XLV vs. VGHCX

Last updated Jun 4, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and VGHCX (Vanguard Health Care Fund Investor Shares) are both Health & Biotech Equities funds. Over the past 10 years, XLV returned 9.20%/yr vs 8.79%/yr for VGHCX. Their correlation of 0.84 suggests significant overlap in exposure. XLV charges 0.08%/yr vs 0.30%/yr for VGHCX.

Performance

XLV vs. VGHCX - 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 Health Care Fund Investor Shares (VGHCX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLV achieves a -4.29% return, which is significantly higher than VGHCX's -4.67% return. Both investments have delivered pretty close results over the past 10 years, with XLV having a 9.20% annualized return and VGHCX not far behind at 8.79%.

XLV

• 1D: 0.79%
• 1M: 1.95%
• YTD: -4.29%
• 6M: -4.06%
• 1Y: 12.89%
• 3Y*: 5.98%
• 5Y*: 5.55%
• 10Y*: 9.20%

VGHCX

• 1D: -1.56%
• 1M: -1.40%
• YTD: -4.67%
• 6M: -4.29%
• 1Y: 16.18%
• 3Y*: 8.30%
• 5Y*: 7.16%
• 10Y*: 8.79%

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

XLV vs. VGHCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	-4.29%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
VGHCX Vanguard Health Care Fund Investor Shares	-4.67%	19.63%	8.99%	5.46%	-1.05%	14.36%	12.57%	22.93%	1.03%	19.59%

Correlation

The correlation between XLV and VGHCX is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Dec 23, 1998	0.84

The correlation between XLV and VGHCX has been stable across timeframes, ranging from 0.84 to 0.92 - a consistent structural relationship.

XLV vs. VGHCX - Sectors Allocation Comparison

Sectors	XLV	VGHCX
Healthcare	100.0%	97.8%
Basic Materials	-	0.0%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	1.2%
Energy	-	-
Financial Services	-	0.0%
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLV vs. VGHCX — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 24
XLV Sharpe Ratio Rank: 24
XLV Sortino Ratio Rank: 26
XLV Omega Ratio Rank: 23
XLV Calmar Ratio Rank: 26
XLV Martin Ratio Rank: 23

VGHCX

VGHCX Risk / Return Rank: 17
VGHCX Sharpe Ratio Rank: 15
VGHCX Sortino Ratio Rank: 16
VGHCX Omega Ratio Rank: 14
VGHCX Calmar Ratio Rank: 22
VGHCX Martin Ratio Rank: 16

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. VGHCX - 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 Health Care Fund Investor Shares (VGHCX). 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	VGHCX	Difference
Sharpe ratio: Return per unit of total volatility	0.88	1.08	-0.20
Sortino ratio: Return per unit of downside risk	1.42	1.67	-0.26
Omega ratio: Gain probability vs. loss probability	1.16	1.19	-0.03
Calmar ratio: Return relative to maximum drawdown	1.24	1.73	-0.49
Martin ratio: Return relative to average drawdown	2.99	4.60	-1.61
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. VGHCX - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 0.88, which is comparable to the VGHCX Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of XLV and VGHCX, 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	VGHCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.88	1.08	-0.20
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.38	0.40	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.50	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.92	-0.47

Drawdowns

XLV vs. VGHCX - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, which is greater than VGHCX's maximum drawdown of -36.93%. Use the drawdown chart below to compare losses from any high point for XLV and VGHCX.

Drawdown Indicators

	XLV	VGHCX	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-36.93%	-2.24%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-9.20%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-16.08%	-1.03%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-16.95%	-0.16%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-27.18%	-1.22%
Current Drawdown Current decline from peak	-7.52%	-7.61%	+0.09%
Average Drawdown Average peak-to-trough decline	-7.12%	-5.25%	-1.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	3.44%	+0.88%

Volatility

XLV vs. VGHCX - Volatility Comparison

State Street Health Care Select Sector SPDR ETF (XLV) has a higher volatility of 4.10% compared to Vanguard Health Care Fund Investor Shares (VGHCX) at 3.79%. This indicates that XLV's price experiences larger fluctuations and is considered to be riskier than VGHCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLV	VGHCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.10%	3.79%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	10.24%	10.35%	-0.11%
Volatility (1Y) Calculated over the trailing 1-year period	14.67%	14.75%	-0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.69%	18.21%	-3.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.55%	17.64%	-1.09%

XLV vs. VGHCX - Expense Ratio Comparison

XLV has a 0.08% expense ratio, which is lower than VGHCX's 0.30% expense ratio.

Dividends

XLV vs. VGHCX - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.70%, less than VGHCX's 6.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGHCX Vanguard Health Care Fund Investor Shares	6.93%	6.00%	22.72%	7.17%	5.44%	8.31%	7.96%	11.82%	9.10%	7.30%	8.54%	8.16%
XLV State Street Health Care Select Sector SPDR ETF	1.70%	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 VGHCX in my portfolio?

With a correlation of 0.92, XLV and VGHCX 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, XLV or VGHCX?

XLV has higher volatility (4.10%) compared to VGHCX (3.79%). In terms of maximum drawdown, XLV dropped -39.17% vs VGHCX's -36.93%.

Which has better risk-adjusted returns?

VGHCX currently has the higher Sharpe Ratio (1.08 vs 0.88), 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.