VGK vs XLV
Vanguard FTSE Europe ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VGK or XLV?
Each has led over a different period.
VGK has a lower expense ratio. VGK led over 3Y and 5Y, XLV over 1Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 60.6%.
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 | VGK | XLV |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $31.0B | $43.9B |
| Dividend Yield | 2.81% | 1.49% |
| Holdings | 1,250 | 126 |
| YTD Return | +4.29% | +8.19%Best |
| 1Y Return | +10.02% | +17.99%Best |
| 3Y Return (annualized) | +18.96%Best | +11.10% |
| 5Y Return (annualized) | +9.13%Best | +7.54% |
| Volatility (annualized) | 18.5% | 13.8%Best |
| Max Drawdown | -67.3% | -40.6%Best |
| $10,000 over 5 years | $15,478Best | $14,383 |
| Top 10 Weight | 18.4%Best | 60.6% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Oct 2, 2026 (21.6 years).
VGK vs XLV 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 21.6 years both funds cover.
VGK vs XLV Performance
Vanguard FTSE Europe ETF (VGK) is an ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is an ETF from SPDR State Street Global Advisors. Over the past year VGK returned +10.02% while XLV returned +17.99%. Year to date, VGK is up 4.29% versus a gain of 8.19% for XLV.
Over three years, VGK compounded at +18.96% per year against +11.10% for XLV; over five years the annualized figures are +9.13% and +7.54% respectively. Across the full 22-year window we track, XLV has the edge at +8.65% annualized vs +3.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGK has been the more volatile fund, with annualized monthly volatility of 18.5% compared with 13.8% 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 -67.3% for VGK and -40.6% for XLV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGK charges 0.06% per year while XLV charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 1.49% for XLV.
Holdings Overlap
We hold position weights for 1,101 holdings in VGK and 61 in XLV, totalling 95.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,101 positions we hold weights for in VGK and 61 in XLV, against full books of 1,250 and 126.
What only one of them owns
Our book lists 59 positions for XLV that do not appear in our book for VGK (99.6% of the fund), and 12 for VGK that do not appear in XLV (3.0%).
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 VGK and XLV 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, VGK or XLV?
VGK has an expense ratio of 0.06% while XLV charges 0.08%. VGK is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VGK or XLV?
Over the past year VGK returned +10.02% vs +17.99% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.36% vs +8.65% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or XLV?
VGK has been the more volatile fund at 18.5% annualized versus 13.8% for XLV. Worst drawdown: VGK -67.3% vs XLV -40.6%.
Should I hold both VGK and XLV?
VGK and XLV have a monthly-return correlation of 0.65, 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, VGK or XLV?
VGK yields 2.81% while XLV yields 1.49%, so VGK currently pays the higher dividend yield.
Is XLV better than VGK?
VGK has a lower expense ratio. VGK led over 3Y and 5Y, XLV over 1Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 60.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.