XHE vs. XBI

Last updated Jun 3, 2026

XHE (SPDR S&P Health Care Equipment ETF) and XBI (SPDR S&P Biotech ETF) are both Health & Biotech Equities funds from State Street - XHE tracks the S&P Health Care Equipment Select Industry Index while XBI tracks the S&P Biotechnology Select Industry Index. Both are passively managed. Over the past 10 years, XHE returned 5.72%/yr vs 8.35%/yr for XBI. A 0.66 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

XHE vs. XBI - Performance Comparison

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

Returns By Period

In the year-to-date period, XHE achieves a -11.59% return, which is significantly lower than XBI's 4.78% return. Over the past 10 years, XHE has underperformed XBI with an annualized return of 5.72%, while XBI has yielded a comparatively higher 8.35% annualized return.

XHE

• 1D: -0.95%
• 1M: -4.49%
• YTD: -11.59%
• 6M: -10.52%
• 1Y: -2.63%
• 3Y*: -6.57%
• 5Y*: -8.01%
• 10Y*: 5.72%

XBI

• 1D: -4.39%
• 1M: -2.04%
• YTD: 4.78%
• 6M: 8.21%
• 1Y: 57.84%
• 3Y*: 14.12%
• 5Y*: 0.26%
• 10Y*: 8.35%

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

XHE vs. XBI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHE SPDR S&P Health Care Equipment ETF	-11.59%	-0.23%	5.08%	-6.23%	-23.34%	3.04%	32.91%	22.30%	8.90%	30.51%
XBI SPDR S&P Biotech ETF	4.78%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%

Correlation

The correlation between XHE and XBI is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	0.66

The correlation between XHE and XBI shifts across timeframes, from 0.50 (1 year) to 0.68 (10 years), reflecting how their relationship changes across market environments.

XHE vs. XBI - Sectors Allocation Comparison

Sectors	XHE	XBI
Healthcare	98.4%	99.8%
Industrials	1.7%	-
Financial Services	1.6%	0.2%
Communication Services	1.4%	-
Basic Materials	-	0.2%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XHE vs. XBI — Risk / Return Rank

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

XHE

XHE Risk / Return Rank: 7
XHE Sharpe Ratio Rank: 7
XHE Sortino Ratio Rank: 7
XHE Omega Ratio Rank: 7
XHE Calmar Ratio Rank: 7
XHE Martin Ratio Rank: 6

XBI

XBI Risk / Return Rank: 75
XBI Sharpe Ratio Rank: 68
XBI Sortino Ratio Rank: 68
XBI Omega Ratio Rank: 61
XBI Calmar Ratio Rank: 92
XBI Martin Ratio Rank: 88

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. XBI - Risk-Adjusted Trends Comparison

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

	XHE	XBI	Difference
Sharpe ratio Return per unit of total volatility	-0.12	2.28	-2.41
Sortino ratio Return per unit of downside risk	-0.03	3.14	-3.17
Omega ratio Gain probability vs. loss probability	1.00	1.37	-0.38
Calmar ratio Return relative to maximum drawdown	-0.21	6.37	-6.58
Martin ratio Return relative to average drawdown	-0.48	19.55	-20.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XHE vs. XBI - Sharpe Ratio Comparison

The current XHE Sharpe Ratio is -0.12, which is lower than the XBI Sharpe Ratio of 2.28. The chart below compares the historical Sharpe Ratios of XHE and XBI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XHE	XBI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.12	2.28	-2.41
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.33	0.01	-0.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.26	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.36	+0.05

Drawdowns

XHE vs. XBI - Drawdown Comparison

The maximum XHE drawdown since its inception was -49.92%, smaller than the maximum XBI drawdown of -63.89%. Use the drawdown chart below to compare losses from any high point for XHE and XBI.

Drawdown Indicators

	XHE	XBI	Difference
Max Drawdown Largest peak-to-trough decline	-49.92%	-63.89%	+13.97%
Max Drawdown (1Y) Largest decline over 1 year	-18.29%	-9.72%	-8.57%
Max Drawdown (3Y) Largest decline over 3 years	-32.62%	-32.99%	+0.37%
Max Drawdown (5Y) Largest decline over 5 years	-49.92%	-54.71%	+4.79%
Max Drawdown (10Y) Largest decline over 10 years	-49.92%	-63.89%	+13.97%
Current Drawdown Current decline from peak	-41.39%	-26.16%	-15.23%
Average Drawdown Average peak-to-trough decline	-13.26%	-20.93%	+7.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.00%	3.17%	+4.83%

Volatility

XHE vs. XBI - Volatility Comparison

The current volatility for SPDR S&P Health Care Equipment ETF (XHE) is 5.82%, while SPDR S&P Biotech ETF (XBI) has a volatility of 9.43%. This indicates that XHE experiences smaller price fluctuations and is considered to be less risky than XBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHE	XBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.82%	9.43%	-3.61%
Volatility (6M) Calculated over the trailing 6-month period	15.38%	20.31%	-4.93%
Volatility (1Y) Calculated over the trailing 1-year period	21.39%	25.57%	-4.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.40%	32.17%	-7.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.93%	32.00%	-9.07%

XHE vs. XBI - Expense Ratio Comparison

Both XHE and XBI have an expense ratio of 0.35%.

Dividends

XHE vs. XBI - Dividend Comparison

XHE's dividend yield for the trailing twelve months is around 0.09%, less than XBI's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XBI SPDR S&P Biotech ETF	0.34%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%
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 XBI in my portfolio?

XHE and XBI have a correlation of 0.50, 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 XBI?

XBI has higher volatility (9.43%) compared to XHE (5.82%). In terms of maximum drawdown, XHE dropped -49.92% vs XBI's -63.89%.

Which ETF is better, XHE or XBI?

On 10-year performance, XBI leads with 8.35% vs 5.72% for XHE. Both ETFs have the same 0.35% expense ratio. On volatility, XHE has been the lower-risk option at 5.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHE or XBI?

Over the 10-year period, XBI has performed better with a 8.35% return vs 5.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHE or XBI?

XHE and XBI have the same expense ratio: 0.35% per year.

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

XBI has the higher dividend yield at 0.34%, compared with 0.09% for XHE.

What is the main difference between XHE and XBI?

XHE tracks S&P Health Care Equipment Select Industry Index, while XBI tracks S&P Biotechnology Select Industry Index.

Which has better risk-adjusted returns?

XBI currently has the higher Sharpe Ratio (2.28 vs -0.12), 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.