VGHAX vs XLF
Vanguard Health Care Fund Admiral Shares vs State Street Financial Select Sector SPDR ETF
Which is better, VGHAX or XLF?
Large Cap Growth against Large Cap Value.
XLF has a lower expense ratio. VGHAX led over 1Y, XLF over 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.8% of the fund in its ten largest positions against 56.7%.
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 | VGHAX | XLF |
|---|---|---|
| Expense Ratio | 0.27% | 0.08%Best |
| AUM | $32.8B | $54.9B |
| Dividend Yield | 6.45% | 1.42% |
| Holdings | 109 | 80 |
| YTD Price Return | +4.36% | +5.77%Best |
| 1Y Price Return | +18.44%Best | +7.47% |
| 3Y Price Return (annualized) | +0.52% | +19.17%Best |
| 5Y Price Return (annualized) | -2.62% | +8.97%Best |
| Volatility (annualized) | 15.3%Best | 17.9% |
| Max Drawdown | -33.1% | -26.9%Best |
| $10,000 over 5 years | $8,757 | $15,365Best |
| Top 10 Weight | 40.8%Best | 56.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Nov 12, 2001 | Dec 16, 1998 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VGHAX yields 6.45% and XLF 1.42% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 7, 2021 to Sep 4, 2026 (5 years).
VGHAX vs XLF 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VGHAX vs XLF Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year VGHAX returned +18.44% while XLF returned +7.47%. Year to date, VGHAX is up 4.36% versus a gain of 5.77% for XLF.
Over three years, VGHAX compounded at +0.52% per year against +19.17% for XLF; over five years the annualized figures are -2.62% and +8.97% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 15.3% 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 -33.1% for VGHAX and -26.9% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLF 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 1.42% for XLF.
Structure and taxes
VGHAX is a mutual fund and XLF is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 86 holdings in VGHAX and 77 in XLF, totalling 99.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 134 days apart, VGHAX as of Mar 31, 2026 and XLF as of Aug 12, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 86 positions we hold weights for in VGHAX and 77 in XLF, against full books of 109 and 80.
What only one of them owns
Our book lists 76 positions for XLF that do not appear in our book for VGHAX (99.5% of the fund), and 63 for VGHAX that do not appear in XLF (71.1%).
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 VGHAX and XLF 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, VGHAX or XLF?
VGHAX has an expense ratio of 0.27% while XLF charges 0.08%. XLF is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, VGHAX or XLF?
Over the past year VGHAX returned +18.44% vs +7.47% for XLF, so VGHAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or XLF?
XLF has been the more volatile fund at 17.9% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -33.1% vs XLF -26.9%.
Should I hold both VGHAX and XLF?
VGHAX and XLF have a monthly-return correlation of 0.52, 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, VGHAX or XLF?
VGHAX yields 6.45% while XLF yields 1.42%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or XLF in a taxable account?
XLF is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is XLF better than VGHAX?
XLF has a lower expense ratio. VGHAX led over 1Y, XLF over 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.8% of the fund in its ten largest positions against 56.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.