VPU vs. XLV
Compare and contrast key facts about Vanguard Utilities ETF (VPU) and Health Care Select Sector SPDR Fund (XLV).
VPU and XLV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VPU is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Utilities 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 VPU 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: VPU or XLV.
Key characteristics
| VPU | XLV | |
|---|---|---|
| YTD Return | 6.76% | 2.97% |
| 1Y Return | 1.40% | 7.98% |
| 3Y Return (Ann) | 3.31% | 5.96% |
| 5Y Return (Ann) | 5.61% | 11.39% |
| 10Y Return (Ann) | 7.85% | 11.05% |
| Sharpe Ratio | -0.06 | 0.60 |
| Daily Std Dev | 17.08% | 10.69% |
| Max Drawdown | -46.31% | -39.18% |
| Current Drawdown | -9.10% | -5.29% |
Correlation
The correlation between VPU and XLV is 0.49, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VPU vs. XLV - Performance Comparison
In the year-to-date period, VPU achieves a 6.76% return, which is significantly higher than XLV's 2.97% return. Over the past 10 years, VPU has underperformed XLV with an annualized return of 7.85%, while XLV has yielded a comparatively higher 11.05% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VPU vs. XLV - Expense Ratio Comparison
VPU has a 0.10% expense ratio, which is lower than XLV's 0.12% 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%.
Risk-Adjusted Performance
VPU vs. XLV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) 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.
Dividends
VPU vs. XLV - Dividend Comparison
VPU's dividend yield for the trailing twelve months is around 3.26%, more than XLV's 1.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VPU Vanguard Utilities ETF | 3.26% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% | 3.02% | 3.76% |
XLV Health Care Select Sector SPDR Fund | 1.57% | 1.59% | 1.47% | 1.33% | 1.49% | 2.16% | 1.56% | 1.46% | 1.59% | 1.43% | 1.34% | 1.51% |
Drawdowns
VPU vs. XLV - Drawdown Comparison
The maximum VPU drawdown since its inception was -46.31%, which is greater than XLV's maximum drawdown of -39.18%. Use the drawdown chart below to compare losses from any high point for VPU and XLV. For additional features, visit the drawdowns tool.
Volatility
VPU vs. XLV - Volatility Comparison
Vanguard Utilities ETF (VPU) has a higher volatility of 4.89% compared to Health Care Select Sector SPDR Fund (XLV) at 3.79%. This indicates that VPU'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.