VBR vs XLV
Vanguard Morningstar Small-Cap Value ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VBR or XLV?
Small Cap Value against Large Cap Blend.
VBR has a lower expense ratio. VBR led over 3Y and 5Y, XLV over 1Y and the full window. VBR is less concentrated, with 5.9% 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 | VBR | XLV |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $37.3B | $44.5B |
| Dividend Yield | 1.76% | 1.49% |
| Holdings | 847 | 63 |
| YTD Return | +11.59%Best | +9.47% |
| 1Y Return | +14.95% | +24.85%Best |
| 3Y Return (annualized) | +16.27%Best | +10.56% |
| 5Y Return (annualized) | +8.87%Best | +6.60% |
| Volatility (annualized) | 19.0% | 13.7%Best |
| Max Drawdown | -64.0% | -40.6%Best |
| $10,000 over 5 years | $15,295Best | $13,765 |
| Top 10 Weight | 5.9%Best | 60.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Value | 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 23, 2026 (22.6 years).
VBR 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.
VBR vs XLV Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) 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 VBR returned +14.95% while XLV returned +24.85%. Year to date, VBR is up 11.59% versus a gain of 9.47% for XLV.
Over three years, VBR compounded at +16.27% per year against +10.56% for XLV; over five years the annualized figures are +8.87% and +6.60% respectively. Across the full 23-year window we track, XLV has the edge at +8.19% annualized vs +7.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -64.0% for VBR 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
VBR 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, VBR currently yields 1.76% against 1.49% for XLV.
Holdings Overlap
3.3% of VBR's money is in holdings XLV also owns. 3.3% of XLV's money is in holdings VBR also owns.
XLV and VBR share little of their money.
The two holdings books were reported 63 days apart, VBR 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.
12 positions in common, counted across the 836 positions we hold weights for in VBR and 61 in XLV, against full books of 847 and 63.
What only one of them owns
Our book lists 47 positions for XLV that do not appear in our book for VBR (96.2% of the fund), and 790 for VBR that do not appear in XLV (93.3%).
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.
Top Shared Holdings
| Stock | Weight in VBR | Weight in XLV | Difference |
|---|---|---|---|
| MRNAModerna therapeutics | 0.53% | 0.88% | 0.35% |
| CNCCentene | 0.34% | 0.49% | 0.15% |
| VTRSViatris Inc. | 0.39% | 0.31% | 0.08% |
| COOCooper Cos Inc/The | 0.30% | 0.22% | 0.08% |
| RVTYRevvity Inc | 0.27% | 0.23% | 0.04% |
| SOLVSolventum Corp | 0.24% | 0.22% | 0.02% |
| CRLCharles River Laboratories International Inc | 0.23% | 0.22% | 0.01% |
| BAXBaxter International Inc. | 0.24% | 0.21% | 0.03% |
| ALGNAlign Technology Inc. | 0.24% | 0.17% | 0.07% |
| HSICHenry Schein Inc | 0.17% | 0.14% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of VBR 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, VBR or XLV?
VBR has an expense ratio of 0.05% while XLV charges 0.08%. VBR is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VBR or XLV?
Over the past year VBR returned +14.95% vs +24.85% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (23 years), VBR annualized +7.72% vs +8.19% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or XLV?
VBR has been the more volatile fund at 19.0% annualized versus 13.7% for XLV. Worst drawdown: VBR -64.0% vs XLV -40.6%.
Should I hold both VBR and XLV?
VBR 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 VBR and XLV?
3.3% of XLV's money is in holdings VBR also owns. 3.3% of XLV's is in holdings VBR also owns. They hold 12 positions in common, counted across the 836 positions we hold weights for in VBR and 61 in XLV.
Which pays a higher dividend, VBR or XLV?
VBR yields 1.76% while XLV yields 1.49%, so VBR currently pays the higher dividend yield.
Is XLV better than VBR?
VBR has a lower expense ratio. VBR led over 3Y and 5Y, XLV over 1Y and the full window. VBR is less concentrated, with 5.9% 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.