IHE vs. XHS

Last updated Jul 17, 2026

IHE (iShares U.S. Pharmaceuticals ETF) and XHS (SPDR S&P Health Care Services ETF) are both Health & Biotech Equities funds - IHE tracks the Dow Jones U.S. Select Pharmaceuticals Index while XHS tracks the S&P Health Care Services Select Industry Index. Both are passively managed. Over the past 10 years, IHE returned 8.75%/yr vs 9.10%/yr for XHS. A 0.61 correlation means they provide meaningful diversification when combined. IHE charges 0.38%/yr vs 0.35%/yr for XHS.

Performance

IHE vs. XHS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Pharmaceuticals ETF (IHE) and SPDR S&P Health Care Services ETF (XHS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IHE achieves a 18.78% return, which is significantly lower than XHS's 26.76% return. Both investments have delivered pretty close results over the past 10 years, with IHE having a 8.75% annualized return and XHS not far ahead at 9.10%.

IHE

• 1D: 1.15%
• 1M: 7.32%
• 6M: 17.14%
• YTD: 18.78%
• 1Y: 50.28%
• 3Y*: 21.71%
• 5Y*: 11.99%
• 10Y*: 8.75%

XHS

• 1D: 0.45%
• 1M: 10.64%
• 6M: 21.53%
• YTD: 26.76%
• 1Y: 45.58%
• 3Y*: 13.33%
• 5Y*: 4.53%
• 10Y*: 9.10%

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

IHE vs. XHS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHE iShares U.S. Pharmaceuticals ETF	18.78%	31.69%	8.13%	1.06%	-4.87%	13.07%	13.66%	15.47%	-7.76%	10.64%
XHS SPDR S&P Health Care Services ETF	26.76%	18.83%	1.76%	5.15%	-19.87%	9.76%	33.66%	18.81%	1.96%	17.65%

Correlation

The correlation between IHE and XHS is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.61

Over the past year, the correlation between IHE and XHS has dropped to 0.38 - well below their long-term average of 0.61, suggesting their price drivers have been diverging.

IHE vs. XHS - Sectors Allocation Comparison

Sectors	IHE	XHS
Healthcare	100.0%	95.7%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	3.7%
Industrials	-	0.5%
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IHE vs. XHS — Risk / Return Rank

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

IHE

IHE Risk / Return Rank: 93
IHE Sharpe Ratio Rank: 94
IHE Sortino Ratio Rank: 95
IHE Omega Ratio Rank: 91
IHE Calmar Ratio Rank: 95
IHE Martin Ratio Rank: 92

XHS

XHS Risk / Return Rank: 88
XHS Sharpe Ratio Rank: 92
XHS Sortino Ratio Rank: 90
XHS Omega Ratio Rank: 89
XHS Calmar Ratio Rank: 86
XHS Martin Ratio Rank: 84

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.

IHE vs. XHS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) and SPDR S&P Health Care Services ETF (XHS). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IHE	XHS	Difference
Sharpe ratio: Return per unit of total volatility	2.83	2.56	+0.27
Sortino ratio: Return per unit of downside risk	4.15	3.42	+0.73
Omega ratio: Gain probability vs. loss probability	1.47	1.45	+0.03
Calmar ratio: Return relative to maximum drawdown	5.96	3.82	+2.14
Martin ratio: Return relative to average drawdown	18.03	13.16	+4.87

IHE vs. XHS - Sharpe Ratio Comparison

The current IHE Sharpe Ratio is 2.83, which is comparable to the XHS Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of IHE and XHS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IHE vs. XHS - Drawdown Comparison

The maximum IHE drawdown since its inception was -38.20%, roughly equal to the maximum XHS drawdown of -39.32%. Use the drawdown chart below to compare losses from any high point for IHE and XHS.

Drawdown Indicators

	IHE	XHS	Difference
Max Drawdown Largest peak-to-trough decline	-38.20%	-39.32%	+1.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.47%	-11.99%	+3.52%
Max Drawdown (3Y) Largest decline over 3 years	-15.92%	-17.81%	+1.89%
Max Drawdown (5Y) Largest decline over 5 years	-16.03%	-31.34%	+15.31%
Max Drawdown (10Y) Largest decline over 10 years	-29.59%	-39.32%	+9.73%
Current Drawdown Current decline from peak	-3.18%	-1.72%	-1.46%
Average Drawdown Average peak-to-trough decline	-7.88%	-10.12%	+2.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.80%	3.48%	-0.68%

Volatility

IHE vs. XHS - Volatility Comparison

iShares U.S. Pharmaceuticals ETF (IHE) has a higher volatility of 6.65% compared to SPDR S&P Health Care Services ETF (XHS) at 5.41%. This indicates that IHE's price experiences larger fluctuations and is considered to be riskier than XHS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IHE	XHS	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.65%	5.41%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	13.73%	12.81%	+0.92%
Volatility (1Y) Calculated over the trailing 1-year period	18.00%	17.91%	+0.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.49%	21.22%	-4.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	22.40%	-4.34%

IHE vs. XHS - Expense Ratio Comparison

IHE has a 0.38% expense ratio, which is higher than XHS's 0.35% expense ratio.

Dividends

IHE vs. XHS - Dividend Comparison

IHE's dividend yield for the trailing twelve months is around 1.47%, more than XHS's 0.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHE iShares U.S. Pharmaceuticals ETF	1.47%	1.76%	1.73%	1.39%	2.01%	1.49%	1.19%	1.40%	1.25%	1.36%	0.92%	1.93%
XHS SPDR S&P Health Care Services ETF	0.20%	0.27%	0.38%	0.23%	0.19%	0.20%	0.23%	2.37%	0.34%	0.22%	0.28%	0.93%

Frequently Asked Questions

Can I hold both IHE and XHS in my portfolio?

IHE and XHS have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHE or XHS?

IHE has higher volatility (6.65%) compared to XHS (5.41%). In terms of maximum drawdown, IHE dropped -38.20% vs XHS's -39.32%.

Which ETF is better, IHE or XHS?

On 10-year performance, XHS leads with 9.10% vs 8.75% for IHE. On fees, XHS is cheaper at 0.35% per year. On volatility, XHS has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHE or XHS?

Over the 10-year period, XHS has performed better with a 9.10% return vs 8.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHE or XHS?

XHS is cheaper with a 0.35% expense ratio, compared with 0.38% for IHE.

Which ETF pays a higher dividend yield, IHE or XHS?

IHE has the higher dividend yield at 1.47%, compared with 0.20% for XHS.

What is the main difference between IHE and XHS?

IHE tracks Dow Jones U.S. Select Pharmaceuticals Index, while XHS tracks S&P Health Care Services Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for IHE and 0.35% for XHS.

Which has better risk-adjusted returns?

IHE currently has the higher Sharpe Ratio (2.83 vs 2.56), 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.