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.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.
See our curated list of related YouTube videos on VHT.
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.
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
09/21/2026
Bottom lineVHT and XLV are nearly interchangeable — both offer very similar exposure with very similar cost and risk. The clearest tie-breaker is cost: XLV is cheaper at 0.09% vs 0.10%.
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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 21.83% total return against 19.27%. The lead holds up over 10 years too: VHT has compounded at 9.91% a year, against 9.75% for XLV. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 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 1.66% vs 1.32% 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 ($39.2B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VHT would generate roughly $11.00/month, while XLV would produce $13.83/month, at current distribution rates. Both pay quarterly distributions.
VHT yield1.32%
XLV yield1.66%
Monthly diff on $10K$2.83
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 $16.8B in assets. XLV is managed by State Street (launched 12/16/1998) with $39.2B in assets.
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Frequently asked questions
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.
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 $11.00 per month ($132.00 annually). The same in XLV would produce about $13.83 per month ($166.00 annually).
Which has performed better historically, VHT or XLV?
VHT has outpaced XLV over the trailing twelve months, posting a 21.83% total return against 19.27%. The lead holds up over 10 years too: VHT has compounded at 9.91% a year, against 9.75% for XLV. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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