VUG vs XLV
Vanguard Morningstar Growth ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VUG or XLV?
Large Cap Growth against Large Cap Blend.
VUG has a lower expense ratio. VUG led over 3Y, 5Y and the full window, XLV over 1Y. XLV is less concentrated, with 60.7% of the fund in its ten largest positions against 63.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VUG | XLV |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $219.5B | $44.5B |
| Dividend Yield | 0.38% | 1.49% |
| Holdings | 146 | 63 |
| YTD Return | +11.65%Best | +9.47% |
| 1Y Return | +13.57% | +24.85%Best |
| 3Y Return (annualized) | +26.10%Best | +10.56% |
| 5Y Return (annualized) | +12.87%Best | +6.60% |
| Volatility (annualized) | 16.5% | 13.7%Best |
| Max Drawdown | -51.4% | -40.6%Best |
| $10,000 over 5 years | $18,319Best | $13,765 |
| Top 10 Weight | 63.6% | 60.7%Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 23, 2026 (22.6 years).
VUG vs XLV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
VUG vs XLV Performance
Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US) and State Street Health Care Select Sector SPDR ETF (XLV) is an ETF from SPDR State Street Global Advisors. Over the past year VUG returned +13.57% while XLV returned +24.85%. Year to date, VUG is up 11.65% versus a gain of 9.47% for XLV.
Over three years, VUG compounded at +26.10% per year against +10.56% for XLV; over five years the annualized figures are +12.87% and +6.60% respectively. Across the full 23-year window we track, VUG has the edge at +11.28% annualized vs +8.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 13.7% 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 -51.4% for VUG and -40.6% for XLV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.64. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VUG 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, VUG currently yields 0.38% against 1.49% for XLV.
Holdings Overlap
4.4% of VUG's money is in holdings XLV also owns. 26.1% of XLV's money is in holdings VUG also owns.
XLV and VUG share little of their money.
12 positions in common, counted across the 147 positions we hold weights for in VUG and 61 in XLV, against full books of 146 and 63.
What only one of them owns
Our book lists 47 positions for XLV that do not appear in our book for VUG (73.5% of the fund), and 134 for VUG that do not appear in XLV (95.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VUG | Weight in XLV | Difference |
|---|---|---|---|
| LLYEli Lilly & Co. | 2.72% | 14.82% | 12.10% |
| VRTXNvaesrtex Pharmaceuticals Inc | 0.35% | 2.25% | 1.90% |
| ISRGIntuitive Surgical Inc. | 0.36% | 2.11% | 1.75% |
| SYKStryker Corp 3.375 11/25 | 0.17% | 1.77% | 1.60% |
| BSXBoston Scientific Corp. | 0.11% | 1.15% | 1.04% |
| IDXXIdexx Labs | 0.14% | 0.69% | 0.55% |
| VEEVVeeva Systems Inc | 0.11% | 0.68% | 0.57% |
| WATWaters Corp. | 0.07% | 0.64% | 0.57% |
| DXCMDexcom Inc. | 0.11% | 0.56% | 0.45% |
| RMDResmed Inc. | 0.10% | 0.54% | 0.44% |
26.1% of XLV is already inside VUG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VUG or XLV?
VUG has an expense ratio of 0.03% while XLV charges 0.08%. VUG is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VUG or XLV?
Over the past year VUG returned +13.57% vs +24.85% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (23 years), VUG annualized +11.28% vs +8.19% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VUG or XLV?
VUG has been the more volatile fund at 16.5% annualized versus 13.7% for XLV. Worst drawdown: VUG -51.4% vs XLV -40.6%.
Should I hold both VUG and XLV?
VUG and XLV have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VUG and XLV?
26.1% of XLV's money is in holdings VUG also owns. 26.1% of XLV's is in holdings VUG also owns. They hold 12 positions in common, counted across the 147 positions we hold weights for in VUG and 61 in XLV.
Which pays a higher dividend, VUG or XLV?
VUG yields 0.38% while XLV yields 1.49%, so XLV currently pays the higher dividend yield.
Is XLV better than VUG?
VUG has a lower expense ratio. VUG led over 3Y, 5Y and the full window, XLV over 1Y. XLV is less concentrated, with 60.7% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.