VYM vs XHE
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Health Care Equipment ETF
Which is better, VYM or XHE?
Large Cap Value against Mid Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 23.2% of the fund in its ten largest positions against 26.1%.
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 | VYM | XHE |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $83.1B | $192M |
| Dividend Yield | 2.22% | 0.05% |
| Holdings | 608 | 71 |
| YTD Return | +10.00%Best | +1.55% |
| 1Y Return | +13.75%Best | +12.08% |
| 3Y Return (annualized) | +18.81%Best | +5.31% |
| 5Y Return (annualized) | +11.63%Best | -6.19% |
| Volatility (annualized) | 13.0%Best | 18.8% |
| Max Drawdown | -35.7%Best | -49.9% |
| $10,000 over 5 years | $17,334Best | $7,265 |
| Top 10 Weight | 26.1% | 23.2%Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Nov 10, 2006 | Jan 26, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jan 27, 2011 to Oct 2, 2026 (15.7 years).
VYM vs XHE 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 15.7 years both funds cover.
VYM vs XHE Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street SPDR S&P Health Care Equipment ETF (XHE) is an ETF from State Street Investment Management. Over the past year VYM returned +13.75% while XHE returned +12.08%. Year to date, VYM is up 10.00% versus a gain of 1.55% for XHE.
Over three years, VYM compounded at +18.81% per year against +5.31% for XHE; over five years the annualized figures are +11.63% and -6.19% respectively. Across the full 16-year window we track, VYM has the edge at +9.69% annualized vs +9.29%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 13.0% for VYM. 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 -35.7% for VYM and -49.9% for XHE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while XHE charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 0.05% for XHE.
Holdings Overlap
1.4% of VYM's money is in holdings XHE also owns. 7.2% of XHE's money is in holdings VYM also owns.
XHE and VYM share little of their money.
4 positions in common, counted across the 557 positions we hold weights for in VYM and 70 in XHE, against full books of 608 and 71.
What only one of them owns
Our book lists 62 positions for XHE that do not appear in our book for VYM (90.2% of the fund), and 524 for VYM that do not appear in XHE (95.7%).
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.
You are not choosing between two funds in isolation.
Whichever of VYM and XHE you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XHE?
VYM has an expense ratio of 0.04% while XHE charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or XHE?
Over the past year VYM returned +13.75% vs +12.08% for XHE, so VYM leads on 1-year performance. Over the longest common window we track (16 years), VYM annualized +9.69% vs +9.29% for XHE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XHE?
XHE has been the more volatile fund at 18.8% annualized versus 13.0% for VYM. Worst drawdown: VYM -35.7% vs XHE -49.9%.
Should I hold both VYM and XHE?
VYM and XHE have a monthly-return correlation of 0.65, 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 VYM and XHE?
7.2% of XHE's money is in holdings VYM also owns. 7.2% of XHE's is in holdings VYM also owns. They hold 4 positions in common, counted across the 557 positions we hold weights for in VYM and 70 in XHE.
Which pays a higher dividend, VYM or XHE?
VYM yields 2.22% while XHE yields 0.05%, so VYM currently pays the higher dividend yield.
Is XHE better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. XHE is less concentrated, with 23.2% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.