XLV vs. VHT

Last updated Jun 16, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and VHT (Vanguard Health Care ETF) are both Health & Biotech Equities funds - XLV tracks the Health Care Select Sector Index while VHT tracks the MSCI US Investable Market Health Care 25/50 Index. Both are passively managed. Over the past 10 years, XLV returned 9.89%/yr vs 9.99%/yr for VHT. With a 0.97 correlation, they move nearly in lockstep. XLV charges 0.08%/yr vs 0.09%/yr for VHT.

Performance

XLV vs. VHT - 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 ETF (VHT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLV achieves a -0.83% return, which is significantly lower than VHT's -0.41% return. Both investments have delivered pretty close results over the past 10 years, with XLV having a 9.89% annualized return and VHT not far ahead at 9.99%.

XLV

• 1D: -0.60%
• 1M: 5.37%
• YTD: -0.83%
• 6M: -1.24%
• 1Y: 14.31%
• 3Y*: 6.73%
• 5Y*: 5.93%
• 10Y*: 9.89%

VHT

• 1D: -0.29%
• 1M: 5.54%
• YTD: -0.41%
• 6M: -0.95%
• 1Y: 16.15%
• 3Y*: 6.96%
• 5Y*: 4.83%
• 10Y*: 9.99%

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

XLV vs. VHT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	-0.83%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
VHT Vanguard Health Care ETF	-0.41%	15.46%	2.66%	2.52%	-5.60%	20.57%	18.29%	21.87%	5.58%	23.26%

Correlation

The correlation between XLV and VHT is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.97

The correlation between XLV and VHT has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.

XLV vs. VHT - Sectors Allocation Comparison

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

Return for Risk

XLV vs. VHT — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 29
XLV Sharpe Ratio Rank: 29
XLV Sortino Ratio Rank: 31
XLV Omega Ratio Rank: 27
XLV Calmar Ratio Rank: 31
XLV Martin Ratio Rank: 26

VHT

VHT Risk / Return Rank: 33
VHT Sharpe Ratio Rank: 34
VHT Sortino Ratio Rank: 36
VHT Omega Ratio Rank: 31
VHT Calmar Ratio Rank: 35
VHT Martin Ratio Rank: 30

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. VHT - 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 ETF (VHT). 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.

	XLV	VHT	Difference
Sharpe ratio: Return per unit of total volatility	0.96	1.10	-0.15
Sortino ratio: Return per unit of downside risk	1.54	1.74	-0.19
Omega ratio: Gain probability vs. loss probability	1.17	1.20	-0.02
Calmar ratio: Return relative to maximum drawdown	1.37	1.56	-0.19
Martin ratio: Return relative to average drawdown	3.28	3.87	-0.58

XLV vs. VHT - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 0.96, which is comparable to the VHT Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of XLV and VHT, 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

XLV vs. VHT - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, roughly equal to the maximum VHT drawdown of -39.12%. Use the drawdown chart below to compare losses from any high point for XLV and VHT.

Drawdown Indicators

	XLV	VHT	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-39.12%	-0.05%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-10.40%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-16.91%	-0.20%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-17.71%	+0.60%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-28.85%	+0.45%
Current Drawdown Current decline from peak	-4.17%	-3.56%	-0.61%
Average Drawdown Average peak-to-trough decline	-7.12%	-5.98%	-1.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.37%	4.19%	+0.18%

Volatility

XLV vs. VHT - Volatility Comparison

State Street Health Care Select Sector SPDR ETF (XLV) and Vanguard Health Care ETF (VHT) have volatilities of 4.96% and 4.89%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLV	VHT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.96%	4.89%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	10.58%	10.42%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	14.72%	+0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.75%	15.02%	-0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.58%	16.97%	-0.39%

XLV vs. VHT - Expense Ratio Comparison

XLV has a 0.08% expense ratio, which is lower than VHT's 0.09% 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

XLV vs. VHT - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.64%, which matches VHT's 1.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VHT Vanguard Health Care ETF	1.64%	1.61%	1.53%	1.36%	1.33%	1.14%	1.21%	1.89%	1.38%	1.31%	1.45%	1.22%
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 VHT in my portfolio?

With a correlation of 0.99, XLV and VHT 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 VHT?

XLV has higher volatility (4.96%) compared to VHT (4.89%). In terms of maximum drawdown, XLV dropped -39.17% vs VHT's -39.12%.

Which ETF is better, XLV or VHT?

On 10-year performance, VHT leads with 9.99% vs 9.89% for XLV. On fees, XLV is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLV or VHT?

Over the 10-year period, VHT has performed better with a 9.99% return vs 9.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLV or VHT?

XLV is cheaper with a 0.08% expense ratio, compared with 0.09% for VHT.

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

XLV and VHT have nearly identical dividend yields, around 1.64%.

What is the main difference between XLV and VHT?

XLV tracks Health Care Select Sector Index, while VHT tracks MSCI US Investable Market Health Care 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLV and 0.09% for VHT.

Which has better risk-adjusted returns?

VHT currently has the higher Sharpe Ratio (1.10 vs 0.96), 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.