TMED vs. XLV

Last updated Jun 4, 2026

TMED (T. Rowe Price Health Care ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both Health & Biotech Equities funds. Their correlation of 0.88 suggests significant overlap in exposure. TMED charges 0.44%/yr vs 0.08%/yr for XLV.

Performance

TMED vs. XLV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T. Rowe Price Health Care ETF (TMED) and State Street Health Care Select Sector SPDR ETF (XLV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TMED achieves a 3.87% return, which is significantly higher than XLV's -4.29% return.

TMED

• 1D: 1.04%
• 1M: 2.47%
• YTD: 3.87%
• 6M: 4.17%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

XLV

• 1D: 0.79%
• 1M: 1.95%
• YTD: -4.29%
• 6M: -4.06%
• 1Y: 12.89%
• 3Y*: 5.98%
• 5Y*: 5.55%
• 10Y*: 9.20%

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

TMED vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025
TMED T. Rowe Price Health Care ETF	3.87%	18.92%
XLV State Street Health Care Select Sector SPDR ETF	-4.29%	14.70%

Correlation

The correlation between TMED and XLV is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 13, 2025	0.88

Return for Risk

TMED vs. XLV — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 24
XLV Sharpe Ratio Rank: 24
XLV Sortino Ratio Rank: 26
XLV Omega Ratio Rank: 23
XLV Calmar Ratio Rank: 26
XLV Martin Ratio Rank: 23

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.

TMED vs. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price Health Care ETF (TMED) and State Street Health Care Select Sector SPDR ETF (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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	TMED	XLV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.88	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.38	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.56	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.35	0.46	+0.90

Drawdowns

TMED vs. XLV - Drawdown Comparison

The maximum TMED drawdown since its inception was -11.11%, smaller than the maximum XLV drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for TMED and XLV.

Drawdown Indicators

	TMED	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-11.11%	-39.17%	+28.06%
Max Drawdown (1Y) Largest decline over 1 year	—	-10.47%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-17.11%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-17.11%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-28.40%	—
Current Drawdown Current decline from peak	-2.75%	-7.52%	+4.77%
Average Drawdown Average peak-to-trough decline	-2.59%	-7.12%	+4.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.32%	—

Volatility

Volatility by Period

	TMED	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.10%	—
Volatility (6M) Calculated over the trailing 6-month period	—	10.24%	—
Volatility (1Y) Calculated over the trailing 1-year period	18.04%	14.67%	+3.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.04%	14.69%	+3.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.04%	16.55%	+1.49%

TMED vs. XLV - Expense Ratio Comparison

TMED has a 0.44% expense ratio, which is higher than XLV's 0.08% expense ratio.

Dividends

TMED vs. XLV - Dividend Comparison

TMED's dividend yield for the trailing twelve months is around 0.52%, less than XLV's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TMED T. Rowe Price Health Care ETF	0.52%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLV State Street Health Care Select Sector SPDR ETF	1.70%	1.60%	1.67%	1.59%	1.47%	1.33%	1.49%	2.17%	1.57%	1.47%	1.60%	1.43%

Frequently Asked Questions

Can I hold both TMED and XLV in my portfolio?

TMED and XLV have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, TMED or XLV?

On fees, XLV is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, TMED or XLV?

XLV is cheaper with a 0.08% expense ratio, compared with 0.44% for TMED.

Which ETF pays a higher dividend yield, TMED or XLV?

XLV has the higher dividend yield at 1.70%, compared with 0.52% for TMED.

What is the main difference between TMED and XLV?

They also come from different issuers: T. Rowe Price and State Street. Their fees differ too: 0.44% for TMED and 0.08% for XLV.