VTV vs XLV
Vanguard Morningstar Value ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VTV has a lower expense ratio. XLV delivered stronger 1-year returns. VTV offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | VTV | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $187.8B | $43.9B | |
| Dividend Yield | 1.85% | 1.56% | |
| Holdings | 311 | 63 | |
| YTD Return | +18.65% | +13.25% | |
| 1Y Return | +27.73% | +29.65% | |
| 3Y Return (annualized) | +19.75% | +11.30% | |
| 5Y Return (annualized) | +12.58% | +6.83% | |
| Volatility (annualized) | 14.5% | 14.2% | |
| Max Drawdown | -61.3% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
VTV vs XLV Performance
Vanguard Morningstar Value ETF (VTV) 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 VTV returned +27.73% while XLV returned +29.65%. Year to date, VTV is up 18.65% versus a gain of 13.25% for XLV.
Over three years, VTV compounded at +19.75% per year against +11.30% for XLV; over five years the annualized figures are +12.58% and +6.83% respectively. Across the full 23-year window we track, VTV has the edge at +7.62% annualized vs +7.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTV has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -61.3% for VTV 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTV 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, VTV currently yields 1.85% against 1.56% for XLV.
Holdings Overlap
VTV and XLV share 36 holdings out of 332 unique holdings combined, representing a 15.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VTV or XLV?
VTV has an expense ratio of 0.03% while XLV charges 0.08%. VTV is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTV or XLV?
Over the past year VTV returned +27.73% vs +29.65% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (23 years), VTV annualized +7.62% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, VTV or XLV?
VTV has been the more volatile fund at 14.5% annualized versus 14.2% for XLV. Worst drawdown: VTV -61.3% vs XLV -40.6%.
Should I hold both VTV and XLV?
VTV and XLV have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTV and XLV?
VTV and XLV share 36 common holdings with a 15.1% weight overlap. Combined, they hold 332 unique securities.
Which pays a higher dividend, VTV or XLV?
VTV yields 1.85% while XLV yields 1.56%, so VTV currently pays the higher dividend yield.
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