VHCIX vs. XLV

Last updated Jun 23, 2026

VHCIX (Vanguard Health Care Index Fund Admiral Shares) and XLV (State Street Health Care Select Sector SPDR ETF) are both Health & Biotech Equities funds. Over the past 10 years, VHCIX returned 9.71%/yr vs 9.86%/yr for XLV. With a 0.97 correlation, they move nearly in lockstep. VHCIX charges 0.10%/yr vs 0.08%/yr for XLV.

Performance

VHCIX vs. XLV - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with VHCIX having a -2.19% return and XLV slightly lower at -2.23%. Both investments have delivered pretty close results over the past 10 years, with VHCIX having a 9.71% annualized return and XLV not far ahead at 9.86%.

VHCIX

• 1D: -0.57%
• 1M: 0.42%
• YTD: -2.19%
• 6M: -2.89%
• 1Y: 16.75%
• 3Y*: 6.29%
• 5Y*: 4.52%
• 10Y*: 9.71%

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)

VHCIX vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VHCIX Vanguard Health Care Index Fund Admiral Shares	-2.19%	15.43%	2.64%	2.48%	-5.50%	20.56%	18.22%	21.97%	5.55%	23.35%
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 VHCIX and XLV is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.97

The correlation between VHCIX and XLV has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

VHCIX vs. XLV - Sectors Allocation Comparison

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

Return for Risk

VHCIX vs. XLV — Risk / Return Rank

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

VHCIX

VHCIX Risk / Return Rank: 18
VHCIX Sharpe Ratio Rank: 18
VHCIX Sortino Ratio Rank: 20
VHCIX Omega Ratio Rank: 16
VHCIX Calmar Ratio Rank: 21
VHCIX Martin Ratio Rank: 15

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.

VHCIX vs. XLV - Risk-Adjusted Trends Comparison

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

	VHCIX	XLV	Difference
Sharpe ratio: Return per unit of total volatility	1.11	1.05	+0.06
Sortino ratio: Return per unit of downside risk	1.75	1.67	+0.08
Omega ratio: Gain probability vs. loss probability	1.20	1.19	+0.01
Calmar ratio: Return relative to maximum drawdown	1.57	1.51	+0.07
Martin ratio: Return relative to average drawdown	3.87	3.56	+0.31

VHCIX vs. XLV - Sharpe Ratio Comparison

The current VHCIX Sharpe Ratio is 1.11, which is comparable to the XLV Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of VHCIX 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

VHCIX vs. XLV - Drawdown Comparison

The maximum VHCIX drawdown since its inception was -39.12%, roughly equal to the maximum XLV drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for VHCIX and XLV.

Drawdown Indicators

	VHCIX	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-39.12%	-39.17%	+0.05%
Max Drawdown (1Y) Largest decline over 1 year	-10.39%	-10.47%	+0.08%
Max Drawdown (3Y) Largest decline over 3 years	-16.89%	-17.11%	+0.22%
Max Drawdown (5Y) Largest decline over 5 years	-17.77%	-17.11%	-0.66%
Max Drawdown (10Y) Largest decline over 10 years	-28.58%	-28.40%	-0.18%
Current Drawdown Current decline from peak	-5.31%	-5.53%	+0.22%
Average Drawdown Average peak-to-trough decline	-5.97%	-7.12%	+1.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.20%	4.42%	-0.22%

Volatility

VHCIX vs. XLV - Volatility Comparison

Vanguard Health Care Index Fund Admiral Shares (VHCIX) and State Street Health Care Select Sector SPDR ETF (XLV) have volatilities of 4.93% and 5.14%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VHCIX	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.93%	5.14%	-0.21%
Volatility (6M) Calculated over the trailing 6-month period	10.43%	10.58%	-0.15%
Volatility (1Y) Calculated over the trailing 1-year period	14.70%	15.06%	-0.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.06%	14.76%	+0.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.95%	16.59%	+0.36%

VHCIX vs. XLV - Expense Ratio Comparison

VHCIX has a 0.10% 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

VHCIX vs. XLV - Dividend Comparison

VHCIX's dividend yield for the trailing twelve months is around 1.67%, less than XLV's 2.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VHCIX Vanguard Health Care Index Fund Admiral Shares	1.67%	1.61%	1.53%	1.36%	1.33%	1.19%	1.21%	1.89%	1.38%	1.31%	1.45%	1.22%
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 VHCIX and XLV in my portfolio?

With a correlation of 0.98, VHCIX 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, VHCIX or XLV?

XLV has higher volatility (5.14%) compared to VHCIX (4.93%). In terms of maximum drawdown, VHCIX dropped -39.12% vs XLV's -39.17%.

Which has better risk-adjusted returns?

VHCIX currently has the higher Sharpe Ratio (1.11 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.