VTI vs XHS
Vanguard Morningstar Total Stock Market ETF vs State Street SPDR S&P Health Care Services ETF
Quick Verdict
VTI has a lower expense ratio. XHS delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | XHS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.35% | |
| AUM | $666.9B | $210M | |
| Dividend Yield | 1.07% | 0.20% | |
| Holdings | 3,543 | 62 | |
| YTD Return | +14.82% | +26.30% | |
| 1Y Return | +22.43% | +42.75% | |
| 3Y Return (annualized) | +21.93% | +14.37% | |
| 5Y Return (annualized) | +12.34% | +5.00% | |
| Volatility (annualized) | 15.4% | 19.5% | |
| Max Drawdown | -56.6% | -39.4% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Sep 28, 2011 |
VTI vs XHS Performance
Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and State Street SPDR S&P Health Care Services ETF (XHS) is a ETF from State Street Investment Management. Over the past year VTI returned +22.43% while XHS returned +42.75%. Year to date, VTI is up 14.82% versus a gain of 26.30% for XHS.
Over three years, VTI compounded at +21.93% per year against +14.37% for XHS; over five years the annualized figures are +12.34% and +5.00% respectively. Across the full 15-year window we track, XHS has the edge at +12.20% annualized vs +8.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHS has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 15.4% 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 -39.4% for XHS. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while XHS 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 0.20% for XHS.
Holdings Overlap
VTI and XHS share 50 holdings out of 2798 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XHS?
VTI has an expense ratio of 0.03% while XHS 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 XHS?
Over the past year VTI returned +22.43% vs +42.75% for XHS, so XHS leads on 1-year performance. Over the longest common window we track (15 years), VTI annualized +8.16% vs +12.20% for XHS. Past performance does not guarantee future results.
Which is riskier, VTI or XHS?
XHS has been the more volatile fund at 19.5% annualized versus 15.4% for VTI. Worst drawdown: VTI -56.6% vs XHS -39.4%.
Should I hold both VTI and XHS?
VTI and XHS have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and XHS?
VTI and XHS share 50 common holdings with a 1.5% weight overlap. Combined, they hold 2798 unique securities.
Which pays a higher dividend, VTI or XHS?
VTI yields 1.07% while XHS yields 0.20%, so VTI currently pays the higher dividend yield.
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