IHI vs. XHS

Last updated Jul 18, 2026

IHI (iShares U.S. Medical Devices ETF) and XHS (SPDR S&P Health Care Services ETF) are both Health & Biotech Equities funds - IHI tracks the Dow Jones U.S. Select Medical Equipment Index while XHS tracks the S&P Health Care Services Select Industry Index. Both are passively managed. Over the past 10 years, IHI returned 8.43%/yr vs 9.20%/yr for XHS. A 0.66 correlation means they provide meaningful diversification when combined. IHI charges 0.38%/yr vs 0.35%/yr for XHS.

Performance

IHI vs. XHS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Medical Devices ETF (IHI) 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, IHI achieves a -18.54% return, which is significantly lower than XHS's 27.15% return. Over the past 10 years, IHI has underperformed XHS with an annualized return of 8.43%, while XHS has yielded a comparatively higher 9.20% annualized return.

IHI

• 1D: -3.24%
• 1M: 4.36%
• 6M: -18.12%
• YTD: -18.54%
• 1Y: -15.41%
• 3Y*: -3.16%
• 5Y*: -3.26%
• 10Y*: 8.43%

XHS

• 1D: 0.31%
• 1M: 12.38%
• 6M: 23.43%
• YTD: 27.15%
• 1Y: 46.39%
• 3Y*: 13.11%
• 5Y*: 4.60%
• 10Y*: 9.20%

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

IHI vs. XHS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHI iShares U.S. Medical Devices ETF	-18.54%	6.88%	8.62%	3.24%	-19.80%	21.03%	24.17%	32.75%	15.45%	30.81%
XHS SPDR S&P Health Care Services ETF	27.15%	18.83%	1.76%	5.15%	-19.87%	9.76%	33.66%	18.81%	1.96%	17.65%

Correlation

The correlation between IHI and XHS is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.66

The correlation between IHI and XHS shifts across timeframes, from 0.57 (1 year) to 0.67 (5 years), reflecting how their relationship changes across market environments.

IHI vs. XHS - Sectors Allocation Comparison

Sectors	IHI	XHS
Healthcare	100.0%	95.7%
Technology	0.3%	-
Industrials	0.2%	0.5%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	3.7%
Real Estate	-	-
Utilities	-	-

Return for Risk

IHI vs. XHS — Risk / Return Rank

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

IHI

IHI Risk / Return Rank: 3
IHI Sharpe Ratio Rank: 3
IHI Sortino Ratio Rank: 3
IHI Omega Ratio Rank: 3
IHI Calmar Ratio Rank: 4
IHI Martin Ratio Rank: 3

XHS

XHS Risk / Return Rank: 89
XHS Sharpe Ratio Rank: 93
XHS Sortino Ratio Rank: 91
XHS Omega Ratio Rank: 90
XHS Calmar Ratio Rank: 87
XHS Martin Ratio Rank: 85

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.

IHI vs. XHS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Medical Devices ETF (IHI) 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.

	IHI	XHS	Difference
Sharpe ratio: Return per unit of total volatility	-0.79	2.60	-3.40
Sortino ratio: Return per unit of downside risk	-1.04	3.47	-4.51
Omega ratio: Gain probability vs. loss probability	0.88	1.45	-0.57
Calmar ratio: Return relative to maximum drawdown	-0.59	3.89	-4.48
Martin ratio: Return relative to average drawdown	-1.22	13.41	-14.63

IHI vs. XHS - Sharpe Ratio Comparison

The current IHI Sharpe Ratio is -0.79, which is lower than the XHS Sharpe Ratio of 2.60. The chart below compares the historical Sharpe Ratios of IHI 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

IHI vs. XHS - Drawdown Comparison

The maximum IHI drawdown since its inception was -49.65%, which is greater than XHS's maximum drawdown of -39.32%. Use the drawdown chart below to compare losses from any high point for IHI and XHS.

Drawdown Indicators

	IHI	XHS	Difference
Max Drawdown Largest peak-to-trough decline	-49.65%	-39.32%	-10.33%
Max Drawdown (1Y) Largest decline over 1 year	-26.11%	-11.99%	-14.12%
Max Drawdown (3Y) Largest decline over 3 years	-26.64%	-17.81%	-8.83%
Max Drawdown (5Y) Largest decline over 5 years	-33.12%	-31.34%	-1.78%
Max Drawdown (10Y) Largest decline over 10 years	-33.25%	-39.32%	+6.07%
Current Drawdown Current decline from peak	-23.08%	-1.42%	-21.66%
Average Drawdown Average peak-to-trough decline	-8.41%	-10.12%	+1.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.63%	3.48%	+9.15%

Volatility

IHI vs. XHS - Volatility Comparison

iShares U.S. Medical Devices ETF (IHI) has a higher volatility of 10.17% compared to SPDR S&P Health Care Services ETF (XHS) at 5.40%. This indicates that IHI'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

	IHI	XHS	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.17%	5.40%	+4.77%
Volatility (6M) Calculated over the trailing 6-month period	16.15%	12.80%	+3.35%
Volatility (1Y) Calculated over the trailing 1-year period	19.55%	17.91%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.48%	21.21%	-1.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.98%	22.40%	-2.42%

IHI vs. XHS - Expense Ratio Comparison

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

Dividends

IHI vs. XHS - Dividend Comparison

IHI's dividend yield for the trailing twelve months is around 0.48%, more than XHS's 0.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHI iShares U.S. Medical Devices ETF	0.48%	0.34%	0.46%	0.53%	0.45%	0.25%	0.25%	0.33%	0.26%	0.37%	0.55%	1.28%
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 IHI and XHS in my portfolio?

IHI and XHS have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHI or XHS?

IHI has higher volatility (10.17%) compared to XHS (5.40%). In terms of maximum drawdown, IHI dropped -49.65% vs XHS's -39.32%.

Which ETF is better, IHI or XHS?

On 10-year performance, XHS leads with 9.20% vs 8.43% for IHI. On fees, XHS is cheaper at 0.35% per year. On volatility, XHS has been the lower-risk option at 5.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHI or XHS?

Over the 10-year period, XHS has performed better with a 9.20% return vs 8.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHI or XHS?

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

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

IHI has the higher dividend yield at 0.48%, compared with 0.20% for XHS.

What is the main difference between IHI and XHS?

IHI tracks Dow Jones U.S. Select Medical Equipment 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 IHI and 0.35% for XHS.

Which has better risk-adjusted returns?

XHS currently has the higher Sharpe Ratio (2.60 vs -0.79), 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.