What do the expense ratios of VOO and XLV mean for investors?

VOO has an expense ratio of 0.03%, while XLV's is 0.08%. The expense ratio represents the annual fee deducted from the fund's assets. A lower ratio means more of your returns stay in your pocket over time, though the difference in fees alone doesn't determine which fund performs better.

How do the inception dates of VOO and XLV differ?

VOO was launched on September 7, 2010, whereas XLV started much earlier on December 16, 1998. The inception date marks when a fund began trading publicly. Older funds like XLV have longer operational histories, which can sometimes provide more data for performance analysis, though newer funds aren't necessarily worse.

What is the difference in net assets between VOO and XLV?

VOO manages $1.08 trillion in net assets, significantly larger than XLV's $43.5 billion. Net assets reflect the total value of securities held by the fund. Larger funds may benefit from economies of scale but do not automatically perform better; both figures indicate strong investor confidence in these respective products.

How does the dividend yield of VOO compare to XLV?

XLV offers a dividend yield of 1.51%, compared to VOO's 1.03%. Dividend yield is calculated by dividing annual distributions by the fund's price. While a higher yield might seem attractive, it's essential to consider the fund's underlying holdings and overall investment strategy rather than focusing solely on this metric.

Are the top holdings of VOO and XLV similar?

No, there is no overlap between the top ten holdings of VOO and XLV. For example, VOO's largest holdings include tech giants like NVDA and AAPL, while XLV focuses on health care companies such as LLY and JNJ. This demonstrates that these funds serve entirely different market segments despite both being ETFs.

What types of exposure do VOO and XLV provide?

VOO provides broad exposure to 500 large-cap US companies across multiple sectors, categorized as Large Blend. In contrast, XLV targets the Health Care sector specifically. Investors seeking diversified market participation might prefer VOO, whereas those looking to concentrate on healthcare firms would look at XLV.

Why might sector weights be important when comparing ETFs?

Sector weights reveal how an ETF allocates capital across different industries, impacting risk and return profiles. Both VOO and XLV currently list their sector weights as not available. Understanding sector distribution helps investors grasp concentration risks and ensure alignment with their broader investment goals, especially when one fund is sector-specific.

What practical information can investors use to compare these ETFs?

Investors can evaluate expense ratios, net assets, dividend yields, and top holdings to make informed decisions. VOO charges 0.03% versus XLV's 0.08%, and XLV yields more dividends. These metrics guide cost-efficiency and income expectations. Always cross-check these details against your personal financial objectives before choosing between funds.

Why should beginners avoid focusing only on single metrics like yield?

Beginners often fixate on dividend yields, such as XLV's 1.51% versus VOO's 1.03%. However, a higher yield doesn't guarantee better performance. It's crucial to also assess fund strategy, fees, and risk concentration. For instance, XLV's top holding LLY accounts for 15.17%, introducing single-stock risks that a diversified fund like VOO avoids.

How do differences in fund size affect liquidity and trading?

VOO's $1.08 trillion in assets generally ensures high liquidity and stable spreads. XLV's $43.5 billion also supports healthy trading volumes but represents a more niche market. Larger funds typically benefit from more significant institutional engagement, making execution easier for retail investors.

VOO vs XLV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

This page compares Vanguard’s S&P 500 ETF (VOO) and Health Care Select Sector SPDR (XLV), examining fees, holdings, dividends, and how each fund tracks its market. VOO has an expense ratio of 0.03% and net assets of $1.08 trillion, while XLV charges 0.08% with $43.5 billion in assets. Their top holdings differ entirely, offering distinct exposures. Educational content, not financial advice.

This page compares Vanguard’s S&P 500 ETF (VOO) and Health Care Select Sector SPDR (XLV), examining fees, holdings, dividends, and how each fund tracks its market. VOO has an expense ratio of 0.03% an...

Fund Snapshot

Key Fund Metrics

VOO

Metric

XLV

0.03%

Expense Ratio

0.08%

1.03%

Dividend Yield

1.51%

$1.08T

Net Assets

$43.50B

516

Holdings

64

Sep 7, 2010

Inception Date

Dec 16, 1998

–

Index Tracked

–

Large Blend

Fund Category

Health

VOO costs about $5.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VOO

Pros

VOO charges a very low expense ratio of 0.03%.
It holds approximately $1.08 trillion in net assets, providing substantial scale.
Investors gain exposure to 500 large US companies across major sectors.

Considerations

The portfolio has meaningful concentration, with the top ten holdings accounting for significant assets.
The dividend yield is relatively modest at 1.03%.
The specific sector weights for the fund are currently unavailable.

XLV

Pros

XLV provides targeted exposure to the health care sector with a dividend yield of 1.51%.
It manages $43.5 billion in assets, indicating strong investor interest.
The fund benefits from being one of the longest-established sector ETFs available.

Considerations

The expense ratio of 0.08% is higher than broad market alternatives.
Top holdings like LLY at 15.17% create considerable single-stock concentration risk.
The fund's sector weights are not currently available for detailed analysis.

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About VOO and XLV

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

XLV (XLV)

Health Care Select Sector SPDR (XLV) is an exchange‑traded fund that provides diversified exposure to large-cap US health‑care companies across pharmaceuticals, biotechnology, medical devices, health‑care providers and insurers. It trades like a stock, offering a simple way to gain sector-specific exposure without selecting individual companies. Investors should note sector concentration risk — performance is tied to regulatory decisions, patent cycles, drug approvals and healthcare spending trends. XLV typically offers broad, liquid exposure and may distribute dividends, but yields and performance fluctuate. Fees for passive sector ETFs are generally low compared with active funds, though expenses reduce long‑term returns. Suitable for investors seeking targeted allocation to the health‑care sector within a diversified portfolio, XLV is not a substitute for personalised advice. This is general educational information only — values can fall as well as rise and past performance is not a reliable indicator of future results.

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