XLV vs. FHLC

Last updated Jun 3, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and FHLC (Fidelity MSCI Health Care Index ETF) are both Health & Biotech Equities funds - XLV tracks the Health Care Select Sector Index while FHLC tracks the MSCI USA IMI Health Care Index. Both are passively managed. Over the past 10 years, XLV returned 9.12%/yr vs 9.05%/yr for FHLC. With a 0.98 correlation, they move nearly in lockstep. Both charge a 0.08% expense ratio.

Performance

XLV vs. FHLC - 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 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, XLV achieves a -5.04% return, which is significantly lower than FHLC's -4.68% return. Both investments have delivered pretty close results over the past 10 years, with XLV having a 9.12% annualized return and FHLC not far behind at 9.05%.

XLV

• 1D: -0.97%
• 1M: 0.85%
• YTD: -5.04%
• 6M: -4.36%
• 1Y: 12.27%
• 3Y*: 5.70%
• 5Y*: 5.45%
• 10Y*: 9.12%

FHLC

• 1D: -1.25%
• 1M: 0.66%
• YTD: -4.68%
• 6M: -4.34%
• 1Y: 13.84%
• 3Y*: 5.85%
• 5Y*: 4.42%
• 10Y*: 9.05%

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

XLV vs. FHLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	-5.04%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
FHLC Fidelity MSCI Health Care Index ETF	-4.68%	15.42%	2.48%	2.58%	-5.55%	20.39%	18.13%	21.94%	4.71%	23.34%

Correlation

The correlation between XLV and FHLC is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since Oct 25, 2013	0.98

The correlation between XLV and FHLC has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

XLV vs. FHLC - Sectors Allocation Comparison

Sectors	XLV	FHLC
Healthcare	100.0%	99.6%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.1%
Industrials	-	0.0%
Real Estate	-	-
Technology	-	0.0%
Utilities	-	-

Return for Risk

XLV vs. FHLC — 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: 25
XLV Omega Ratio Rank: 23
XLV Calmar Ratio Rank: 25
XLV Martin Ratio Rank: 22

FHLC

FHLC Risk / Return Rank: 27
FHLC Sharpe Ratio Rank: 27
FHLC Sortino Ratio Rank: 28
FHLC Omega Ratio Rank: 26
FHLC Calmar Ratio Rank: 27
FHLC Martin Ratio Rank: 25

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. FHLC - 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 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.

	XLV	FHLC	Difference
Sharpe ratio Return per unit of total volatility	0.84	0.97	-0.13
Sortino ratio Return per unit of downside risk	1.36	1.52	-0.17
Omega ratio Gain probability vs. loss probability	1.15	1.17	-0.02
Calmar ratio Return relative to maximum drawdown	1.18	1.35	-0.18
Martin ratio Return relative to average drawdown	2.87	3.44	-0.57
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. FHLC - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 0.84, which is comparable to the FHLC Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of XLV 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.

Sharpe Ratios by Period

	XLV	FHLC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.84	0.97	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.30	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.54	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.60	-0.15

Drawdowns

XLV vs. FHLC - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, which is greater than FHLC's maximum drawdown of -28.76%. Use the drawdown chart below to compare losses from any high point for XLV and FHLC.

Drawdown Indicators

	XLV	FHLC	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-28.76%	-10.41%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-10.38%	-0.09%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-16.87%	-0.24%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-17.73%	+0.62%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-28.76%	+0.36%
Current Drawdown Current decline from peak	-8.24%	-7.71%	-0.53%
Average Drawdown Average peak-to-trough decline	-7.12%	-5.19%	-1.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.30%	4.09%	+0.21%

Volatility

XLV vs. FHLC - Volatility Comparison

State Street Health Care Select Sector SPDR ETF (XLV) and Fidelity MSCI Health Care Index ETF (FHLC) have volatilities of 4.05% and 3.97%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLV	FHLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	3.97%	+0.08%
Volatility (6M) Calculated over the trailing 6-month period	10.32%	10.17%	+0.15%
Volatility (1Y) Calculated over the trailing 1-year period	14.65%	14.31%	+0.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.69%	14.96%	-0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.55%	16.82%	-0.27%

XLV vs. FHLC - Expense Ratio Comparison

Both XLV and FHLC have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XLV vs. FHLC - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.71%, more than FHLC's 1.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FHLC Fidelity MSCI Health Care Index ETF	1.44%	1.40%	1.51%	1.40%	1.30%	1.16%	1.45%	1.18%	1.38%	1.38%	1.40%	2.07%
XLV State Street Health Care Select Sector SPDR ETF	1.71%	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 FHLC in my portfolio?

With a correlation of 0.99, XLV and FHLC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLV or FHLC?

XLV has higher volatility (4.05%) compared to FHLC (3.97%). In terms of maximum drawdown, XLV dropped -39.17% vs FHLC's -28.76%.

Which ETF is better, XLV or FHLC?

On 10-year performance, XLV leads with 9.12% vs 9.05% for FHLC. Both ETFs have the same 0.08% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLV or FHLC?

Over the 10-year period, XLV has performed better with a 9.12% return vs 9.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLV or FHLC?

XLV and FHLC have the same expense ratio: 0.08% per year.

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

XLV has the higher dividend yield at 1.71%, compared with 1.44% for FHLC.

What is the main difference between XLV and FHLC?

XLV tracks Health Care Select Sector Index, while FHLC tracks MSCI USA IMI Health Care Index. They also come from different issuers: State Street and Fidelity.

Which has better risk-adjusted returns?

FHLC currently has the higher Sharpe Ratio (0.97 vs 0.84), 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.