08%
Better total return
VDC
9.4%/yr
Smaller worst drop
XLP
-27.6%
Key facts: VDC vs XLP
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, VDC yields 1.96% (dividend yield) and XLP yields 2.39% (dividend yield).
- VDC's expense ratio is 0.09% and XLP's is 0.08%: $9 vs $8 a year on $10,000.
- From Dec 2007 to Oct 2026, $10,000 in VDC grew to $54,065 (9.4% a year) and $10,000 in XLP to $51,332 (9.1% a year), distributions reinvested.
- Their worst month-end drops over that time: -28.6% for VDC and -27.6% for XLP.
- 10 of VDC's top ten holdings are also in XLP's top ten, an overlap of at least 55% of the fund.
Cite this page
SmarterDividends, "VDC vs XLP: Yield, Cost and Returns Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/vdc-vs-xlp
$10,000 in each, Dec 2007 to Oct 2026
Distributions reinvested, month-end values, with the S&P 500 for reference.
VDC became
$54,065
9.4% a year
XLP became
$51,332
9.1% a year
Year by year
| Year | VDC | XLP |
|---|---|---|
| 2025 | +2.2% | +1.5% |
| 2024 | +13.3% | +12.2% |
| 2023 | +2.4% | −0.8% |
| 2022 | −1.8% | −0.8% |
| 2021 | +17.6% | +17.2% |
| 2020 | +10.9% | +10.1% |
| 2019 | +26.1% | +27.4% |
| 2018 | −7.8% | −8.1% |
| 2017 | +11.8% | +13.0% |
| 2016 | +6.3% | +5.0% |
| 2015 | +5.8% | +6.8% |
| 2014 | +16.0% | +15.7% |
| 2013 | +28.0% | +26.3% |
| 2012 | +11.0% | +10.7% |
| 2011 | +13.6% | +14.0% |
| 2010 | +14.6% | +13.8% |
| 2009 | +16.6% | +14.3% |
| 2008 | −16.6% | −15.0% |
Total return each calendar year, distributions reinvested.
Top holdings
10 of the top ten overlap, at least 55% of each fund.
VDC
- WMT Walmart Inc13.9%
- COST Costco Wholesale Corp12.1%
- PG Procter & Gamble Co9.9%
- KO Coca-Cola Co9.8%
- PM Philip Morris International Inc4.8%
- PEP PepsiCo Inc4.3%
- MO Altria Group Inc3.9%
- MDLZ Mondelez International Inc Class A2.6%
- TGT Target Corp2.5%
- CL Colgate-Palmolive Co2.3%
XLP
- WMT Walmart Inc11.1%
- COST Costco Wholesale Corp9.1%
- PG Procter & Gamble Co7.6%
- KO Coca-Cola Co7.4%
- PM Philip Morris International Inc6.6%
- MO Altria Group Inc4.7%
- CL Colgate-Palmolive Co4.4%
- MDLZ Mondelez International Inc Class A4.3%
- PEP PepsiCo Inc4.1%
- TGT Target Corp4.0%
VDC vs XLP: questions
Is VDC or XLP better?
It depends on the job. XLP pays more today (2.39% vs 1.96%), XLP costs less, and VDC has the better total return over Dec 2007 to Oct 2026, with XLP holding up better in its worst stretch. For income, look at yield and whether the payouts hold up; for growth, total return and drawdowns.
Which pays a higher dividend, VDC or XLP?
XLP, at 2.39% against 1.96% for VDC as of Nov 5, 2026. On $10,000 that's about $239 vs $196 a year at today's rates.
Which has the better total return?
VDC. From Dec 2007 to Oct 2026, it returned 9.4% a year with distributions reinvested, against 9.1% for XLP. $10,000 became $54,065 vs $51,332.
Which is cheaper, VDC or XLP?
XLP, with a 0.08% expense ratio against 0.09%.
Do VDC and XLP hold the same things?
Partly. 10 of their top ten holdings match (WMT, COST, PG, KO), at least 55% of each fund. Owning both doubles up on those.
Yields, costs and holdings as each fund reports them (via Yahoo Finance), updated daily; returns from month-end prices with distributions reinvested. For information only, not investment advice. Last fund data: Nov 5, 2026.