VBK vs XLV
Vanguard Morningstar Small-Cap Growth ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VBK or XLV?
Small Cap Growth against Large Cap Blend.
VBK has a lower expense ratio. VBK led over 3Y and the full window, XLV over 1Y and 5Y. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 60.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VBK | XLV |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $23.2B | $44.5B |
| Dividend Yield | 0.44% | 1.49% |
| Holdings | 553 | 63 |
| YTD Return | +10.45%Best | +9.21% |
| 1Y Return | +11.44% | +24.63%Best |
| 3Y Return (annualized) | +16.03%Best | +10.27% |
| 5Y Return (annualized) | +4.05% | +6.78%Best |
| Volatility (annualized) | 19.6% | 13.7%Best |
| Max Drawdown | -59.4% | -40.6%Best |
| $10,000 over 5 years | $12,196 | $13,882Best |
| Top 10 Weight | 9.1%Best | 60.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Blend |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 18, 2026 (22.6 years).
VBK vs XLV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
VBK vs XLV Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is an ETF from SPDR State Street Global Advisors. Over the past year VBK returned +11.44% while XLV returned +24.63%. Year to date, VBK is up 10.45% versus a gain of 9.21% for XLV.
Over three years, VBK compounded at +16.03% per year against +10.27% for XLV; over five years the annualized figures are +4.05% and +6.78% respectively. Across the full 23-year window we track, VBK has the edge at +9.06% annualized vs +8.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 13.7% for XLV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.4% for VBK and -40.6% for XLV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBK charges 0.05% per year while XLV charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VBK currently yields 0.44% against 1.49% for XLV.
Holdings Overlap
1.1% of VBK's money is in holdings XLV also owns. 0.7% of XLV's money is in holdings VBK also owns.
VBK and XLV share little of their money.
The two holdings books were reported 63 days apart, VBK as of Jun 30, 2026 and XLV as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 542 positions we hold weights for in VBK and 61 in XLV, against full books of 553 and 63.
What only one of them owns
Our book lists 56 positions for XLV that do not appear in our book for VBK (98.8% of the fund), and 522 for VBK that do not appear in XLV (91.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VBK and XLV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBK or XLV?
VBK has an expense ratio of 0.05% while XLV charges 0.08%. VBK is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VBK or XLV?
Over the past year VBK returned +11.44% vs +24.63% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (23 years), VBK annualized +9.06% vs +8.19% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or XLV?
VBK has been the more volatile fund at 19.6% annualized versus 13.7% for XLV. Worst drawdown: VBK -59.4% vs XLV -40.6%.
Should I hold both VBK and XLV?
VBK and XLV have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VBK and XLV?
1.1% of VBK's money is in holdings XLV also owns. 0.7% of XLV's is in holdings VBK also owns. They hold 3 positions in common, counted across the 542 positions we hold weights for in VBK and 61 in XLV.
Which pays a higher dividend, VBK or XLV?
VBK yields 0.44% while XLV yields 1.49%, so XLV currently pays the higher dividend yield.
Is XLV better than VBK?
VBK has a lower expense ratio. VBK led over 3Y and the full window, XLV over 1Y and 5Y. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 60.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.