VCSH vs XLV
Vanguard Short Term Corporate Bond ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VCSH or XLV?
Short Term Bond against Large Cap Blend.
VCSH has a lower expense ratio. XLV led over 1Y, 3Y, 5Y and the full window.
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 | VCSH | XLV |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $52.0B | $44.5B |
| Dividend Yield | 4.47% | 1.49% |
| Holdings | 3,023 | 63 |
| YTD Return | +0.45% | +7.44%Best |
| 1Y Return | +1.78% | +22.74%Best |
| 3Y Return (annualized) | +5.35% | +9.43%Best |
| 5Y Return (annualized) | +2.21% | +6.17%Best |
| Volatility (annualized) | 2.6%Best | 13.6% |
| Max Drawdown | -12.9%Best | -28.8% |
| $10,000 over 5 years | $11,155 | $13,490Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Short Term Bond | Large Cap Blend |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 10, 2026 (16.8 years).
VCSH 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VCSH vs XLV Performance
Vanguard Short Term Corporate Bond ETF (VCSH) 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 VCSH returned +1.78% while XLV returned +22.74%. Year to date, VCSH is up 0.45% versus a gain of 7.44% for XLV.
Over three years, VCSH compounded at +5.35% per year against +9.43% for XLV; over five years the annualized figures are +2.21% and +6.17% respectively. Across the full 17-year window we track, XLV has the edge at +11.15% annualized vs +1.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.6% for VCSH. 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 -12.9% for VCSH and -28.8% 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 0.37. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VCSH charges 0.03% per year while XLV charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, VCSH currently yields 4.47% against 1.49% for XLV.
Holdings Overlap
We hold position weights for 557 holdings in VCSH and 61 in XLV, totalling 20.6% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 557 positions we hold weights for in VCSH and 61 in XLV, against full books of 3,023 and 63.
What only one of them owns
Measured across the 557 and 61 positions we hold weights for.
VCSH holds 495 positions XLV does not, 20.6% of the fund.
Largest: CVS 4.3 03/25/28 0.20%, ABBV 3.2 11/21/29 0.20%, WFC V5.574 07/25/29 0.18%, AMGN 5.15 03/02/28 0.17%, HSBC V7.39 11/03/28 0.16%
You are not choosing between two funds in isolation.
Whichever of VCSH 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, VCSH or XLV?
VCSH has an expense ratio of 0.03% while XLV charges 0.08%. VCSH is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VCSH or XLV?
Over the past year VCSH returned +1.78% vs +22.74% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (17 years), VCSH annualized +1.26% vs +11.15% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCSH or XLV?
XLV has been the more volatile fund at 13.6% annualized versus 2.6% for VCSH. Worst drawdown: VCSH -12.9% vs XLV -28.8%.
Should I hold both VCSH and XLV?
VCSH and XLV have a monthly-return correlation of 0.37, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCSH or XLV?
VCSH yields 4.47% while XLV yields 1.49%, so VCSH currently pays the higher dividend yield.
Is XLV better than VCSH?
VCSH has a lower expense ratio. XLV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.