VTI vs XLV
Vanguard Morningstar Total Stock Market ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VTI has a lower expense ratio. XLV delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VTI | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $666.9B | $43.9B | |
| Dividend Yield | 1.07% | 1.56% | |
| Holdings | 3,543 | 63 | |
| YTD Return | +13.14% | +13.25% | |
| 1Y Return | +22.35% | +29.65% | |
| 3Y Return (annualized) | +21.83% | +11.30% | |
| 5Y Return (annualized) | +12.01% | +6.83% | |
| Volatility (annualized) | 15.3% | 14.2% | |
| Max Drawdown | -56.6% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 24, 2001 | Dec 16, 1998 |
VTI vs XLV Performance
Vanguard Morningstar Total Stock Market ETF (VTI) 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 VTI returned +22.35% while XLV returned +29.65%. Year to date, VTI is up 13.14% versus a gain of 13.25% for XLV.
Over three years, VTI compounded at +21.83% per year against +11.30% for XLV; over five years the annualized figures are +12.01% and +6.83% respectively. Across the full 25-year window we track, VTI has the edge at +8.09% annualized vs +7.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while 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, VTI currently yields 1.07% against 1.56% for XLV.
Holdings Overlap
VTI and XLV share 56 holdings out of 2791 unique holdings combined, representing a 7.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTI or XLV?
VTI has an expense ratio of 0.03% while XLV charges 0.08%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTI or XLV?
Over the past year VTI returned +22.35% vs +29.65% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (25 years), VTI annualized +8.09% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, VTI or XLV?
VTI has been the more volatile fund at 15.3% annualized versus 14.2% for XLV. Worst drawdown: VTI -56.6% vs XLV -40.6%.
Should I hold both VTI and XLV?
VTI and XLV 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 XLV?
VTI and XLV share 56 common holdings with a 7.9% weight overlap. Combined, they hold 2791 unique securities.
Which pays a higher dividend, VTI or XLV?
VTI yields 1.07% while XLV yields 1.56%, so XLV currently pays the higher dividend yield.
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