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 (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.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 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 | $29.8B | $8.6B |
| Holdings | 78 | 345 |
| Inception | 1998 | 2004 |
| 1-Year Return | +10.85% | +9.12% |
| 3-Year Return | +19.76% | +19.41% |
| 5-Year Return | +12.80% | +12.45% |
| Dividend Yield | 1.13% | 0.96% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 XLI vs VIS: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$1/yr per $10K vs VIS
- already use State Street and prefer staying within one fund family
- 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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