VTI vs XHE
Vanguard Morningstar Total Stock Market ETF vs State Street SPDR S&P Health Care Equipment ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | XHE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $666.9B | $177M | |
| Dividend Yield | 1.07% | 0.06% | |
| Holdings | 3,543 | 70 | |
| YTD Return | +12.65% | +8.99% | |
| 1Y Return | +21.39% | +17.51% | |
| 3Y Return (annualized) | +21.54% | +3.66% | |
| 5Y Return (annualized) | +12.11% | -5.22% | |
| Volatility (annualized) | 15.3% | 18.8% | |
| Max Drawdown | -56.6% | -49.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Jan 26, 2011 |
VTI vs XHE Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and State Street SPDR S&P Health Care Equipment ETF (XHE) is a ETF from State Street Investment Management. Over the past year VTI returned +21.39% while XHE returned +17.51%. Year to date, VTI is up 12.65% versus a gain of 8.99% for XHE.
Over three years, VTI compounded at +21.54% per year against +3.66% for XHE; over five years the annualized figures are +12.11% and -5.22% respectively. Across the full 16-year window we track, XHE has the edge at +9.87% annualized vs +8.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 15.3% for VTI. 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 -56.6% for VTI and -49.9% for XHE. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while XHE charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 0.06% for XHE.
Holdings Overlap
VTI and XHE share 55 holdings out of 2801 unique holdings combined, representing a 1.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XHE?
VTI has an expense ratio of 0.03% while XHE charges 0.35%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, VTI or XHE?
Over the past year VTI returned +21.39% vs +17.51% for XHE, so VTI leads on 1-year performance. Over the longest common window we track (16 years), VTI annualized +8.07% vs +9.87% for XHE. Past performance does not guarantee future results.
Which is riskier, VTI or XHE?
XHE has been the more volatile fund at 18.8% annualized versus 15.3% for VTI. Worst drawdown: VTI -56.6% vs XHE -49.9%.
Should I hold both VTI and XHE?
VTI and XHE have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and XHE?
VTI and XHE share 55 common holdings with a 1.2% weight overlap. Combined, they hold 2801 unique securities.
Which pays a higher dividend, VTI or XHE?
VTI yields 1.07% while XHE yields 0.06%, so VTI currently pays the higher dividend yield.
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