VGHCX vs. XLV

Last updated Aug 2, 2026

VGHCX (Vanguard Health Care Fund Investor Shares) and XLV (State Street Health Care Select Sector SPDR ETF) are both Health & Biotech Equities funds. VGHCX is actively managed, while XLV is passively managed. Over the past 10 years, VGHCX returned 9.32%/yr vs 9.81%/yr for XLV. Their correlation of 0.85 means they have usually moved in the same direction. VGHCX charges 0.33%/yr vs 0.08%/yr for XLV.

Performance

VGHCX vs. XLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Health Care Fund Investor Shares (VGHCX) 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, VGHCX achieves a 4.43% return, which is significantly lower than XLV's 5.90% return. Over the past 10 years, VGHCX has underperformed XLV with an annualized return of 9.32%, while XLV has yielded a comparatively higher 9.81% annualized return.

VGHCX

• 1D: -1.27%
• 1M: -2.84%
• 6M: 4.38%
• YTD: 4.43%
• 1Y: 28.58%
• 3Y*: 11.51%
• 5Y*: 7.89%
• 10Y*: 9.32%
• ALL TIME*: 14.60%

XLV

• 1D: -0.59%
• 1M: -0.73%
• 6M: 5.94%
• YTD: 5.90%
• 1Y: 26.13%
• 3Y*: 8.60%
• 5Y*: 5.93%
• 10Y*: 9.81%
• ALL TIME*: 8.63%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VGHCX Vanguard Health Care Fund Investor Shares	$0.00	$0.00	$0.00
XLV State Street Health Care Select Sector SPDR ETF	$1.43B	$1.62B	$1.62B

VGHCX vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGHCX Vanguard Health Care Fund Investor Shares	4.43%	19.63%	8.99%	5.46%	-1.05%	14.36%	12.57%	22.93%	1.03%	19.59%
XLV State Street Health Care Select Sector SPDR ETF	5.90%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%

Correlation

The correlation between VGHCX and XLV is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (3Y) Balances recent behavior with more history.	0.90
Correlation (5Y) Shows whether the relationship held over a longer period.	0.91
Correlation (10Y) Provides a long-term view across more market conditions.	0.91
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.85

The correlation between VGHCX and XLV has been stable across timeframes, ranging from 0.85 to 0.93 - a consistent structural relationship.

VGHCX vs. XLV - Sectors Allocation Comparison

Sectors	VGHCX	XLV
Healthcare	99.5%	99.4%
Consumer Defensive	1.2%	-
Financial Services	0.0%	-
Basic Materials	0.0%	-
Communication Services	-	-
Consumer Cyclical	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	0.5%
Utilities	-	-

Return for Risk

VGHCX vs. XLV — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGHCX

VGHCX Risk / Return Rank: 75
VGHCX Sharpe Ratio Rank: 77
VGHCX Sortino Ratio Rank: 79
VGHCX Omega Ratio Rank: 72
VGHCX Calmar Ratio Rank: 86
VGHCX Martin Ratio Rank: 62

XLV

XLV Risk / Return Rank: 72
XLV Sharpe Ratio Rank: 76
XLV Sortino Ratio Rank: 83
XLV Omega Ratio Rank: 72
XLV Calmar Ratio Rank: 74
XLV Martin Ratio Rank: 53

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGHCX vs. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care Fund Investor Shares (VGHCX) 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.

	VGHCX	XLV	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.72	+0.04
Sortino ratio: Return per unit of downside risk	2.68	2.70	-0.03
Omega ratio: Gain probability vs. loss probability	1.31	1.30	+0.01
Calmar ratio: Return relative to maximum drawdown	2.95	2.57	+0.38
Martin ratio: Return relative to average drawdown	7.76	6.15	+1.61

VGHCX vs. XLV - Sharpe Ratio Comparison

The current VGHCX Sharpe Ratio is 1.76, which is comparable to the XLV Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of VGHCX 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

VGHCX vs. XLV - Drawdown Comparison

The maximum VGHCX drawdown since its inception was -36.93%, smaller than the maximum XLV drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for VGHCX and XLV.

Drawdown Indicators

	VGHCX	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-36.93%	-39.17%	+2.24%
Max Drawdown (1Y) Largest decline over 1 year	-9.20%	-10.47%	+1.27%
Max Drawdown (3Y) Largest decline over 3 years	-16.08%	-17.11%	+1.03%
Max Drawdown (5Y) Largest decline over 5 years	-16.95%	-17.11%	+0.16%
Max Drawdown (10Y) Largest decline over 10 years	-27.18%	-28.40%	+1.22%
Current Drawdown Current decline from peak	-3.46%	-2.82%	-0.64%
Average Drawdown Average peak-to-trough decline	-5.24%	-7.09%	+1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.49%	4.37%	-0.88%

Volatility

VGHCX vs. XLV - Volatility Comparison

The current volatility for Vanguard Health Care Fund Investor Shares (VGHCX) is 5.44%, while State Street Health Care Select Sector SPDR ETF (XLV) has a volatility of 6.03%. This indicates that VGHCX 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

	VGHCX	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.44%	6.03%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	11.65%	12.07%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	15.39%	15.90%	-0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.40%	15.04%	+3.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.67%	16.66%	+1.01%

VGHCX vs. XLV - Expense Ratio Comparison

VGHCX has a 0.33% expense ratio, which is higher than XLV's 0.08% expense ratio.

Dividends

VGHCX vs. XLV - Dividend Comparison

VGHCX's dividend yield for the trailing twelve months is around 6.33%, more than XLV's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHCX Vanguard Health Care Fund Investor Shares	6.33%	6.00%	22.72%	7.17%	5.44%	8.31%	7.96%	11.82%	9.10%	7.30%	8.54%	8.16%
XLV State Street Health Care Select Sector SPDR ETF	1.56%	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 VGHCX and XLV in my portfolio?

With a correlation of 0.93, VGHCX 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, VGHCX or XLV?

XLV has higher volatility (6.03%) compared to VGHCX (5.44%). In terms of maximum drawdown, VGHCX dropped -36.93% vs XLV's -39.17%.

Which has better risk-adjusted returns?

VGHCX currently has the higher Sharpe Ratio (1.76 vs 1.72), 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.