⚖️ XLI vs VIS Comparison · Free & No Signup

XLI vs VIS: Industrial Sector ETFs — Similar Holdings, Slightly Different Breadth

XLI holds 78 S&P 500 industrial companies. VIS holds 345+ including mid-cap manufacturers and defense contractors. Both are extremely cheap and track US economic output.

💰 XLI is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
VIS Has More Coverage — XLI Is the Default for Tactical Traders

XLI (Industrial Select Sector SPDR) and VIS (Vanguard Industrials ETF) are both cheap US industrials ETFs with overlapping top holdings. XLI holds 78 S&P 500 industrials — GE Aerospace, Caterpillar, RTX (Raytheon), Honeywell, and Union Pacific are typical top positions. VIS holds 345+ industrials including mid-cap manufacturers, transportation companies, and defense contractors not in the S&P 500. Both charge essentially nothing: XLI 0.09%, VIS 0.10%. Industrials are a cyclical sector closely tied to economic growth — they outperform in expansions and lag in contractions. XLI's large AUM ($18B) and high trading volume make it the preferred institutional vehicle. VIS's broader index gives more mid-cap exposure. For long-term sector investing, either works — VIS has a slight breadth advantage.

📋 Quick Takeaways
🏭XLI holds 78 S&P 500 industrials; VIS holds 345+ — more mid-cap manufacturing and defense exposure in VIS
💰XLI 0.09% vs VIS 0.10% — effectively identical fee; cyclical sector ETFs ideal as portfolio complements
📈Industrials are cyclical — they outperform in economic expansions but fall harder in recessions than defensive sectors
📊 Data-Based Take: VIS has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice
XLI
State Street Industrial Select Sector SPDR ETF
Expense Ratio
0.09% ✓
1-Year Return
+20.5%
AUM
$34.0B
Holdings
78
VIS
Vanguard Industrials Index Fund ETF Shares
Expense Ratio
0.10%
1-Year Return
+22.0%
AUM
$9.0B
Holdings
345

📋 XLI vs VIS — Key Facts Side by Side

Metric XLI VIS
Fund Name State Street Industrial Select Sector SPDR ETF Vanguard Industrials Index Fund ETF Shares
Issuer State Street Vanguard
Tracks Index Industrial Select Sector Index MSCI US IMI Industrials 25/50
Expense Ratio 0.09% ✓ 0.10%
Cost per $10K/yr $9.00 $10.00
AUM $34.0B $9.0B
Holdings 78 345
Inception 1998 2004
1-Year Return +20.47% +21.99%
3-Year Return +21.20% +20.84%
5-Year Return +13.54% +13.58%
Dividend Yield 1.11% 0.86%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.01%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 XLI vs VIS — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
XLI
  • want the lowest fees: saves ~$1/yr per $10K vs VIS
  • already use State Street and prefer staying within one fund family
Often fits investors who...
VIS
  • want broader diversification (345 holdings vs 78)
  • already use Vanguard and prefer staying within one fund family

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ XLI vs VIS — Frequently Asked Questions

Both funds hold similar mega-cap industrials: GE Aerospace (jet engines/aircraft), RTX/Raytheon (defense/aerospace), Caterpillar (construction equipment), Honeywell (industrial technology), Union Pacific (railroads), Deere (agricultural equipment), and Lockheed Martin (defense). VIS adds mid-cap industrials, transportation companies, and defense contractors that don't qualify for the S&P 500 selection criteria.
US industrials benefit from several long-term tailwinds: infrastructure investment (infrastructure bill spending), defense budget growth (NATO spending), reshoring of manufacturing (semiconductor fabs, clean energy), and AI-driven factory automation. The sector is cyclical — it underperforms in recessions — but long-term secular trends support industrial capex. Both XLI and VIS provide diversified exposure to US manufacturing and industrial growth.
Significantly — defense contractors (RTX/Raytheon, Lockheed Martin, Northrop Grumman, L3Harris) are major holdings in both XLI and VIS. With elevated global defense spending post-Ukraine war and NATO members increasing military budgets, defense companies have been strong performers. Defense gives industrials ETFs a somewhat defensive quality despite the sector's cyclical classification.
The CHIPS Act (domestic semiconductor manufacturing), IRA (clean energy manufacturing), and bipartisan infrastructure bills have driven significant US industrial investment. Companies building new US facilities benefit — construction companies, equipment suppliers, industrial automation firms. This structural tailwind differentiates US industrials from some other markets and adds a policy-driven growth layer beyond the normal economic cycle.
For most investors, XLI or VIS provides appropriate industrials sector exposure as a cyclical complement to defensive positions. A common approach is a "barbell" strategy — pairing growth/tech ETFs (QQQ, SCHG) with defensive (XLP, XLU) and cyclical (XLI, XLF) sectors for diversification. Industrial ETFs are typically 5-15% of a diversified equity portfolio for investors who want sector tilts beyond a total market fund.

New to ETF investing? See answers to the most common ETF questions →

📄 XLI & VIS Fact Sheets

XLI Fact Sheet VIS Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.