VYM vs XLV
Vanguard High Dividend Yield ETF vs State Street Health Care Select Sector SPDR ETF
Which is better, VYM or XLV?
Large Cap Value against Large Cap Blend.
VYM has a lower expense ratio. VYM led over 3Y and 5Y, XLV over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 60.7%.
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 | XLV |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $81.6B | $44.5B |
| Dividend Yield | 2.22% | 1.49% |
| Holdings | 613 | 63 |
| YTD Return | +10.96%Best | +10.18% |
| 1Y Return | +15.42% | +25.94%Best |
| 3Y Return (annualized) | +17.78%Best | +10.81% |
| 5Y Return (annualized) | +12.05%Best | +6.89% |
| Volatility (annualized) | 14.6% | 14.2%Best |
| Max Drawdown | -58.8% | -40.6%Best |
| $10,000 over 5 years | $17,663Best | $13,954 |
| Top 10 Weight | 26.1%Best | 60.7% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Nov 10, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 22, 2026 (19.8 years).
VYM 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 19.8 years both funds cover.
VYM vs XLV Performance
Vanguard High Dividend Yield ETF (VYM) 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 VYM returned +15.42% while XLV returned +25.94%. Year to date, VYM is up 10.96% versus a gain of 10.18% for XLV.
Over three years, VYM compounded at +17.78% per year against +10.81% for XLV; over five years the annualized figures are +12.05% and +6.89% respectively. Across the full 20-year window we track, XLV has the edge at +9.07% annualized vs +6.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLV charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 1.49% for XLV.
Holdings Overlap
13.0% of VYM's money is in holdings XLV also owns. 55.0% of XLV's money is in holdings VYM also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 557 positions we hold weights for in VYM and 61 in XLV, against full books of 613 and 63.
What only one of them owns
Our book lists 39 positions for XLV that do not appear in our book for VYM (44.5% of the fund), and 508 for VYM that do not appear in XLV (84.1%).
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 VYM | Weight in XLV | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 2.51% | 10.54% | 8.03% |
| ABBVAbbvie Inc. | 1.80% | 7.42% | 5.62% |
| UNHUnitedhealth Group, Inc. | 1.52% | 5.81% | 4.29% |
| MRKMerck & Company Inc | 1.31% | 5.98% | 4.67% |
| AMGNAmgen Inc. | 0.78% | 3.82% | 3.04% |
| ABTAbbott Laboratories | 0.74% | 3.06% | 2.32% |
| GILDGilead Sciences | 0.66% | 3.01% | 2.35% |
| PFEPfizer Inc | 0.58% | 2.63% | 2.05% |
| BMYBristol-Myers Squibb Co. | 0.54% | 2.21% | 1.67% |
| CVSCvs Corp | 0.54% | 2.01% | 1.47% |
55.0% of XLV is already inside VYM.
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, VYM or XLV?
VYM has an expense ratio of 0.04% while XLV charges 0.08%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VYM or XLV?
Over the past year VYM returned +15.42% vs +25.94% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.80% vs +9.07% for XLV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XLV?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for XLV. Worst drawdown: VYM -58.8% vs XLV -40.6%.
Should I hold both VYM and XLV?
VYM and XLV have a monthly-return correlation of 0.76, 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 XLV?
55.0% of XLV's money is in holdings VYM also owns. 55.0% of XLV's is in holdings VYM also owns. They hold 20 positions in common, counted across the 557 positions we hold weights for in VYM and 61 in XLV.
Which pays a higher dividend, VYM or XLV?
VYM yields 2.22% while XLV yields 1.49%, so VYM currently pays the higher dividend yield.
Is XLV better than VYM?
VYM has a lower expense ratio. VYM led over 3Y and 5Y, XLV over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 60.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.