ETF Versus

VHT vs XLV

Vanguard Health Care Index Fund ETF Shares vs State Street Health Care Select Sector SPDR ETF

Last updated: 2026-04-02

VHT

Vanguard Health Care Index Fund ETF Shares (VHT) is an exchange-traded fund that provides exposure to us sector - healthcare securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.71%. Launched in 2004, the fund has a 22-year track record.

AUM: $15.8B ER: 0.09% Yield: 1.71% Since: Jan 26, 2004
XLV

State Street Health Care Select Sector SPDR ETF (XLV) is an exchange-traded fund that provides exposure to us sector - healthcare securities. It charges a low expense ratio of 0.08%. The fund offers a moderate dividend yield of 1.70%. Launched in 1998, the fund has a 28-year track record.

AUM: $37.8B ER: 0.08% Yield: 1.70% Since: Dec 16, 1998

Quick Verdict

Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. VHT has edged ahead over the past year (5.6% vs 3.1%).

Key Metrics

Metric VHT XLV
Expense Ratio 0.09% 0.08%
Dividend Yield 1.7% 1.7%
Fund Family N/A N/A
Category US Sector - Healthcare US Sector - Healthcare

Performance Chart

Indexed to 100 at start (5-year comparison)

95 104 113 122 131 140 2021-04 2022-06 2023-09 2024-12 2026-04
VHT +19.4%
XLV +26.0%

Performance Comparison

Period VHT XLV Difference
1 Month -6.21% -6.81% +0.60%
3 Months -4.94% -5.00% +0.06%
6 Months +1.83% +2.01% -0.18%
YTD -4.94% -5.00% +0.06%
1 Year +5.61% +3.06% +2.55%
3 Years +14.00% +12.85% +1.15%
5 Years +19.40% +26.05% -6.65%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VHT Fees XLV Fees You Save
$10.000 10 years $179 $159 $20
$10.000 20 years $771 $686 $85
$10.000 30 years $2.486 $2.212 $273
$50.000 10 years $896 $797 $99
$50.000 30 years $12.428 $11.061 $1.366
$100.000 30 years $24.855 $22.123 $2.732

Risk Metrics

Based on 5 years of daily returns

Metric VHT XLV
Annualized Volatility 14.8% 14.6%
Max Drawdown -17.9% -18.1%
Sharpe Ratio 0.01 0.08

Dividend Comparison

Metric VHT XLV
Annual Dividend (per share) $4.70 $2.51
Dividend Yield 1.71% 1.70%
Distribution Frequency Quarterly Quarterly

Top Holdings

10 of top 10 holdings overlap (100% overlap in top holdings)

VHT Top Holdings

NameWeight
Eli Lilly and CompanyLLY12.54%
Johnson & JohnsonJNJ8.76%
AbbVie Inc.ABBV6.09%
Merck & Co., Inc.MRK4.56%
UnitedHealth Group IncorporatedUNH3.94%
Amgen Inc.AMGN3.10%
Abbott LaboratoriesABT3.00%
Thermo Fisher Scientific Inc.TMO2.91%
Gilead Sciences, Inc.GILD2.74%
Intuitive Surgical, Inc.ISRG2.65%

XLV Top Holdings

NameWeight
Eli Lilly and CompanyLLY13.74%
Johnson & JohnsonJNJ11.10%
AbbVie Inc.ABBV7.25%
Merck & Co., Inc.MRK5.63%
UnitedHealth Group IncorporatedUNH4.62%
Amgen Inc.AMGN3.57%
Thermo Fisher Scientific Inc.TMO3.48%
Abbott LaboratoriesABT3.37%
Gilead Sciences, Inc.GILD3.26%
Intuitive Surgical, Inc.ISRG3.09%

Which One Should You Choose?

Choose VHT if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Either works if...

you just need broad us sector - healthcare exposure. Both are solid options — pick whichever your brokerage offers commission-free.