XLY alternatives and similar ETFs

XLY alternatives at a glance#

Each fund below can stand in for XLY, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How XLY and its alternatives did over the same dates#

Each row measures the alternative and XLY on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each XLY alternative, compared#

VCR: Vanguard Consumer Discretionary ETF#

VCR also holds US companies that sell things people want but can skip, such as cars, travel and online shopping. It tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index, while XLY tracks the Consumer Discretionary Select Sector Index.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLY. It held 277 stocks, against 47 for XLY.

From January 2004 to October 2026, VCR returned about 10.6% a year and XLY returned about 10.4% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the VCR fund page for its returns by year and worst drop.

SCHG: Schwab U.S. Large-Cap Growth ETF#

SCHG is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.04% a year, about $4 on $10,000, against $8 for XLY. It held 195 stocks, against 47 for XLY.

From January 2010 to October 2026, SCHG returned about 16.1% a year and XLY returned about 14.1% a year. Over about the last five years they moved together on most days (correlation 0.88).

Read the SCHG fund page for its returns by year and worst drop.

VUG: Vanguard Morningstar Growth ETF#

VUG is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.03% a year, about $3 on $10,000, against $8 for XLY. It held 135 stocks, against 47 for XLY.

From January 2004 to October 2026, VUG returned about 12.1% a year and XLY returned about 10.4% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the VUG fund page for its returns by year and worst drop.

MGK: Vanguard Morningstar Mega Cap Growth ETF#

MGK is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.05% a year, about $5 on $10,000, against $8 for XLY. It held 52 stocks, against 47 for XLY.

From December 2007 to October 2026, MGK returned about 13.5% a year and XLY returned about 12.2% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the MGK fund page for its returns by year and worst drop.

VONG: Vanguard Russell 1000 Growth ETF#

VONG is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.06% a year, about $6 on $10,000, against $8 for XLY. It held 371 stocks, against 47 for XLY.

From September 2010 to October 2026, VONG returned about 16.4% a year and XLY returned about 14.1% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the VONG fund page for its returns by year and worst drop.

SPYG: State Street SPDR Portfolio S&P 500 Growth ETF#

SPYG is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.04% a year, about $4 on $10,000, against $8 for XLY. It held 152 stocks, against 47 for XLY.

From October 2000 to October 2026, SPYG returned about 7.5% a year and XLY returned about 10.1% a year. Over about the last five years they moved together on most days (correlation 0.85).

Read the SPYG fund page for its returns by year and worst drop.

VOOG: Vanguard S&P 500 Growth ETF#

VOOG is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.07% a year, about $7 on $10,000, against $8 for XLY. It held 152 stocks, against 47 for XLY.

From September 2010 to October 2026, VOOG returned about 16.6% a year and XLY returned about 14.3% a year. Over about the last five years they moved together on most days (correlation 0.85).

Read the VOOG fund page for its returns by year and worst drop.

IVW: iShares S&P 500 Growth ETF#

IVW is a looser match. It holds large US companies whose sales and profits are growing fast, while XLY holds US companies that sell things people want but can skip, such as cars, travel and online shopping.

It charges 0.18% a year, about $18 on $10,000, against $8 for XLY. It held 152 stocks, against 47 for XLY.

From May 2000 to October 2026, IVW returned about 8.9% a year and XLY returned about 9.7% a year. Over about the last five years they moved together on most days (correlation 0.85).

Read the IVW fund page for its returns by year and worst drop.

XLY versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to XLY from each other company on this page:

• Vanguard: VCR, Vanguard Consumer Discretionary ETF (same kind of fund, 0.09% a year)
• Schwab: SCHG, Schwab U.S. Large-Cap Growth ETF (related fund, 0.04% a year)
• iShares (BlackRock): IVW, iShares S&P 500 Growth ETF (related fund, 0.18% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between XLY and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, XLY costs about $8 a year. VUG costs about $3.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping XLY to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as VCR, SCHG or VUG, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test XLY and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add XLY and VCR, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as XLY. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like XLY over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with XLY only on days both traded. Read what a backtest simulates for more on these measures.