XHS vs. SPY

Last updated Jun 24, 2026

XHS (SPDR S&P Health Care Services ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - XHS is a Health & Biotech Equities fund tracking the S&P Health Care Services Select Industry Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XHS returned 8.61%/yr vs 15.53%/yr for SPY. A 0.65 correlation means they provide meaningful diversification when combined. XHS charges 0.35%/yr vs 0.09%/yr for SPY.

Performance

XHS vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Health Care Services ETF (XHS) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XHS achieves a 15.40% return, which is significantly higher than SPY's 8.15% return. Over the past 10 years, XHS has underperformed SPY with an annualized return of 8.61%, while SPY has yielded a comparatively higher 15.53% annualized return.

XHS

• 1D: 0.88%
• 1M: 8.42%
• YTD: 15.40%
• 6M: 14.24%
• 1Y: 28.59%
• 3Y*: 11.29%
• 5Y*: 1.64%
• 10Y*: 8.61%

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

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

XHS vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHS SPDR S&P Health Care Services ETF	15.40%	18.83%	1.76%	5.15%	-19.87%	9.76%	33.66%	18.81%	1.96%	17.65%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between XHS and SPY is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.64
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	0.65

Over the past year, the correlation between XHS and SPY has dropped to 0.43 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.

XHS vs. SPY - Sectors Allocation Comparison

Sectors	XHS	SPY
Healthcare	97.9%	8.3%
Financial Services	2.1%	11.1%
Basic Materials	-	1.7%
Communication Services	-	10.6%
Consumer Cyclical	-	9.9%
Consumer Defensive	-	4.5%
Energy	-	3.1%
Industrials	-	7.8%
Real Estate	-	1.8%
Technology	-	39.0%
Utilities	-	2.1%

Return for Risk

XHS vs. SPY — Risk / Return Rank

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

XHS

XHS Risk / Return Rank: 47
XHS Sharpe Ratio Rank: 48
XHS Sortino Ratio Rank: 47
XHS Omega Ratio Rank: 47
XHS Calmar Ratio Rank: 51
XHS Martin Ratio Rank: 43

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

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.

XHS vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Health Care Services ETF (XHS) and State Street SPDR S&P 500 ETF (SPY). 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.

	XHS	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.90	-0.30
Sortino ratio: Return per unit of downside risk	2.21	2.58	-0.37
Omega ratio: Gain probability vs. loss probability	1.29	1.34	-0.06
Calmar ratio: Return relative to maximum drawdown	2.39	2.67	-0.27
Martin ratio: Return relative to average drawdown	6.63	11.92	-5.29

XHS vs. SPY - Sharpe Ratio Comparison

The current XHS Sharpe Ratio is 1.60, which is comparable to the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of XHS and SPY, 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

XHS vs. SPY - Drawdown Comparison

The maximum XHS drawdown since its inception was -39.32%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XHS and SPY.

Drawdown Indicators

	XHS	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-39.32%	-55.19%	+15.87%
Max Drawdown (1Y) Largest decline over 1 year	-11.99%	-8.88%	-3.11%
Max Drawdown (3Y) Largest decline over 3 years	-17.81%	-18.76%	+0.95%
Max Drawdown (5Y) Largest decline over 5 years	-32.62%	-24.50%	-8.12%
Max Drawdown (10Y) Largest decline over 10 years	-39.32%	-33.72%	-5.60%
Current Drawdown Current decline from peak	0.00%	-3.17%	+3.17%
Average Drawdown Average peak-to-trough decline	-10.16%	-9.04%	-1.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	1.98%	+2.34%

Volatility

XHS vs. SPY - Volatility Comparison

The current volatility for SPDR S&P Health Care Services ETF (XHS) is 4.47%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.87%. This indicates that XHS experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHS	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.47%	4.87%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	12.25%	9.85%	+2.40%
Volatility (1Y) Calculated over the trailing 1-year period	17.92%	12.50%	+5.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.13%	17.15%	+3.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.40%	17.95%	+4.45%

XHS vs. SPY - Expense Ratio Comparison

XHS has a 0.35% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

XHS vs. SPY - Dividend Comparison

XHS's dividend yield for the trailing twelve months is around 0.22%, less than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
XHS SPDR S&P Health Care Services ETF	0.22%	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 XHS and SPY in my portfolio?

XHS and SPY have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XHS or SPY?

SPY has higher volatility (4.87%) compared to XHS (4.47%). In terms of maximum drawdown, XHS dropped -39.32% vs SPY's -55.19%.

Which ETF is better, XHS or SPY?

On 10-year performance, SPY leads with 15.53% vs 8.61% for XHS. On fees, SPY is cheaper at 0.09% per year. On volatility, XHS has been the lower-risk option at 4.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHS or SPY?

Over the 10-year period, SPY has performed better with a 15.53% return vs 8.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHS or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.35% for XHS.

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

SPY has the higher dividend yield at 1.03%, compared with 0.22% for XHS.

What is the main difference between XHS and SPY?

XHS is categorized as Health & Biotech Equities, while SPY is S&P 500. XHS tracks S&P Health Care Services Select Industry Index, while SPY tracks S&P 500 Index. Their fees differ too: 0.35% for XHS and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 1.60), 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.