VGHAX vs XLE
Vanguard Health Care Fund Admiral Shares vs State Street Energy Select Sector SPDR ETF
Quick Verdict
XLE has a lower expense ratio. XLE delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | VGHAX | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.08% | |
| AUM | $32.8B | $40.0B | |
| Dividend Yield | 6.45% | 2.55% | |
| Holdings | 109 | 24 | |
| YTD Return | +5.03% | +41.33% | |
| 1Y Return | +21.40% | +51.94% | |
| 3Y Return (annualized) | +0.65% | +16.98% | |
| 5Y Return (annualized) | -2.45% | +26.28% | |
| Volatility (annualized) | 15.5% | 25.1% | |
| Max Drawdown | -33.6% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Dec 16, 1998 |
VGHAX vs XLE Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year VGHAX returned +21.40% while XLE returned +51.94%. Year to date, VGHAX is up 5.03% versus a gain of 41.33% for XLE.
Over three years, VGHAX compounded at +0.65% per year against +16.98% for XLE; over five years the annualized figures are -2.45% and +26.28% respectively. Across the full 5-year window we track, XLE has the edge at +7.12% annualized vs -2.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% compared with 15.5% for VGHAX. 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 -33.6% for VGHAX and -76.7% for XLE. 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLE charges 0.08%. On a $10,000 position that is $27 vs $8 annually, a gap of $19 per year that compounds over a long holding period. On income, VGHAX currently yields 6.45% against 2.55% for XLE.
Holdings Overlap
VGHAX and XLE share 0 holdings out of 108 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, VGHAX or XLE?
VGHAX has an expense ratio of 0.27% while XLE charges 0.08%. XLE is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VGHAX or XLE?
Over the past year VGHAX returned +21.40% vs +51.94% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.45% vs +7.12% for XLE. Past performance does not guarantee future results.
Which is riskier, VGHAX or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 15.5% for VGHAX. Worst drawdown: VGHAX -33.6% vs XLE -76.7%.
Should I hold both VGHAX and XLE?
VGHAX and XLE have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and XLE?
VGHAX and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 108 unique securities.
Which pays a higher dividend, VGHAX or XLE?
VGHAX yields 6.45% while XLE yields 2.55%, so VGHAX currently pays the higher dividend yield.
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