Vanguard Health Care ETF vs State Street XLV: Which ETF Is the Better Buy for Investors in 2026?
XLV's concentrated 60-stock portfolio beat VHT's broader 423 holdings over five years, though VHT delivered stronger 1-year returns.
Overview
The State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) provides concentrated exposure to blue-chip healthcare giants, while the Vanguard Health Care ETF (NYSEMKT:VHT) offers a wider reach including small- and mid-cap companies.
Healthcare remains a cornerstone of the American economy, and these two funds offer distinct ways to own it. While both seek to track the performance of the medical and wellness industries, the degree of diversification varies significantly between the two portfolios, impacting concentration risk and market-cap exposure.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on August 8.
Source
Originally published at www.fool.com.