VTIP vs XLV
Vanguard Short-Term Inflation-Protected Securities ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VTIP has a lower expense ratio. XLV delivered stronger 1-year returns. XLV offers more diversification with 60 holdings.
Side-by-Side Comparison
| Metric | VTIP | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $19.3B | $42.1B | |
| Dividend Yield | 3.60% | 1.60% | |
| Holdings | 27 | 62 | |
| YTD Return | +1.89% | +9.24% | |
| 1Y Return | +2.97% | +31.54% | |
| 3Y Return (annualized) | +5.46% | +9.30% | |
| 5Y Return (annualized) | +3.38% | +6.53% | |
| Volatility (annualized) | 2.4% | 14.2% | |
| Max Drawdown | -7.1% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Oct 12, 2012 | Dec 16, 1998 |
VTIP vs XLV Performance
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) 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 VTIP returned +2.97% while XLV returned +31.54%. Year to date, VTIP is up 1.89% versus a gain of 9.24% for XLV.
Over three years, VTIP compounded at +5.46% per year against +9.30% for XLV; over five years the annualized figures are +3.38% and +6.53% respectively. Across the full 14-year window we track, XLV has the edge at +7.49% annualized vs +1.58%. 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 2.4% for VTIP. 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 -7.1% for VTIP 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTIP 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, VTIP currently yields 3.60% against 1.60% for XLV.
Holdings Overlap
VTIP and XLV share 0 holdings out of 83 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, VTIP or XLV?
VTIP has an expense ratio of 0.03% while XLV charges 0.08%. VTIP is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTIP or XLV?
Over the past year VTIP returned +2.97% vs +31.54% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.58% vs +7.49% for XLV. Past performance does not guarantee future results.
Which is riskier, VTIP or XLV?
XLV has been the more volatile fund at 14.2% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs XLV -40.6%.
Should I hold both VTIP and XLV?
VTIP and XLV have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTIP and XLV?
VTIP and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 83 unique securities.
Which pays a higher dividend, VTIP or XLV?
VTIP yields 3.60% while XLV yields 1.60%, so VTIP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.