XLV vs. XBI

Last updated Jun 26, 2026

XLV (State Street Health Care Select Sector SPDR ETF) and XBI (SPDR S&P Biotech ETF) are both Health & Biotech Equities funds from State Street - XLV tracks the Health Care Select Sector Index while XBI tracks the S&P Biotechnology Select Industry Index. Both are passively managed. Over the past 10 years, XLV returned 10.40%/yr vs 11.96%/yr for XBI. A 0.63 correlation means they provide meaningful diversification when combined. XLV charges 0.08%/yr vs 0.35%/yr for XBI.

Performance

XLV vs. XBI - 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 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, XLV achieves a 1.39% return, which is significantly lower than XBI's 24.45% return. Over the past 10 years, XLV has underperformed XBI with an annualized return of 10.40%, while XBI has yielded a comparatively higher 11.96% annualized return.

XLV

• 1D: 1.49%
• 1M: 5.26%
• YTD: 1.39%
• 6M: 0.74%
• 1Y: 18.26%
• 3Y*: 7.63%
• 5Y*: 6.07%
• 10Y*: 10.40%

XBI

• 1D: 1.26%
• 1M: 13.79%
• YTD: 24.45%
• 6M: 20.14%
• 1Y: 82.88%
• 3Y*: 22.41%
• 5Y*: 1.92%
• 10Y*: 11.96%

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

XLV vs. XBI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLV State Street Health Care Select Sector SPDR ETF	1.39%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%
XBI SPDR S&P Biotech ETF	24.45%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%

Correlation

The correlation between XLV and XBI is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.63

The correlation between XLV and XBI shifts across timeframes, from 0.52 (1 year) to 0.63 (all time), reflecting how their relationship changes across market environments.

XLV vs. XBI - Sectors Allocation Comparison

Sectors	XLV	XBI
Healthcare	100.0%	99.7%
Basic Materials	-	0.2%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.3%
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLV vs. XBI — Risk / Return Rank

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

XLV

XLV Risk / Return Rank: 37
XLV Sharpe Ratio Rank: 38
XLV Sortino Ratio Rank: 42
XLV Omega Ratio Rank: 35
XLV Calmar Ratio Rank: 39
XLV Martin Ratio Rank: 31

XBI

XBI Risk / Return Rank: 94
XBI Sharpe Ratio Rank: 95
XBI Sortino Ratio Rank: 93
XBI Omega Ratio Rank: 89
XBI Calmar Ratio Rank: 97
XBI Martin Ratio Rank: 95

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. XBI - 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 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.

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.

	XLV	XBI	Difference
Sharpe ratio: Return per unit of total volatility	1.21	3.15	-1.94
Sortino ratio: Return per unit of downside risk	1.91	4.01	-2.10
Omega ratio: Gain probability vs. loss probability	1.21	1.48	-0.27
Calmar ratio: Return relative to maximum drawdown	1.75	8.57	-6.82
Martin ratio: Return relative to average drawdown	4.13	25.32	-21.19

XLV vs. XBI - Sharpe Ratio Comparison

The current XLV Sharpe Ratio is 1.21, which is lower than the XBI Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of XLV 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.

Drawdowns

XLV vs. XBI - Drawdown Comparison

The maximum XLV drawdown since its inception was -39.17%, smaller than the maximum XBI drawdown of -63.89%. Use the drawdown chart below to compare losses from any high point for XLV and XBI.

Drawdown Indicators

	XLV	XBI	Difference
Max Drawdown Largest peak-to-trough decline	-39.17%	-63.89%	+24.72%
Max Drawdown (1Y) Largest decline over 1 year	-10.47%	-9.72%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-17.11%	-32.99%	+15.88%
Max Drawdown (5Y) Largest decline over 5 years	-17.11%	-54.71%	+37.60%
Max Drawdown (10Y) Largest decline over 10 years	-28.40%	-63.89%	+35.49%
Current Drawdown Current decline from peak	-2.02%	-12.30%	+10.28%
Average Drawdown Average peak-to-trough decline	-7.11%	-20.93%	+13.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.43%	3.28%	+1.15%

Volatility

XLV vs. XBI - Volatility Comparison

The current volatility for State Street Health Care Select Sector SPDR ETF (XLV) is 5.25%, while SPDR S&P Biotech ETF (XBI) has a volatility of 9.94%. This indicates that XLV 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

	XLV	XBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.25%	9.94%	-4.69%
Volatility (6M) Calculated over the trailing 6-month period	10.76%	21.13%	-10.37%
Volatility (1Y) Calculated over the trailing 1-year period	15.13%	26.48%	-11.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.79%	32.30%	-17.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.57%	32.00%	-15.43%

XLV vs. XBI - Expense Ratio Comparison

XLV has a 0.08% expense ratio, which is lower than XBI's 0.35% expense ratio.

Dividends

XLV vs. XBI - Dividend Comparison

XLV's dividend yield for the trailing twelve months is around 1.63%, more than XBI's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XBI SPDR S&P Biotech ETF	0.38%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%
XLV State Street Health Care Select Sector SPDR ETF	1.63%	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 XBI in my portfolio?

XLV and XBI have a correlation of 0.52, 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 XBI?

XBI has higher volatility (9.94%) compared to XLV (5.25%). In terms of maximum drawdown, XLV dropped -39.17% vs XBI's -63.89%.

Which ETF is better, XLV or XBI?

On 10-year performance, XBI leads with 11.96% vs 10.40% for XLV. On fees, XLV is cheaper at 0.08% per year. On volatility, XLV has been the lower-risk option at 5.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLV or XBI?

Over the 10-year period, XBI has performed better with a 11.96% return vs 10.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLV or XBI?

XLV is cheaper with a 0.08% expense ratio, compared with 0.35% for XBI.

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

XLV has the higher dividend yield at 1.63%, compared with 0.38% for XBI.

What is the main difference between XLV and XBI?

XLV tracks Health Care Select Sector Index, while XBI tracks S&P Biotechnology Select Industry Index. Their fees differ too: 0.08% for XLV and 0.35% for XBI.

Which has better risk-adjusted returns?

XBI currently has the higher Sharpe Ratio (3.15 vs 1.21), 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.