XLV vs. VEU

Last updated Jun 9, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - XLV is a Health & Biotech Equities fund tracking the Health Care Select Sector Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, XLV returned 9.65%/yr vs 9.86%/yr for VEU. A 0.62 correlation means they provide meaningful diversification when combined. XLV charges 0.08%/yr vs 0.04%/yr for VEU.

Performance

XLV vs. VEU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Health Care Select Sector SPDR ETF (XLV) and Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLV achieves a -0.98% return, which is significantly lower than VEU's 11.45% return. Both investments have delivered pretty close results over the past 10 years, with XLV having a 9.65% annualized return and VEU not far ahead at 9.86%.

XLV

• 1D: -0.24%
• 1M: 6.38%
• YTD: -0.98%
• 6M: 1.65%
• 1Y: 15.62%
• 3Y*: 7.16%
• 5Y*: 6.05%
• 10Y*: 9.65%

VEU

• 1D: 0.90%
• 1M: -1.72%
• YTD: 11.45%
• 6M: 13.84%
• 1Y: 27.37%
• 3Y*: 18.27%
• 5Y*: 8.16%
• 10Y*: 9.86%

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

XLV vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	-0.98%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
VEU Vanguard FTSE All-World ex-US ETF	11.45%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between XLV and VEU is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Mar 8, 2007	0.62

Over the past year, the correlation between XLV and VEU has dropped to 0.38 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.

XLV vs. VEU - Sectors Allocation Comparison

Sectors	XLV	VEU
Healthcare	100.0%	7.1%
Basic Materials	-	7.1%
Communication Services	-	4.6%
Consumer Cyclical	-	8.2%
Consumer Defensive	-	5.1%
Energy	-	5.2%
Financial Services	-	23.3%
Industrials	-	15.7%
Real Estate	-	2.0%
Technology	-	18.5%
Utilities	-	3.2%

Return for Risk

XLV vs. VEU — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 32
XLV Sharpe Ratio Rank: 32
XLV Sortino Ratio Rank: 34
XLV Omega Ratio Rank: 31
XLV Calmar Ratio Rank: 33
XLV Martin Ratio Rank: 28

VEU

VEU Risk / Return Rank: 56
VEU Sharpe Ratio Rank: 57
VEU Sortino Ratio Rank: 55
VEU Omega Ratio Rank: 58
VEU Calmar Ratio Rank: 54
VEU Martin Ratio Rank: 58

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.

XLV vs. VEU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Health Care Select Sector SPDR ETF (XLV) and Vanguard FTSE All-World ex-US ETF (VEU). 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.

	XLV	VEU	Difference
Sharpe ratio: Return per unit of total volatility	1.05	1.74	-0.69
Sortino ratio: Return per unit of downside risk	1.68	2.39	-0.72
Omega ratio: Gain probability vs. loss probability	1.19	1.32	-0.13
Calmar ratio: Return relative to maximum drawdown	1.50	2.41	-0.91
Martin ratio: Return relative to average drawdown	3.60	9.28	-5.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLV vs. VEU - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 1.05, which is lower than the VEU Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of XLV and VEU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLV	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.05	1.74	-0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.51	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.57	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.25	+0.22

Drawdowns

XLV vs. VEU - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for XLV and VEU.

Drawdown Indicators

	XLV	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-61.52%	+22.35%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-11.43%	+0.96%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-13.69%	-3.42%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-29.31%	+12.20%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-34.98%	+6.58%
Current Drawdown Current decline from peak	-4.32%	-3.69%	-0.63%
Average Drawdown Average peak-to-trough decline	-7.12%	-13.13%	+6.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	2.96%	+1.39%

Volatility

XLV vs. VEU - Volatility Comparison

The current volatility for State Street Health Care Select Sector SPDR ETF (XLV) is 5.02%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.07%. This indicates that XLV experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLV	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.02%	6.07%	-1.05%
Volatility (6M) Calculated over the trailing 6-month period	10.66%	13.65%	-2.99%
Volatility (1Y) Calculated over the trailing 1-year period	14.99%	15.80%	-0.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.76%	16.16%	-1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.58%	17.25%	-0.67%

XLV vs. VEU - Expense Ratio Comparison

XLV has a 0.08% expense ratio, which is higher than VEU's 0.04% 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

XLV vs. VEU - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.64%, less than VEU's 2.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEU Vanguard FTSE All-World ex-US ETF	2.68%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%
XLV State Street Health Care Select Sector SPDR ETF	1.64%	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 XLV and VEU in my portfolio?

XLV and VEU have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLV or VEU?

VEU has higher volatility (6.07%) compared to XLV (5.02%). In terms of maximum drawdown, XLV dropped -39.17% vs VEU's -61.52%.

Which ETF is better, XLV or VEU?

On 10-year performance, VEU leads with 9.86% vs 9.65% for XLV. On fees, VEU is cheaper at 0.04% per year. On volatility, XLV has been the lower-risk option at 5.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLV or VEU?

Over the 10-year period, VEU has performed better with a 9.86% return vs 9.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLV or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.08% for XLV.

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

VEU has the higher dividend yield at 2.68%, compared with 1.64% for XLV.

What is the main difference between XLV and VEU?

XLV is categorized as Health & Biotech Equities, while VEU is Foreign Large Cap Equities. XLV tracks Health Care Select Sector Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLV and 0.04% for VEU.

Which has better risk-adjusted returns?

VEU currently has the higher Sharpe Ratio (1.74 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.