VOO vs XLV
Vanguard S&P 500 ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VOO or XLV?
Each has led over a different period.
VOO has a lower expense ratio. VOO led over 3Y, 5Y and the full window, XLV over 1Y. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 60.7%.
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 | VOO | XLV |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $44.5B |
| Dividend Yield | 1.04% | 1.49% |
| Holdings | 509 | 63 |
| YTD Return | +12.23%Best | +8.03% |
| 1Y Return | +18.60% | +22.30%Best |
| 3Y Return (annualized) | +20.98%Best | +9.64% |
| 5Y Return (annualized) | +12.76%Best | +6.09% |
| Volatility (annualized) | 14.1% | 13.6%Best |
| Max Drawdown | -34.3% | -28.8%Best |
| $10,000 over 5 years | $18,230Best | $13,439 |
| Top 10 Weight | 36.4%Best | 60.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 9, 2026 (16 years).
VOO 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 16 years both funds cover.
VOO vs XLV Performance
Vanguard S&P 500 ETF (VOO) 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 VOO returned +18.60% while XLV returned +22.30%. Year to date, VOO is up 12.23% versus a gain of 8.03% for XLV.
Over three years, VOO compounded at +20.98% per year against +9.64% for XLV; over five years the annualized figures are +12.76% and +6.09% respectively. Across the full 16-year window we track, VOO has the edge at +13.40% annualized vs +12.05%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 13.6% 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 -34.3% for VOO and -28.8% 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO 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, VOO currently yields 1.04% against 1.49% for XLV.
Holdings Overlap
8.9% of VOO's money is in holdings XLV also owns. 99.8% of XLV's money is in holdings VOO also owns.
Most of XLV is already inside VOO. Owning both mostly buys the same companies twice.
59 positions in common, counted across the 505 positions we hold weights for in VOO and 61 in XLV, against full books of 509 and 63.
What only one of them owns
Our book lists 1 positions for XLV that do not appear in our book for VOO (0.1% of the fund), and 438 for VOO that do not appear in XLV (90.6%).
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.
Top Shared Holdings
| Stock | Weight in VOO | Weight in XLV | Difference |
|---|---|---|---|
| LLYEli Lilly & Co. | 1.47% | 15.68% | 14.21% |
| JNJJohnson & Johnson - Common | 0.95% | 10.43% | 9.48% |
| ABBVAbbvie Inc. | 0.69% | 7.26% | 6.57% |
| UNHUnitedhealth Group, Inc. | 0.59% | 6.18% | 5.59% |
| MRKMerck & Company Inc | 0.49% | 5.31% | 4.82% |
| AMGNAmgen Inc. | 0.30% | 3.71% | 3.41% |
| TMOThermo Fisher Scientific Inc | 0.29% | 3.69% | 3.40% |
| ABTAbbott Laboratories | 0.25% | 3.14% | 2.89% |
| GILDGilead Sciences | 0.24% | 2.76% | 2.52% |
| PFEPfizer Inc | 0.21% | 2.55% | 2.34% |
99.8% of XLV is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VOO or XLV?
VOO has an expense ratio of 0.03% while XLV charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLV?
Over the past year VOO returned +18.60% vs +22.30% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.40% vs +12.05% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLV?
VOO has been the more volatile fund at 14.1% annualized versus 13.6% for XLV. Worst drawdown: VOO -34.3% vs XLV -28.8%.
Should I hold both VOO and XLV?
VOO and XLV have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VOO and XLV?
99.8% of XLV's money is in holdings VOO also owns. 99.8% of XLV's is in holdings VOO also owns. They hold 59 positions in common, counted across the 505 positions we hold weights for in VOO and 61 in XLV.
Which pays a higher dividend, VOO or XLV?
VOO yields 1.04% while XLV yields 1.49%, so XLV currently pays the higher dividend yield.
Is XLV better than VOO?
VOO has a lower expense ratio. VOO led over 3Y, 5Y and the full window, XLV over 1Y. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 60.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.