^SPXHC vs. ^NBI

Last updated Jun 5, 2026

^SPXHC (S&P 500 Health Care Index) and ^NBI (NASDAQ Biotechnology Index) are both indexes. Over the past 10 years, ^SPXHC returned 7.75%/yr vs 7.10%/yr for ^NBI. A 0.75 correlation means they provide meaningful diversification when combined.

Performance

^SPXHC vs. ^NBI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in S&P 500 Health Care Index (^SPXHC) and NASDAQ Biotechnology Index (^NBI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ^SPXHC achieves a -2.08% return, which is significantly lower than ^NBI's 4.11% return. Over the past 10 years, ^SPXHC has outperformed ^NBI with an annualized return of 7.75%, while ^NBI has yielded a comparatively lower 7.10% annualized return.

^SPXHC

• 1D: 3.16%
• 1M: 4.44%
• YTD: -2.08%
• 6M: -1.25%
• 1Y: 14.10%
• 3Y*: 5.13%
• 5Y*: 4.47%
• 10Y*: 7.75%

^NBI

• 1D: 2.32%
• 1M: 0.53%
• YTD: 4.11%
• 6M: 3.07%
• 1Y: 42.03%
• 3Y*: 12.52%
• 5Y*: 4.34%
• 10Y*: 7.10%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^SPXHC vs. ^NBI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^SPXHC S&P 500 Health Care Index	-2.08%	12.53%	0.90%	0.30%	-3.55%	24.16%	11.43%	18.68%	4.69%	20.00%
^NBI NASDAQ Biotechnology Index	4.11%	32.40%	-1.37%	3.74%	-10.91%	-0.63%	25.69%	24.41%	-9.32%	21.06%

Correlation

The correlation between ^SPXHC and ^NBI is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Dec 6, 2001	0.75

The correlation between ^SPXHC and ^NBI has been stable across timeframes, ranging from 0.67 to 0.75 - a consistent structural relationship.

Return for Risk

^SPXHC vs. ^NBI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^SPXHC

^SPXHC Risk / Return Rank: 40
^SPXHC Sharpe Ratio Rank: 40
^SPXHC Sortino Ratio Rank: 42
^SPXHC Omega Ratio Rank: 41
^SPXHC Calmar Ratio Rank: 40
^SPXHC Martin Ratio Rank: 38

^NBI

^NBI Risk / Return Rank: 80
^NBI Sharpe Ratio Rank: 71
^NBI Sortino Ratio Rank: 71
^NBI Omega Ratio Rank: 70
^NBI Calmar Ratio Rank: 95
^NBI Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^SPXHC vs. ^NBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for S&P 500 Health Care Index (^SPXHC) and NASDAQ Biotechnology Index (^NBI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^SPXHC	^NBI	Difference
Sharpe ratio: Return per unit of total volatility	0.95	2.12	-1.17
Sortino ratio: Return per unit of downside risk	1.52	2.96	-1.44
Omega ratio: Gain probability vs. loss probability	1.17	1.35	-0.18
Calmar ratio: Return relative to maximum drawdown	1.32	5.00	-3.68
Martin ratio: Return relative to average drawdown	3.16	16.36	-13.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^SPXHC vs. ^NBI - Sharpe Ratio Comparison

The current ^SPXHC Sharpe Ratio is 0.95, which is lower than the ^NBI Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of ^SPXHC and ^NBI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^SPXHC	^NBI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.95	2.12	-1.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.20	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.30	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.39	-0.03

Drawdowns

^SPXHC vs. ^NBI - Drawdown Comparison

The maximum ^SPXHC drawdown since its inception was -40.78%, smaller than the maximum ^NBI drawdown of -74.70%. Use the drawdown chart below to compare losses from any high point for ^SPXHC and ^NBI.

Drawdown Indicators

	^SPXHC	^NBI	Difference
Max Drawdown Largest peak-to-trough decline	-40.78%	-74.70%	+33.92%
Max Drawdown (1Y) Largest decline over 1 year	-10.75%	-8.45%	-2.30%
Max Drawdown (3Y) Largest decline over 3 years	-18.01%	-24.08%	+6.07%
Max Drawdown (5Y) Largest decline over 5 years	-18.01%	-38.50%	+20.49%
Max Drawdown (10Y) Largest decline over 10 years	-28.59%	-38.50%	+9.91%
Current Drawdown Current decline from peak	-5.15%	-3.10%	-2.05%
Average Drawdown Average peak-to-trough decline	-8.32%	-26.60%	+18.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.47%	2.58%	+1.89%

Volatility

^SPXHC vs. ^NBI - Volatility Comparison

The current volatility for S&P 500 Health Care Index (^SPXHC) is 5.12%, while NASDAQ Biotechnology Index (^NBI) has a volatility of 7.40%. This indicates that ^SPXHC experiences smaller price fluctuations and is considered to be less risky than ^NBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^SPXHC	^NBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.12%	7.40%	-2.28%
Volatility (6M) Calculated over the trailing 6-month period	10.64%	15.47%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	14.95%	19.96%	-5.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.75%	22.02%	-7.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.62%	23.44%	-6.82%

Frequently Asked Questions

Can I hold both ^SPXHC and ^NBI in my portfolio?

^SPXHC and ^NBI have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^SPXHC or ^NBI?

^NBI has higher volatility (7.40%) compared to ^SPXHC (5.12%). In terms of maximum drawdown, ^SPXHC dropped -40.78% vs ^NBI's -74.70%.

Which has better risk-adjusted returns?

^NBI currently has the higher Sharpe Ratio (2.12 vs 0.95), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.