VGHAX vs XLV
Vanguard Health Care Fund Admiral Shares vs State Street Health Care Select Sector SPDR ETF
Which is better, VGHAX or XLV?
Large Cap Growth against Large Cap Blend.
XLV has a lower expense ratio. XLV 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 60.6%.
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 | XLV |
|---|---|---|
| Expense Ratio | 0.27% | 0.08%Best |
| AUM | $34.1B | $43.9B |
| Dividend Yield | 2.70% | 1.49% |
| Holdings | 109 | 126 |
| YTD Price Return | -0.39% | +11.86%Best |
| 1Y Price Return | +7.17% | +22.21%Best |
| 3Y Price Return (annualized) | -0.49% | +9.88%Best |
| 5Y Price Return (annualized) | -2.58% | +6.44%Best |
| Volatility (annualized) | 15.3% | 14.7%Best |
| Max Drawdown | -32.7% | -18.1%Best |
| $10,000 over 5 years | $8,775 | $13,662Best |
| Top 10 Weight | 40.6%Best | 60.6% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| 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 XLV 1.49% 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 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VGHAX vs XLV Performance
Vanguard Health Care Fund Admiral Shares (VGHAX) is a mutual fund 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 VGHAX returned +7.17% while XLV returned +22.21%. Year to date, VGHAX is down 0.39% versus a gain of 11.86% for XLV.
Over three years, VGHAX compounded at -0.49% per year against +9.88% for XLV; over five years the annualized figures are -2.58% and +6.44% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGHAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.7% 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 -32.7% for VGHAX and -18.1% 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGHAX charges 0.27% per year while XLV 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 1.49% for XLV.
Structure and taxes
VGHAX is a mutual fund and XLV 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
60.2% of VGHAX's money is in holdings XLV also owns. 80.9% of XLV's money is in holdings VGHAX also owns.
Most of XLV is already inside VGHAX. Owning both mostly buys the same companies twice.
29 positions in common, counted across the 83 positions we hold weights for in VGHAX and 61 in XLV, against full books of 109 and 126.
What only one of them owns
Our book lists 31 positions for XLV that do not appear in our book for VGHAX (19.1% of the fund), and 29 for VGHAX that do not appear in XLV (12.9%).
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 VGHAX | Weight in XLV | Difference |
|---|---|---|---|
| LLYEli Lilly & Co. | 8.61% | 14.79% | 6.18% |
| JNJJohnson & Johnson - Common | 4.83% | 10.71% | 5.88% |
| MRKMerck & Company Inc | 5.44% | 5.96% | 0.52% |
| ABBVAbbvie Inc. | 2.30% | 7.61% | 5.31% |
| UNHUnitedhealth Group, Inc. | 4.05% | 5.73% | 1.68% |
| ISRGIntuitive Surgical Inc. | 2.52% | 2.19% | 0.33% |
| VRTXNvaesrtex Pharmaceuticals Inc | 2.36% | 2.19% | 0.17% |
| CVSCvs Health Corp | 2.52% | 2.02% | 0.50% |
| TMOThermo Fisherscientific Inc. | 0.69% | 3.80% | 3.11% |
| AMGNAmgen Inc. | 0.99% | 3.41% | 2.42% |
80.9% of XLV is already inside VGHAX.
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, VGHAX or XLV?
VGHAX has an expense ratio of 0.27% while XLV charges 0.08%. XLV is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, VGHAX or XLV?
Over the past year VGHAX returned +7.17% vs +22.21% for XLV, so XLV leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGHAX or XLV?
VGHAX has been the more volatile fund at 15.3% annualized versus 14.7% for XLV. Worst drawdown: VGHAX -32.7% vs XLV -18.1%.
Should I hold both VGHAX and XLV?
VGHAX and XLV have a monthly-return correlation of 0.87, 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 VGHAX and XLV?
80.9% of XLV's money is in holdings VGHAX also owns. 80.9% of XLV's is in holdings VGHAX also owns. They hold 29 positions in common, counted across the 83 positions we hold weights for in VGHAX and 61 in XLV.
Which pays a higher dividend, VGHAX or XLV?
VGHAX yields 2.70% while XLV yields 1.49%, so VGHAX currently pays the higher dividend yield.
Is it better to hold VGHAX or XLV in a taxable account?
XLV 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 XLV better than VGHAX?
XLV has a lower expense ratio. XLV 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 60.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.