VGHAX vs XLK
Vanguard Health Care Fund Admiral Shares vs State Street Technology Select Sector SPDR ETF
Quick Verdict
XLK has a lower expense ratio. XLK delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | VGHAX | XLK | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.08% | |
| AUM | $32.8B | $124.4B | |
| Dividend Yield | 6.45% | 0.45% | |
| Holdings | 109 | 77 | |
| YTD Return | +6.28% | +27.34% | |
| 1Y Return | +23.01% | +42.34% | |
| 3Y Return (annualized) | +1.17% | +30.61% | |
| 5Y Return (annualized) | -2.22% | +19.29% | |
| Volatility (annualized) | 15.6% | 23.2% | |
| Max Drawdown | -33.6% | -82.0% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Dec 16, 1998 |
VGHAX vs XLK Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is a ETF from SPDR State Street Global Advisors. Over the past year VGHAX returned +23.01% while XLK returned +42.34%. Year to date, VGHAX is up 6.28% versus a gain of 27.34% for XLK.
Over three years, VGHAX compounded at +1.17% per year against +30.61% for XLK; over five years the annualized figures are -2.22% and +19.29% respectively. Across the full 5-year window we track, XLK has the edge at +9.37% annualized vs -2.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.2% compared with 15.6% 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 -82.0% for XLK. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLK 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 0.45% for XLK.
Holdings Overlap
VGHAX and XLK share 0 holdings out of 161 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 XLK?
VGHAX has an expense ratio of 0.27% while XLK charges 0.08%. XLK is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VGHAX or XLK?
Over the past year VGHAX returned +23.01% vs +42.34% for XLK, so XLK leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.22% vs +9.37% for XLK. Past performance does not guarantee future results.
Which is riskier, VGHAX or XLK?
XLK has been the more volatile fund at 23.2% annualized versus 15.6% for VGHAX. Worst drawdown: VGHAX -33.6% vs XLK -82.0%.
Should I hold both VGHAX and XLK?
VGHAX and XLK have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and XLK?
VGHAX and XLK share 0 common holdings with a 0.0% weight overlap. Combined, they hold 161 unique securities.
Which pays a higher dividend, VGHAX or XLK?
VGHAX yields 6.45% while XLK yields 0.45%, so VGHAX currently pays the higher dividend yield.
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