ETF Comparison

VHT vs XLV: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Health Care ETF and State Street Health Care Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

VHTInvestors who want broad equity exposure.
XLVInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	VHT	XLV
Full name	Vanguard Health Care ETF	State Street Health Care Select Sector SPDR ETF
Issuer	Vanguard	State Street
Last Close	$314.70 as of August 14, 2026	$167.37 as of August 14, 2026
Distribution yield	1.25%	1.57%
Distribution Safety Score™	100	100
Expense ratio	0.10%	0.09%
AUM	$18.3B	$41.9B
Distribution frequency	Quarterly	Quarterly
Underlying index	MSCI US Investable Market Health Care 25/50 Index	Health Care Select Sector Index
Objective	Tracks the MSCI US Investable Market Health Care 25/50 Index.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Equity	Equity
Inception date	01/26/2004	12/16/1998
Beta	0.57	0.51
Last dividend	$0.9870	$0.6560
Ex-dividend date	06/24/2026	06/22/2026

Bottom lineVHT and XLV are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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Vanguard

ETFs116

Total AUM$4658B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VHT.

See all Vanguard ETFs

State Street

ETFs180

Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLV.

See all State Street ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VHT has outpaced XLV over the trailing twelve months, posting a 29.28% total return against 27.76%. The lead holds up over 10 years too: VHT has compounded at 10.29% a year, against 10.20% for XLV. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Jan 2004	Volatility	Sharpe	Sortino	Max drawdown
VHT	9.77%	29.28%	9.80%	5.62%	10.29%	10.04%	14.4%	0.34	0.48	-16.9%
XLV	8.54%	27.76%	8.95%	6.30%	10.20%	9.58%	14.5%	0.28	0.40	-17.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2004” measures every fund from January 30, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

VHT (Vanguard Health Care ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLV offers the higher yield at 1.57% vs 1.25% for VHT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLV is cheaper with an expense ratio of 0.09% compared to 0.10%.

They track different benchmarks: VHT is linked to MSCI US Investable Market Health Care 25/50 Index while XLV tracks Health Care Select Sector Index, which means their performance drivers differ.

XLV is the larger fund by assets ($41.9B), which generally means tighter spreads and better liquidity.

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Deep dive

Yield & income

On a $10,000 investment, VHT would generate roughly $10.42/month, while XLV would produce $13.08/month, at current distribution rates. Both pay quarterly distributions.

VHT yield1.25%

XLV yield1.57%

Monthly diff on $10K$2.67

Cost & efficiency

Over 10 years on $10,000, VHT would cost approximately $100 in fees vs $90 for XLV (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VHT ER0.10%

XLV ER0.09%

Strategy & risk

VHT tracks MSCI US Investable Market Health Care 25/50 Index, while XLV tracks Health Care Select Sector Index with an index approach. Beta is 0.57 for VHT and 0.51 for XLV, indicating XLV is less volatile relative to the market.

VHT beta0.57

XLV beta0.51

Fund details

VHT is managed by Vanguard (launched 01/26/2004) with $18.3B in assets. XLV is managed by State Street (launched 12/16/1998) with $41.9B in assets.

VHT AUM$18.3B

XLV AUM$41.9B

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Frequently asked questions

What is the current distribution yield for VHT and XLV?

VHT currently distributes 1.25% and XLV 1.57%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VHT or XLV better for dividend income?

It depends on your goals. XLV currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VHT and XLV?

VHT (Vanguard Health Care ETF) tracks MSCI US Investable Market Health Care 25/50 Index, while XLV (State Street Health Care Select Sector SPDR ETF) tracks Health Care Select Sector Index with an index approach. They are issued by Vanguard and State Street respectively.

Can I hold both VHT and XLV?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is VHT or XLV safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: VHT scores 100, XLV scores 100. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VHT or XLV?

VHT has an expense ratio of 0.10% while XLV charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VHT vs XLV generate?

At current rates, $10,000 in VHT would generate roughly $10.42 per month ($125.00 annually). The same in XLV would produce about $13.08 per month ($157.00 annually).

Which has performed better historically, VHT or XLV?

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VHT vs XLV — at a glance

Generated August 15, 2026.

Overview

VHT and XLV are both equity ETFs that track healthcare sectors of the US market, but they differ in scope and index construction. VHT tracks the MSCI US Investable Market Health Care 25/50 Index, which includes mid-cap and small-cap healthcare stocks alongside large-cap names. XLV tracks the Health Care Select Sector Index, which focuses on the healthcare component of the S&P 500, making it a large-cap concentrated play. The key distinction: VHT is broader; XLV is narrower and deeper into mega-cap exposure.

How they differ

XLV holds $41.9B in assets versus VHT's $18.3B, giving it roughly 2.3x the liquidity and tighter bid-ask spreads. The largest structural difference is index composition: XLV's Select Sector Index pulls only from the S&P 500, so it excludes mid and small-cap healthcare names that VHT captures through the MSCI index. That difference shows in beta—VHT's 0.57 versus XLV's 0.51—suggesting VHT has modestly higher market sensitivity, likely reflecting its exposure to smaller-cap volatility. On yield, XLV edges higher at 1.57% distribution rate versus VHT's 1.25%, though both pay quarterly. Expense ratios are nearly identical at 0.10% for VHT and 0.09% for XLV.

Who each is best for

VHT: Fits investors seeking diversified healthcare exposure across market capitalizations who tolerate moderate market sensitivity and value access to mid- and small-cap healthcare innovators alongside established leaders.

XLV: Fits investors who want large-cap healthcare stability and are comfortable with S&P 500–only composition, often preferring the simplicity of Select Sector indexing and higher absolute yield.

Key risks to know

Index concentration: XLV's S&P 500–only constraint means it excludes potentially faster-growing mid-cap and small-cap healthcare firms captured by VHT's MSCI index. If smaller healthcare names outperform, XLV's narrower mandate could drag relative returns.

Sector-level cyclicality: Both funds carry healthcare sector risk: regulatory changes, drug pricing pressure, clinical trial failures, and reimbursement shifts affect all holdings. A sector downturn will compress both portfolios.

Overlap and correlation: Large-cap healthcare names will appear in both funds (Pfizer, Merck, UnitedHealth Group, Eli Lilly, and similar), so their price movements may correlate more than their different indexes suggest. Holding both offers limited diversification benefit.

VHT's smaller AUM: With $18.3B versus XLV's $41.9B, VHT faces wider bid-ask spreads and lower trading liquidity, which can increase transaction costs for large positions.

Bottom line

If you want broad healthcare exposure spanning large, mid, and small caps, VHT's MSCI index provides it at minimal cost and a lower beta. If you prefer large-cap simplicity with higher current yield and prefer Select Sector construction, XLV's deeper liquidity and higher AUM make it the more accessible choice. Past performance does not predict future results; sector composition and index rules will drive future performance divergence.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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