XLV vs. DXJ

Last updated Jun 9, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and DXJ (WisdomTree Japan Hedged Equity Fund) are both exchange-traded funds - XLV is a Health & Biotech Equities fund tracking the Health Care Select Sector Index, while DXJ is a Japan Equities fund tracking the WisdomTree Japan Hedged Equity Index. Both are passively managed. Over the past 10 years, XLV returned 9.65%/yr vs 18.23%/yr for DXJ. At a 0.50 correlation, their price movements are largely independent. XLV charges 0.08%/yr vs 0.48%/yr for DXJ.

Performance

XLV vs. DXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Health Care Select Sector SPDR ETF (XLV) and WisdomTree Japan Hedged Equity Fund (DXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLV achieves a -0.98% return, which is significantly lower than DXJ's 17.86% return. Over the past 10 years, XLV has underperformed DXJ with an annualized return of 9.65%, while DXJ has yielded a comparatively higher 18.23% annualized return.

XLV

• 1D: -0.24%
• 1M: 6.38%
• YTD: -0.98%
• 6M: 1.65%
• 1Y: 15.62%
• 3Y*: 7.16%
• 5Y*: 6.05%
• 10Y*: 9.65%

DXJ

• 1D: 0.39%
• 1M: 2.00%
• YTD: 17.86%
• 6M: 21.01%
• 1Y: 51.36%
• 3Y*: 31.77%
• 5Y*: 25.93%
• 10Y*: 18.23%

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

XLV vs. DXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	-0.98%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
DXJ WisdomTree Japan Hedged Equity Fund	17.86%	32.78%	29.83%	42.04%	5.96%	17.99%	3.94%	18.94%	-19.78%	22.81%

Correlation

The correlation between XLV and DXJ is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.50

Over the past year, the correlation between XLV and DXJ has dropped to 0.27 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.

XLV vs. DXJ - Sectors Allocation Comparison

Sectors	XLV	DXJ
Healthcare	100.0%	6.8%
Basic Materials	-	8.5%
Communication Services	-	2.7%
Consumer Cyclical	-	15.6%
Consumer Defensive	-	4.7%
Energy	-	1.7%
Financial Services	-	18.3%
Industrials	-	27.4%
Real Estate	-	-
Technology	-	12.9%
Utilities	-	0.1%

Return for Risk

XLV vs. DXJ — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 32
XLV Sharpe Ratio Rank: 32
XLV Sortino Ratio Rank: 34
XLV Omega Ratio Rank: 31
XLV Calmar Ratio Rank: 33
XLV Martin Ratio Rank: 28

DXJ

DXJ Risk / Return Rank: 90
DXJ Sharpe Ratio Rank: 92
DXJ Sortino Ratio Rank: 91
DXJ Omega Ratio Rank: 90
DXJ Calmar Ratio Rank: 88
DXJ Martin Ratio Rank: 89

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.

XLV vs. DXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Health Care Select Sector SPDR ETF (XLV) and WisdomTree Japan Hedged Equity Fund (DXJ). 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.

	XLV	DXJ	Difference
Sharpe ratio: Return per unit of total volatility	1.05	2.94	-1.89
Sortino ratio: Return per unit of downside risk	1.68	3.96	-2.28
Omega ratio: Gain probability vs. loss probability	1.19	1.53	-0.34
Calmar ratio: Return relative to maximum drawdown	1.50	4.70	-3.20
Martin ratio: Return relative to average drawdown	3.60	18.34	-14.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLV vs. DXJ - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 1.05, which is lower than the DXJ Sharpe Ratio of 2.94. The chart below compares the historical Sharpe Ratios of XLV and DXJ, 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

	XLV	DXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.05	2.94	-1.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	1.37	-0.96
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.91	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.42	+0.04

Drawdowns

XLV vs. DXJ - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, smaller than the maximum DXJ drawdown of -49.63%. Use the drawdown chart below to compare losses from any high point for XLV and DXJ.

Drawdown Indicators

	XLV	DXJ	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-49.63%	+10.46%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-10.98%	+0.51%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-22.19%	+5.08%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-22.19%	+5.08%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-39.14%	+10.74%
Current Drawdown Current decline from peak	-4.32%	-2.06%	-2.26%
Average Drawdown Average peak-to-trough decline	-7.12%	-14.33%	+7.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.35%	2.81%	+1.54%

Volatility

XLV vs. DXJ - Volatility Comparison

State Street Health Care Select Sector SPDR ETF (XLV) has a higher volatility of 5.02% compared to WisdomTree Japan Hedged Equity Fund (DXJ) at 4.19%. This indicates that XLV's price experiences larger fluctuations and is considered to be riskier than DXJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLV	DXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.02%	4.19%	+0.83%
Volatility (6M) Calculated over the trailing 6-month period	10.66%	13.33%	-2.67%
Volatility (1Y) Calculated over the trailing 1-year period	14.99%	17.58%	-2.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.76%	19.00%	-4.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.58%	20.19%	-3.61%

XLV vs. DXJ - Expense Ratio Comparison

XLV has a 0.08% expense ratio, which is lower than DXJ's 0.48% expense ratio.

Dividends

XLV vs. DXJ - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.64%, more than DXJ's 1.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DXJ WisdomTree Japan Hedged Equity Fund	1.10%	1.29%	3.48%	3.44%	3.02%	2.64%	2.53%	2.47%	2.92%	2.30%	1.98%	5.95%
XLV State Street Health Care Select Sector SPDR ETF	1.64%	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 XLV and DXJ in my portfolio?

XLV and DXJ have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLV or DXJ?

XLV has higher volatility (5.02%) compared to DXJ (4.19%). In terms of maximum drawdown, XLV dropped -39.17% vs DXJ's -49.63%.

Which ETF is better, XLV or DXJ?

On 10-year performance, DXJ leads with 18.23% vs 9.65% for XLV. On fees, XLV is cheaper at 0.08% per year. On volatility, DXJ has been the lower-risk option at 4.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLV or DXJ?

Over the 10-year period, DXJ has performed better with a 18.23% return vs 9.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLV or DXJ?

XLV is cheaper with a 0.08% expense ratio, compared with 0.48% for DXJ.

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

XLV has the higher dividend yield at 1.64%, compared with 1.10% for DXJ.

What is the main difference between XLV and DXJ?

XLV is categorized as Health & Biotech Equities, while DXJ is Japan Equities. XLV tracks Health Care Select Sector Index, while DXJ tracks WisdomTree Japan Hedged Equity Index. They also come from different issuers: State Street and WisdomTree. Their fees differ too: 0.08% for XLV and 0.48% for DXJ.

Which has better risk-adjusted returns?

DXJ currently has the higher Sharpe Ratio (2.94 vs 1.05), 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.