VOT vs XLV
Vanguard Morningstar Mid-Cap Growth ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VOT has a lower expense ratio. XLV delivered stronger 1-year returns. VOT offers more diversification with 129 holdings.
Side-by-Side Comparison
| Metric | VOT | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $19.1B | $43.9B | |
| Dividend Yield | 0.62% | 1.56% | |
| Holdings | 129 | 63 | |
| YTD Return | +8.10% | +11.80% | |
| 1Y Return | +7.24% | +27.56% | |
| 3Y Return (annualized) | +15.85% | +10.70% | |
| 5Y Return (annualized) | +5.42% | +6.55% | |
| Volatility (annualized) | 18.5% | 14.2% | |
| Max Drawdown | -60.3% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Dec 16, 1998 |
VOT vs XLV Performance
Vanguard Morningstar Mid-Cap Growth ETF (VOT) 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 VOT returned +7.24% while XLV returned +27.56%. Year to date, VOT is up 8.10% versus a gain of 11.80% for XLV.
Over three years, VOT compounded at +15.85% per year against +10.70% for XLV; over five years the annualized figures are +5.42% and +6.55% respectively. Across the full 20-year window we track, VOT has the edge at +9.54% annualized vs +7.57%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOT has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -60.3% for VOT 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOT charges 0.05% per year while XLV charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VOT currently yields 0.62% against 1.56% for XLV.
Holdings Overlap
VOT and XLV share 11 holdings out of 170 unique holdings combined, representing a 6.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOT or XLV?
VOT has an expense ratio of 0.05% while XLV charges 0.08%. VOT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VOT or XLV?
Over the past year VOT returned +7.24% vs +27.56% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (20 years), VOT annualized +9.54% vs +7.57% for XLV. Past performance does not guarantee future results.
Which is riskier, VOT or XLV?
VOT has been the more volatile fund at 18.5% annualized versus 14.2% for XLV. Worst drawdown: VOT -60.3% vs XLV -40.6%.
Should I hold both VOT and XLV?
VOT and XLV have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOT and XLV?
VOT and XLV share 11 common holdings with a 6.1% weight overlap. Combined, they hold 170 unique securities.
Which pays a higher dividend, VOT or XLV?
VOT yields 0.62% while XLV yields 1.56%, so XLV currently pays the higher dividend yield.
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