VGIT vs XLV
VGIT vs XLV
Vanguard Intermediate Term Treasury ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VGIT has a lower expense ratio. XLV delivered stronger 1-year returns. VGIT offers more diversification with 84 holdings.
Side-by-Side Comparison
| Metric | VGIT | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $42.1B | $42.1B | |
| Dividend Yield | 3.84% | 1.60% | |
| Holdings | 106 | 62 | |
| YTD Return | -0.62% | +7.45% | |
| 1Y Return | +1.32% | +30.67% | |
| 3Y Return (annualized) | +3.60% | +8.89% | |
| 5Y Return (annualized) | -0.12% | +6.14% | |
| Volatility (annualized) | 4.3% | 14.2% | |
| Max Drawdown | -17.2% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
VGIT vs XLV Performance
Vanguard Intermediate Term Treasury ETF (VGIT) 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 VGIT returned +1.32% while XLV returned +30.67%. Year to date, VGIT is down 0.62% versus a gain of 7.45% for XLV.
Over three years, VGIT compounded at +3.60% per year against +8.89% for XLV; over five years the annualized figures are -0.12% and +6.14% respectively. Across the full 17-year window we track, XLV has the edge at +7.42% annualized vs +0.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLV has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 4.3% for VGIT. 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 -17.2% for VGIT 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGIT 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, VGIT currently yields 3.84% against 1.60% for XLV.
Holdings Overlap
VGIT and XLV share 0 holdings out of 144 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, VGIT or XLV?
VGIT has an expense ratio of 0.03% while XLV charges 0.08%. VGIT is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VGIT or XLV?
Over the past year VGIT returned +1.32% vs +30.67% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.75% vs +7.42% for XLV. Past performance does not guarantee future results.
Which is riskier, VGIT or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs XLV -40.6%.
Should I hold both VGIT and XLV?
VGIT and XLV have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and XLV?
VGIT and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 144 unique securities.
Which pays a higher dividend, VGIT or XLV?
VGIT yields 3.84% while XLV yields 1.60%, so VGIT currently pays the higher dividend yield.
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