VEA vs XLV
Vanguard FTSE Developed Markets ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3,886 holdings.
Side-by-Side Comparison
| Metric | VEA | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $230.3B | $44.2B | |
| Dividend Yield | 2.55% | 1.56% | |
| Holdings | 3,886 | 63 | |
| YTD Return | +14.89% | +11.33% | |
| 1Y Return | +27.50% | +26.98% | |
| 3Y Return (annualized) | +20.44% | +10.98% | |
| 5Y Return (annualized) | +9.74% | +6.60% | |
| Volatility (annualized) | 17.7% | 14.2% | |
| Max Drawdown | -62.9% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Dec 16, 1998 |
VEA vs XLV Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year VEA returned +27.50% while XLV returned +26.98%. Year to date, VEA is up 14.89% versus a gain of 11.33% for XLV.
Over three years, VEA compounded at +20.44% per year against +10.98% for XLV; over five years the annualized figures are +9.74% and +6.60% respectively. Across the full 19-year window we track, XLV has the edge at +7.54% annualized vs +3.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 14.2% 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 -62.9% for VEA and -40.6% for XLV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VEA 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, VEA currently yields 2.55% against 1.56% for XLV.
Holdings Overlap
VEA and XLV share 0 holdings out of 3805 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEA or XLV?
VEA has an expense ratio of 0.03% while XLV charges 0.08%. VEA is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VEA or XLV?
Over the past year VEA returned +27.50% vs +26.98% for XLV, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.07% vs +7.54% for XLV. Past performance does not guarantee future results.
Which is riskier, VEA or XLV?
VEA has been the more volatile fund at 17.7% annualized versus 14.2% for XLV. Worst drawdown: VEA -62.9% vs XLV -40.6%.
Should I hold both VEA and XLV?
VEA and XLV have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and XLV?
VEA and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3805 unique securities.
Which pays a higher dividend, VEA or XLV?
VEA yields 2.55% while XLV yields 1.56%, so VEA currently pays the higher dividend yield.
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