VHT vs. XLV
Compare and contrast key facts about Vanguard Health Care ETF (VHT) and Health Care Select Sector SPDR Fund (XLV).
VHT and XLV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VHT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Health Care 25/50 Index. It was launched on Jan 26, 2004. XLV is a passively managed fund by State Street that tracks the performance of the Health Care Select Sector. It was launched on Dec 16, 1998. Both VHT and XLV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VHT or XLV.
Key characteristics
VHT | XLV | |
---|---|---|
YTD Return | 8.24% | 8.71% |
1Y Return | 16.90% | 17.86% |
3Y Return (Ann) | 7.27% | 9.62% |
5Y Return (Ann) | 11.01% | 11.93% |
10Y Return (Ann) | 11.31% | 11.51% |
Sharpe Ratio | 1.61 | 1.72 |
Daily Std Dev | 10.82% | 10.56% |
Max Drawdown | -39.12% | -39.18% |
Current Drawdown | -0.01% | 0.00% |
Correlation
The correlation between VHT and XLV is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VHT vs. XLV - Performance Comparison
In the year-to-date period, VHT achieves a 8.24% return, which is significantly lower than XLV's 8.71% return. Both investments have delivered pretty close results over the past 10 years, with VHT having a 11.31% annualized return and XLV not far ahead at 11.51%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
VHT vs. XLV - Expense Ratio Comparison
Risk-Adjusted Performance
VHT vs. XLV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Health Care ETF (VHT) and Health Care Select Sector SPDR Fund (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.
Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
---|---|---|---|---|---|
Vanguard Health Care ETF | 1.61 | ||||
Health Care Select Sector SPDR Fund | 1.72 |
Dividends
VHT vs. XLV - Dividend Comparison
VHT's dividend yield for the trailing twelve months is around 1.28%, less than XLV's 1.49% yield.
TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Vanguard Health Care ETF | 1.28% | 1.36% | 1.33% | 1.14% | 1.21% | 1.89% | 1.38% | 1.31% | 1.45% | 1.22% | 1.02% | 1.12% |
Health Care Select Sector SPDR Fund | 1.49% | 1.59% | 1.47% | 1.33% | 1.49% | 2.16% | 1.56% | 1.46% | 1.59% | 1.43% | 1.34% | 1.51% |
Drawdowns
VHT vs. XLV - Drawdown Comparison
The maximum VHT drawdown since its inception was -39.12%, roughly equal to the maximum XLV drawdown of -39.18%. The drawdown chart below compares losses from any high point along the way for VHT and XLV
Volatility
VHT vs. XLV - Volatility Comparison
Vanguard Health Care ETF (VHT) has a higher volatility of 2.77% compared to Health Care Select Sector SPDR Fund (XLV) at 2.51%. This indicates that VHT's price experiences larger fluctuations and is considered to be riskier than XLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.