IHE vs. XLV
Compare and contrast key facts about iShares U.S. Pharmaceuticals ETF (IHE) and Health Care Select Sector SPDR Fund (XLV).
IHE and XLV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IHE is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Pharmaceuticals Index. It was launched on May 5, 2006. XLV is a passively managed fund by State Street that tracks the performance of the Health Care Select Sector. It was launched on Dec 16, 1998. Both IHE and XLV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IHE or XLV.
Key characteristics
| IHE | XLV | |
|---|---|---|
| YTD Return | 7.95% | 7.59% |
| 1Y Return | 17.20% | 13.56% |
| 3Y Return (Ann) | 7.72% | 7.47% |
| 5Y Return (Ann) | 11.30% | 12.53% |
| 10Y Return (Ann) | 9.24% | 11.46% |
| Sharpe Ratio | 1.18 | 1.19 |
| Daily Std Dev | 13.55% | 10.61% |
| Max Drawdown | -35.30% | -39.18% |
| Current Drawdown | -4.08% | -1.04% |
Correlation
The correlation between IHE and XLV is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IHE vs. XLV - Performance Comparison
The year-to-date returns for both stocks are quite close, with IHE having a 7.95% return and XLV slightly lower at 7.59%. Over the past 10 years, IHE has underperformed XLV with an annualized return of 9.24%, while XLV has yielded a comparatively higher 11.46% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IHE vs. XLV - Expense Ratio Comparison
IHE has a 0.42% expense ratio, which is higher than XLV's 0.12% expense ratio.
Risk-Adjusted Performance
IHE vs. XLV - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) and Health Care Select Sector SPDR Fund (XLV). 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.
Dividends
IHE vs. XLV - Dividend Comparison
IHE's dividend yield for the trailing twelve months is around 3.27%, more than XLV's 1.51% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 3.27% | 4.16% | 6.02% | 4.48% | 3.57% | 4.19% | 3.76% | 4.08% | 2.75% | 5.78% | 3.60% | 3.19% |
XLV Health Care Select Sector SPDR Fund | 1.51% | 1.59% | 1.47% | 1.33% | 1.49% | 2.16% | 1.56% | 1.46% | 1.59% | 1.43% | 1.34% | 1.51% |
Drawdowns
IHE vs. XLV - Drawdown Comparison
The maximum IHE drawdown since its inception was -35.30%, smaller than the maximum XLV drawdown of -39.18%. Use the drawdown chart below to compare losses from any high point for IHE and XLV. For additional features, visit the drawdowns tool.
Volatility
IHE vs. XLV - Volatility Comparison
iShares U.S. Pharmaceuticals ETF (IHE) has a higher volatility of 3.29% compared to Health Care Select Sector SPDR Fund (XLV) at 2.41%. This indicates that IHE's price experiences larger fluctuations and is considered to be riskier than XLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.