VO vs. XLV

Last updated Jun 14, 2026

VO (Vanguard Mid-Cap ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while XLV is a Health & Biotech Equities fund tracking the Health Care Select Sector Index. Both are passively managed. Over the past 10 years, VO returned 11.77%/yr vs 9.81%/yr for XLV. A 0.68 correlation means they provide meaningful diversification when combined. VO charges 0.03%/yr vs 0.08%/yr for XLV.

Performance

VO vs. XLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mid-Cap ETF (VO) 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, VO achieves a 10.43% return, which is significantly higher than XLV's -0.23% return. Over the past 10 years, VO has outperformed XLV with an annualized return of 11.77%, while XLV has yielded a comparatively lower 9.81% annualized return.

VO

• 1D: 0.97%
• 1M: 2.97%
• YTD: 10.43%
• 6M: 9.31%
• 1Y: 19.60%
• 3Y*: 15.74%
• 5Y*: 7.79%
• 10Y*: 11.77%

XLV

• 1D: -0.18%
• 1M: 4.90%
• YTD: -0.23%
• 6M: 0.67%
• 1Y: 15.00%
• 3Y*: 7.12%
• 5Y*: 6.00%
• 10Y*: 9.81%

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

VO vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VO Vanguard Mid-Cap ETF	10.43%	11.62%	15.31%	16.03%	-18.73%	24.70%	18.10%	30.98%	-9.24%	19.28%
XLV State Street Health Care Select Sector SPDR ETF	-0.23%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%

Correlation

The correlation between VO and XLV is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.68

Over the past year, the correlation between VO and XLV has dropped to 0.45 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.

VO vs. XLV - Sectors Allocation Comparison

Sectors	VO	XLV
Technology	18.6%	-
Industrials	17.9%	-
Financial Services	12.8%	-
Consumer Cyclical	8.6%	-
Energy	8.5%	-
Utilities	8.3%	-
Healthcare	7.6%	100.0%
Real Estate	5.4%	-
Consumer Defensive	4.8%	-
Basic Materials	4.2%	-
Communication Services	3.1%	-

Return for Risk

VO vs. XLV — Risk / Return Rank

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

VO

VO Risk / Return Rank: 49
VO Sharpe Ratio Rank: 47
VO Sortino Ratio Rank: 46
VO Omega Ratio Rank: 44
VO Calmar Ratio Rank: 51
VO Martin Ratio Rank: 55

XLV

XLV Risk / Return Rank: 30
XLV Sharpe Ratio Rank: 30
XLV Sortino Ratio Rank: 33
XLV Omega Ratio Rank: 28
XLV Calmar Ratio Rank: 32
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.

VO vs. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.

	VO	XLV	Difference
Sharpe ratio: Return per unit of total volatility	1.43	0.97	+0.47
Sortino ratio: Return per unit of downside risk	2.05	1.55	+0.50
Omega ratio: Gain probability vs. loss probability	1.25	1.17	+0.08
Calmar ratio: Return relative to maximum drawdown	2.23	1.38	+0.85
Martin ratio: Return relative to average drawdown	8.44	3.31	+5.12

VO vs. XLV - Sharpe Ratio Comparison

The current VO Sharpe Ratio is 1.43, which is higher than the XLV Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of VO 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

VO vs. XLV - Drawdown Comparison

The maximum VO drawdown since its inception was -58.87%, which is greater than XLV's maximum drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for VO and XLV.

Drawdown Indicators

	VO	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-58.87%	-39.17%	-19.70%
Max Drawdown (1Y) Largest decline over 1 year	-8.17%	-10.47%	+2.30%
Max Drawdown (3Y) Largest decline over 3 years	-19.02%	-17.11%	-1.91%
Max Drawdown (5Y) Largest decline over 5 years	-27.57%	-17.11%	-10.46%
Max Drawdown (10Y) Largest decline over 10 years	-39.37%	-28.40%	-10.97%
Current Drawdown Current decline from peak	-0.45%	-3.59%	+3.14%
Average Drawdown Average peak-to-trough decline	-7.85%	-7.12%	-0.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.16%	4.37%	-2.21%

Volatility

VO vs. XLV - Volatility Comparison

The current volatility for Vanguard Mid-Cap ETF (VO) is 4.31%, while State Street Health Care Select Sector SPDR ETF (XLV) has a volatility of 4.90%. This indicates that VO 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

	VO	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	4.90%	-0.59%
Volatility (6M) Calculated over the trailing 6-month period	9.71%	10.60%	-0.89%
Volatility (1Y) Calculated over the trailing 1-year period	12.74%	15.03%	-2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.65%	14.75%	+2.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.96%	16.58%	+2.38%

VO vs. XLV - Expense Ratio Comparison

VO has a 0.03% expense ratio, which is lower than XLV's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VO vs. XLV - Dividend Comparison

VO's dividend yield for the trailing twelve months is around 1.36%, less than XLV's 1.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VO Vanguard Mid-Cap ETF	1.36%	1.52%	1.49%	1.52%	1.60%	1.12%	1.45%	1.48%	1.82%	1.35%	1.45%	1.47%
XLV State Street Health Care Select Sector SPDR ETF	1.63%	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 VO and XLV in my portfolio?

VO and XLV have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VO or XLV?

XLV has higher volatility (4.90%) compared to VO (4.31%). In terms of maximum drawdown, VO dropped -58.87% vs XLV's -39.17%.

Which ETF is better, VO or XLV?

On 10-year performance, VO leads with 11.77% vs 9.81% for XLV. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VO or XLV?

Over the 10-year period, VO has performed better with a 11.77% return vs 9.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VO or XLV?

VO is cheaper with a 0.03% expense ratio, compared with 0.08% for XLV.

Which ETF pays a higher dividend yield, VO or XLV?

XLV has the higher dividend yield at 1.63%, compared with 1.36% for VO.

What is the main difference between VO and XLV?

VO is categorized as Mid Cap Blend Equities, while XLV is Health & Biotech Equities. VO tracks CRSP US Mid Cap Index, while XLV tracks Health Care Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VO and 0.08% for XLV.

Which has better risk-adjusted returns?

VO currently has the higher Sharpe Ratio (1.43 vs 0.97), 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.