VGHAX vs XLV
Vanguard Health Care Fund Admiral Shares vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
XLV has a lower expense ratio. XLV delivered stronger 1-year returns. VGHAX offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | VGHAX | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.08% | |
| AUM | $32.8B | $43.9B | |
| Dividend Yield | 6.45% | 1.56% | |
| Holdings | 109 | 63 | |
| YTD Return | +6.28% | +13.25% | |
| 1Y Return | +23.01% | +29.65% | |
| 3Y Return (annualized) | +1.17% | +11.30% | |
| 5Y Return (annualized) | -2.22% | +6.83% | |
| Volatility (annualized) | 15.6% | 14.2% | |
| Max Drawdown | -33.6% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2001 | Dec 16, 1998 |
VGHAX vs XLV Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund 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 VGHAX returned +23.01% while XLV returned +29.65%. Year to date, VGHAX is up 6.28% versus a gain of 13.25% for XLV.
Over three years, VGHAX compounded at +1.17% per year against +11.30% for XLV; over five years the annualized figures are -2.22% and +6.83% respectively. Across the full 5-year window we track, XLV has the edge at +7.62% annualized vs -2.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -33.6% for VGHAX 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLV 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 1.56% for XLV.
Holdings Overlap
VGHAX and XLV share 28 holdings out of 118 unique holdings combined, representing a 47.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGHAX or XLV?
VGHAX has an expense ratio of 0.27% while XLV charges 0.08%. XLV is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, VGHAX or XLV?
Over the past year VGHAX returned +23.01% vs +29.65% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (5 years), VGHAX annualized -2.22% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, VGHAX or XLV?
VGHAX has been the more volatile fund at 15.6% annualized versus 14.2% for XLV. Worst drawdown: VGHAX -33.6% vs XLV -40.6%.
Should I hold both VGHAX and XLV?
VGHAX and XLV have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGHAX and XLV?
VGHAX and XLV share 28 common holdings with a 47.0% weight overlap. Combined, they hold 118 unique securities.
Which pays a higher dividend, VGHAX or XLV?
VGHAX yields 6.45% while XLV yields 1.56%, so VGHAX currently pays the higher dividend yield.
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