VGHAX vs. XLV

Last updated Jun 23, 2026

VGHAX (Vanguard Health Care Fund Admiral Shares) and XLV (State Street Health Care Select Sector SPDR ETF) are both Health & Biotech Equities funds. VGHAX is actively managed, while XLV is passively managed. Over the past 10 years, VGHAX returned 9.33%/yr vs 9.86%/yr for XLV. Their correlation of 0.90 suggests significant overlap in exposure. VGHAX charges 0.27%/yr vs 0.08%/yr for XLV.

Performance

VGHAX vs. XLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care Fund Admiral Shares (VGHAX) and State Street Health Care Select Sector SPDR ETF (XLV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGHAX achieves a -1.82% return, which is significantly higher than XLV's -2.23% return. Over the past 10 years, VGHAX has underperformed XLV with an annualized return of 9.33%, while XLV has yielded a comparatively higher 9.86% annualized return.

VGHAX

• 1D: -0.50%
• 1M: -0.38%
• YTD: -1.82%
• 6M: -2.25%
• 1Y: 21.11%
• 3Y*: 9.03%
• 5Y*: 6.92%
• 10Y*: 9.33%

XLV

• 1D: 0.88%
• 1M: 0.56%
• YTD: -2.23%
• 6M: -2.55%
• 1Y: 15.69%
• 3Y*: 6.13%
• 5Y*: 5.50%
• 10Y*: 9.86%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VGHAX vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGHAX Vanguard Health Care Fund Admiral Shares	-1.82%	19.72%	9.10%	5.51%	-1.00%	12.82%	12.62%	22.99%	1.07%	19.64%
XLV State Street Health Care Select Sector SPDR ETF	-2.23%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%

Correlation

The correlation between VGHAX and XLV is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Nov 12, 2001	0.90

The correlation between VGHAX and XLV has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

VGHAX vs. XLV - Sectors Allocation Comparison

Sectors	VGHAX	XLV
Healthcare	98.3%	100.0%
Consumer Defensive	1.2%	-
Financial Services	0.0%	-
Basic Materials	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

VGHAX vs. XLV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VGHAX

VGHAX Risk / Return Rank: 29
VGHAX Sharpe Ratio Rank: 26
VGHAX Sortino Ratio Rank: 29
VGHAX Omega Ratio Rank: 24
VGHAX Calmar Ratio Rank: 38
VGHAX Martin Ratio Rank: 27

XLV

XLV Risk / Return Rank: 30
XLV Sharpe Ratio Rank: 30
XLV Sortino Ratio Rank: 32
XLV Omega Ratio Rank: 28
XLV Calmar Ratio Rank: 31
XLV Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VGHAX vs. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care Fund Admiral Shares (VGHAX) and State Street Health Care Select Sector SPDR ETF (XLV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VGHAX	XLV	Difference
Sharpe ratio: Return per unit of total volatility	1.36	1.05	+0.31
Sortino ratio: Return per unit of downside risk	2.10	1.67	+0.43
Omega ratio: Gain probability vs. loss probability	1.24	1.19	+0.05
Calmar ratio: Return relative to maximum drawdown	2.21	1.51	+0.70
Martin ratio: Return relative to average drawdown	5.91	3.56	+2.35

VGHAX vs. XLV - Sharpe Ratio Comparison

The current VGHAX Sharpe Ratio is 1.36, which is comparable to the XLV Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of VGHAX and XLV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGHAX vs. XLV - Drawdown Comparison

The maximum VGHAX drawdown since its inception was -36.85%, smaller than the maximum XLV drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for VGHAX and XLV.

Drawdown Indicators

	VGHAX	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-36.85%	-39.17%	+2.32%
Max Drawdown (1Y) Largest decline over 1 year	-9.19%	-10.47%	+1.28%
Max Drawdown (3Y) Largest decline over 3 years	-16.05%	-17.11%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	-16.92%	-17.11%	+0.19%
Max Drawdown (10Y) Largest decline over 10 years	-27.17%	-28.40%	+1.23%
Current Drawdown Current decline from peak	-4.86%	-5.53%	+0.67%
Average Drawdown Average peak-to-trough decline	-5.61%	-7.12%	+1.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	4.42%	-0.99%

Volatility

VGHAX vs. XLV - Volatility Comparison

The current volatility for Vanguard Health Care Fund Admiral Shares (VGHAX) is 4.69%, while State Street Health Care Select Sector SPDR ETF (XLV) has a volatility of 5.14%. This indicates that VGHAX experiences smaller price fluctuations and is considered to be less risky than XLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGHAX	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.69%	5.14%	-0.45%
Volatility (6M) Calculated over the trailing 6-month period	10.62%	10.58%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.91%	15.06%	-0.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.15%	14.76%	+3.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.59%	16.59%	+1.00%

VGHAX vs. XLV - Expense Ratio Comparison

VGHAX has a 0.27% expense ratio, which is higher than XLV's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VGHAX vs. XLV - Dividend Comparison

VGHAX's dividend yield for the trailing twelve months is around 6.79%, more than XLV's 2.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHAX Vanguard Health Care Fund Admiral Shares	6.79%	6.07%	22.84%	7.22%	5.49%	7.05%	8.02%	11.87%	9.15%	7.36%	8.60%	8.21%
XLV State Street Health Care Select Sector SPDR ETF	2.11%	1.60%	1.67%	1.59%	1.47%	1.33%	1.49%	2.17%	1.57%	1.47%	1.60%	1.43%

Frequently Asked Questions

Can I hold both VGHAX and XLV in my portfolio?

With a correlation of 0.93, VGHAX and XLV move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VGHAX or XLV?

XLV has higher volatility (5.14%) compared to VGHAX (4.69%). In terms of maximum drawdown, VGHAX dropped -36.85% vs XLV's -39.17%.

Which has better risk-adjusted returns?

VGHAX currently has the higher Sharpe Ratio (1.36 vs 1.05), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.