VTBNX vs XLV
Vanguard Total Bond Market II Index Fund Institutional Shares vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VTBNX has a lower expense ratio. XLV delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.08% | |
| AUM | $207.3B | $43.9B | |
| Dividend Yield | 3.79% | 1.56% | |
| Holdings | 15,623 | 63 | |
| YTD Return | -2.70% | +13.25% | |
| 1Y Return | -1.68% | +29.65% | |
| 3Y Return (annualized) | +0.65% | +11.30% | |
| 5Y Return (annualized) | -3.62% | +6.83% | |
| Volatility (annualized) | 6.3% | 14.2% | |
| Max Drawdown | -21.5% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Dec 16, 1998 |
VTBNX vs XLV Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) 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 VTBNX returned -1.68% while XLV returned +29.65%. Year to date, VTBNX is down 2.70% versus a gain of 13.25% for XLV.
Over three years, VTBNX compounded at +0.65% per year against +11.30% for XLV; over five years the annualized figures are -3.62% and +6.83% respectively. Across the full 5-year window we track, XLV has the edge at +7.62% annualized vs -3.62%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTBNX charges 0.02% per year while XLV charges 0.08%. On a $10,000 position that is $2 vs $8 annually, a gap of $6 per year that compounds over a long holding period. On income, VTBNX currently yields 3.79% against 1.56% for XLV.
Holdings Overlap
VTBNX and XLV share 0 holdings out of 12788 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, VTBNX or XLV?
VTBNX has an expense ratio of 0.02% while XLV charges 0.08%. VTBNX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTBNX or XLV?
Over the past year VTBNX returned -1.68% vs +29.65% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.62% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, VTBNX or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs XLV -40.6%.
Should I hold both VTBNX and XLV?
VTBNX and XLV have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTBNX and XLV?
VTBNX and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 12788 unique securities.
Which pays a higher dividend, VTBNX or XLV?
VTBNX yields 3.79% while XLV yields 1.56%, so VTBNX currently pays the higher dividend yield.
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