XHE vs. FHLC

Last updated Jun 23, 2026

XHE (SPDR S&P Health Care Equipment ETF) and FHLC (Fidelity MSCI Health Care Index ETF) are both Health & Biotech Equities funds - XHE tracks the S&P Health Care Equipment Select Industry Index while FHLC tracks the MSCI USA IMI Health Care Index. Both are passively managed. Over the past 10 years, XHE returned 6.02%/yr vs 9.88%/yr for FHLC. A 0.74 correlation means they provide meaningful diversification when combined. XHE charges 0.35%/yr vs 0.08%/yr for FHLC.

Performance

XHE vs. FHLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Health Care Equipment ETF (XHE) and Fidelity MSCI Health Care Index ETF (FHLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XHE achieves a -8.91% return, which is significantly lower than FHLC's -1.22% return. Over the past 10 years, XHE has underperformed FHLC with an annualized return of 6.02%, while FHLC has yielded a comparatively higher 9.88% annualized return.

XHE

• 1D: -2.39%
• 1M: -0.92%
• YTD: -8.91%
• 6M: -10.99%
• 1Y: 1.37%
• 3Y*: -5.83%
• 5Y*: -8.97%
• 10Y*: 6.02%

FHLC

• 1D: 0.90%
• 1M: 1.34%
• YTD: -1.22%
• 6M: -1.95%
• 1Y: 17.82%
• 3Y*: 6.59%
• 5Y*: 4.42%
• 10Y*: 9.88%

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

XHE vs. FHLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHE SPDR S&P Health Care Equipment ETF	-8.91%	-0.23%	5.08%	-6.23%	-23.34%	3.04%	32.91%	22.30%	8.90%	30.51%
FHLC Fidelity MSCI Health Care Index ETF	-1.22%	15.42%	2.48%	2.58%	-5.55%	20.39%	18.13%	21.94%	4.71%	23.34%

Correlation

The correlation between XHE and FHLC is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.74

The correlation between XHE and FHLC shifts across timeframes, from 0.64 (1 year) to 0.75 (10 years), reflecting how their relationship changes across market environments.

XHE vs. FHLC - Sectors Allocation Comparison

Sectors	XHE	FHLC
Healthcare	98.2%	99.7%
Financial Services	1.8%	0.0%
Industrials	1.7%	0.0%
Communication Services	1.4%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

XHE vs. FHLC — Risk / Return Rank

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

XHE

XHE Risk / Return Rank: 9
XHE Sharpe Ratio Rank: 9
XHE Sortino Ratio Rank: 9
XHE Omega Ratio Rank: 9
XHE Calmar Ratio Rank: 9
XHE Martin Ratio Rank: 9

FHLC

FHLC Risk / Return Rank: 34
FHLC Sharpe Ratio Rank: 35
FHLC Sortino Ratio Rank: 38
FHLC Omega Ratio Rank: 33
FHLC Calmar Ratio Rank: 35
FHLC Martin Ratio Rank: 31

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.

XHE vs. FHLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Health Care Equipment ETF (XHE) and Fidelity MSCI Health Care Index ETF (FHLC). 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.

	XHE	FHLC	Difference
Sharpe ratio: Return per unit of total volatility	0.06	1.22	-1.16
Sortino ratio: Return per unit of downside risk	0.25	1.90	-1.64
Omega ratio: Gain probability vs. loss probability	1.03	1.22	-0.19
Calmar ratio: Return relative to maximum drawdown	0.08	1.72	-1.65
Martin ratio: Return relative to average drawdown	0.16	4.27	-4.10

XHE vs. FHLC - Sharpe Ratio Comparison

The current XHE Sharpe Ratio is 0.06, which is lower than the FHLC Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of XHE and FHLC, 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

XHE vs. FHLC - Drawdown Comparison

The maximum XHE drawdown since its inception was -49.92%, which is greater than FHLC's maximum drawdown of -28.76%. Use the drawdown chart below to compare losses from any high point for XHE and FHLC.

Drawdown Indicators

	XHE	FHLC	Difference
Max Drawdown Largest peak-to-trough decline	-49.92%	-28.76%	-21.16%
Max Drawdown (1Y) Largest decline over 1 year	-18.29%	-10.38%	-7.91%
Max Drawdown (3Y) Largest decline over 3 years	-32.62%	-16.87%	-15.75%
Max Drawdown (5Y) Largest decline over 5 years	-49.92%	-17.73%	-32.19%
Max Drawdown (10Y) Largest decline over 10 years	-49.92%	-28.76%	-21.16%
Current Drawdown Current decline from peak	-39.61%	-4.36%	-35.25%
Average Drawdown Average peak-to-trough decline	-13.34%	-5.19%	-8.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.42%	4.19%	+4.23%

Volatility

XHE vs. FHLC - Volatility Comparison

SPDR S&P Health Care Equipment ETF (XHE) has a higher volatility of 7.40% compared to Fidelity MSCI Health Care Index ETF (FHLC) at 4.92%. This indicates that XHE's price experiences larger fluctuations and is considered to be riskier than FHLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHE	FHLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.40%	4.92%	+2.48%
Volatility (6M) Calculated over the trailing 6-month period	16.50%	10.46%	+6.04%
Volatility (1Y) Calculated over the trailing 1-year period	22.12%	14.70%	+7.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.56%	15.02%	+9.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.00%	16.85%	+6.15%

XHE vs. FHLC - Expense Ratio Comparison

XHE has a 0.35% expense ratio, which is higher than FHLC's 0.08% expense ratio.

Dividends

XHE vs. FHLC - Dividend Comparison

XHE's dividend yield for the trailing twelve months is around 0.09%, less than FHLC's 1.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHLC Fidelity MSCI Health Care Index ETF	1.40%	1.40%	1.51%	1.40%	1.30%	1.16%	1.45%	1.18%	1.38%	1.38%	1.40%	2.07%
XHE SPDR S&P Health Care Equipment ETF	0.09%	0.08%	0.04%	0.03%	0.04%	0.00%	0.00%	0.05%	0.09%	0.78%	0.17%	7.22%

Frequently Asked Questions

Can I hold both XHE and FHLC in my portfolio?

XHE and FHLC have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XHE or FHLC?

XHE has higher volatility (7.40%) compared to FHLC (4.92%). In terms of maximum drawdown, XHE dropped -49.92% vs FHLC's -28.76%.

Which ETF is better, XHE or FHLC?

On 10-year performance, FHLC leads with 9.88% vs 6.02% for XHE. On fees, FHLC is cheaper at 0.08% per year. On volatility, FHLC has been the lower-risk option at 4.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHE or FHLC?

Over the 10-year period, FHLC has performed better with a 9.88% return vs 6.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHE or FHLC?

FHLC is cheaper with a 0.08% expense ratio, compared with 0.35% for XHE.

Which ETF pays a higher dividend yield, XHE or FHLC?

FHLC has the higher dividend yield at 1.40%, compared with 0.09% for XHE.

What is the main difference between XHE and FHLC?

XHE tracks S&P Health Care Equipment Select Industry Index, while FHLC tracks MSCI USA IMI Health Care Index. They also come from different issuers: State Street and Fidelity. Their fees differ too: 0.35% for XHE and 0.08% for FHLC.

Which has better risk-adjusted returns?

FHLC currently has the higher Sharpe Ratio (1.22 vs 0.06), 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.