VXUS vs XLV
Vanguard Total International Stock ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
VXUS has a lower expense ratio. XLV delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VXUS | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $156.5B | $42.1B | |
| Dividend Yield | 2.60% | 1.60% | |
| Holdings | 8,747 | 62 | |
| YTD Return | +14.57% | +7.45% | |
| 1Y Return | +27.82% | +30.67% | |
| 3Y Return (annualized) | +19.27% | +8.89% | |
| 5Y Return (annualized) | +9.28% | +6.14% | |
| Volatility (annualized) | 15.1% | 14.2% | |
| Max Drawdown | -39.9% | -40.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Dec 16, 1998 |
VXUS vs XLV Performance
Vanguard Total International Stock ETF (VXUS) 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 VXUS returned +27.82% while XLV returned +30.67%. Year to date, VXUS is up 14.57% versus a gain of 7.45% for XLV.
Over three years, VXUS compounded at +19.27% per year against +8.89% for XLV; over five years the annualized figures are +9.28% and +6.14% respectively. Across the full 16-year window we track, XLV has the edge at +7.42% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS 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, VXUS currently yields 2.60% against 1.60% for XLV.
Holdings Overlap
VXUS and XLV share 0 holdings out of 7921 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, VXUS or XLV?
VXUS has an expense ratio of 0.05% while XLV charges 0.08%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VXUS or XLV?
Over the past year VXUS returned +27.82% vs +30.67% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.86% vs +7.42% for XLV. Past performance does not guarantee future results.
Which is riskier, VXUS or XLV?
VXUS has been the more volatile fund at 15.1% annualized versus 14.2% for XLV. Worst drawdown: VXUS -39.9% vs XLV -40.6%.
Should I hold both VXUS and XLV?
VXUS and XLV have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XLV?
VXUS and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7921 unique securities.
Which pays a higher dividend, VXUS or XLV?
VXUS yields 2.60% while XLV yields 1.60%, so VXUS currently pays the higher dividend yield.
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