VXF vs XLV
Vanguard Extended Market ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VXF has a lower expense ratio. XLV delivered stronger 1-year returns. VXF offers more diversification with 3,376 holdings.
Side-by-Side Comparison
| Metric | VXF | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $30.5B | $43.9B | |
| Dividend Yield | 1.03% | 1.56% | |
| Holdings | 3,376 | 63 | |
| YTD Return | +16.66% | +13.25% | |
| 1Y Return | +24.93% | +29.65% | |
| 3Y Return (annualized) | +20.39% | +11.30% | |
| 5Y Return (annualized) | +7.03% | +6.83% | |
| Volatility (annualized) | 18.7% | 14.2% | |
| Max Drawdown | -59.4% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 27, 2001 | Dec 16, 1998 |
VXF vs XLV Performance
Vanguard Extended Market ETF (VXF) 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 VXF returned +24.93% while XLV returned +29.65%. Year to date, VXF is up 16.66% versus a gain of 13.25% for XLV.
Over three years, VXF compounded at +20.39% per year against +11.30% for XLV; over five years the annualized figures are +7.03% and +6.83% respectively. Across the full 25-year window we track, VXF has the edge at +9.04% annualized vs +7.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -59.4% for VXF 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXF charges 0.05% per year while XLV charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VXF currently yields 1.03% against 1.56% for XLV.
Holdings Overlap
VXF and XLV share 0 holdings out of 3354 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, VXF or XLV?
VXF has an expense ratio of 0.05% while XLV charges 0.08%. VXF is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VXF or XLV?
Over the past year VXF returned +24.93% vs +29.65% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (25 years), VXF annualized +9.04% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, VXF or XLV?
VXF has been the more volatile fund at 18.7% annualized versus 14.2% for XLV. Worst drawdown: VXF -59.4% vs XLV -40.6%.
Should I hold both VXF and XLV?
VXF and XLV have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXF and XLV?
VXF and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3354 unique securities.
Which pays a higher dividend, VXF or XLV?
VXF yields 1.03% while XLV yields 1.56%, so XLV currently pays the higher dividend yield.
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