VGHAX vs XLK
Vanguard Health Care Fund Admiral Shares vs State Street Technology Select Sector SPDR ETF
Which is better, VGHAX or XLK?
XLK has been ahead.
XLK has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.6% of the fund in its ten largest positions against 61.0%.
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 | VGHAX | XLK |
|---|---|---|
| Expense Ratio | 0.27% | 0.08%Best |
| AUM | $34.1B | $126.4B |
| Dividend Yield | 2.70% | 0.43% |
| Holdings | 109 | 152 |
| YTD Price Return | -0.39% | +31.97%Best |
| 1Y Price Return | +7.17% | +35.29%Best |
| 3Y Price Return (annualized) | -0.49% | +30.84%Best |
| 5Y Price Return (annualized) | -2.58% | +19.75%Best |
| Volatility (annualized) | 15.3%Best | 23.9% |
| Max Drawdown | -32.7%Best | -34.0% |
| $10,000 over 5 years | $8,775 | $24,625Best |
| Top 10 Weight | 40.6%Best | 61.0% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Nov 12, 2001 | Dec 16, 1998 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VGHAX. Both funds are measured the same way, so the comparison holds. VGHAX yields 2.70% and XLK 0.43% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VGHAX vs XLK 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VGHAX vs XLK Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund from Vanguard (US) and State Street Technology Select Sector SPDR ETF (XLK) is an ETF from SPDR State Street Global Advisors. Over the past year VGHAX returned +7.17% while XLK returned +35.29%. Year to date, VGHAX is down 0.39% versus a gain of 31.97% for XLK.
Over three years, VGHAX compounded at -0.49% per year against +30.84% for XLK; over five years the annualized figures are -2.58% and +19.75% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLK has been the more volatile fund, with annualized monthly volatility of 23.9% compared with 15.3% for VGHAX. 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 -32.7% for VGHAX and -34.0% for XLK. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.36. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLK charges 0.08%. On a $10,000 position that is $27 vs $8 annually, a gap of $19 per year that compounds over a long holding period. On income, VGHAX currently yields 2.70% against 0.43% for XLK.
Structure and taxes
VGHAX is a mutual fund and XLK is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 83 holdings in VGHAX and 74 in XLK, totalling 97.6% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 83 positions we hold weights for in VGHAX and 74 in XLK, against full books of 109 and 152.
What only one of them owns
Our book lists 73 positions for XLK that do not appear in our book for VGHAX (99.3% of the fund), and 58 for VGHAX that do not appear in XLK (73.1%).
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.
You are not choosing between two funds in isolation.
Whichever of VGHAX and XLK 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, VGHAX or XLK?
VGHAX has an expense ratio of 0.27% while XLK charges 0.08%. XLK is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, VGHAX or XLK?
Over the past year VGHAX returned +7.17% vs +35.29% for XLK, so XLK leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or XLK?
XLK has been the more volatile fund at 23.9% annualized versus 15.3% for VGHAX. Worst drawdown: VGHAX -32.7% vs XLK -34.0%.
Should I hold both VGHAX and XLK?
VGHAX and XLK have a monthly-return correlation of 0.36, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VGHAX or XLK?
VGHAX yields 2.70% while XLK yields 0.43%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or XLK in a taxable account?
XLK is an ETF and VGHAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is XLK better than VGHAX?
XLK has a lower expense ratio. XLK led over 1Y, 3Y, 5Y and the full window. VGHAX is less concentrated, with 40.6% of the fund in its ten largest positions against 61.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.