XLV VS VHT
4 min read
By Ron Koren, ETF Insider

XLV VS VHT

Exchange-Traded Funds (ETFs) have redefined the landscape of investing, enabling investors to gain diversified exposure across various sectors and asset classes. In this article, we will embark on an in-depth journey of comparison between two prominent healthcare ETFs: XLV (Health Care Select Sector SPDR Fund) and VHT (Vanguard Health Care ETF). We will delve into various dimensions, encompassing ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

XLV Vs VHT: Overview

XLV and VHT are two healthcare ETFs that offer distinctive approaches within the healthcare industry. XLV seeks to mirror the performance of the Health Care Select Sector Index, encompassing a broad range of healthcare companies. On the other hand, VHT, managed by Vanguard, targets exposure to healthcare stocks within the CRSP US Total Market Index. This variation in investment strategy lays the groundwork for our exploration of the contrasts between the two ETFs.

XLV Vs VHT: Sectors and Top Holdings

The XLV ETF covers a spectrum of healthcare subsectors, including pharmaceuticals, biotechnology, and health services. Its top holdings feature industry giants like Johnson & Johnson, Pfizer, and UnitedHealth Group. Conversely, VHT includes an even wider array of subsectors, from healthcare equipment to healthcare providers, and its top holdings encompass J&J, UnitedHealth, and Abbott Laboratories. Understanding the sectors and top holdings helps potential investors tailor their choices based on their sector preferences and investment strategies.

XLV  overlap XLV VS VHTXLV overlap XLV VS VHT

XLV Vs VHT: Capitalization and Strategy

The XLV ETF boasts a substantial asset under management (AUM), indicative of its popularity among investors seeking exposure to the healthcare sector. VHT, managed by Vanguard, employs a strategy of comprehensive diversification across the healthcare landscape. The contrast in capitalization and strategy between the two ETFs paves the way for diverse potential returns and risks, obliging investors to weigh these factors meticulously.

XLV Vs VHT: Tracking and Exposure

The XLV ETF is designed to mirror the performance of its underlying index, offering investors exposure to a diversified portfolio of healthcare companies. VHT, following the CRSP US Total Market Index, endeavors to encompass the entirety of the US healthcare stock market. The methodologies of tracking and exposure differ: XLV focuses on sector-specific stocks, whereas VHT takes a broader market approach. Appreciating these differences empowers investors to make informed decisions aligned with their investment objectives.

Conclusion

XLV and VHT emerge as distinct players in the realm of healthcare ETFs, each carving its niche within the healthcare industry. For those desiring a deeper understanding of holdings, correlations, overlaps, and valuable insights, ETF Insider serves as the ultimate tool. Sporting an intuitive app interface, it equips investors with comprehensive details about these ETFs and other financial instruments.

Disclaimer: This article is solely for informational purposes and does not offer investment advisory services.

Sources:

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FAQ

  • Why is XLV better than VHT?

    XLV may be considered better than VHT for some investors due to its specific focus, offering diversification.

  • Does VHT beat XLV?

    VHT's performance relative to XLV will vary over time, depending on market conditions.

  • Should I invest in XLV or VHT?

    The choice between XLV and VHT should align with your investment goals, risk tolerance, and desired exposure.

  • Are XLV and VHT good investments?

    Both XLV and VHT can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between XLV and VHT?

    The correlation between XLV and VHT can vary over time, reflecting differences in performance.