XPH vs. XLE

Last updated Aug 4, 2026

XPH (SPDR S&P Pharmaceuticals ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - XPH is a Health & Biotech Equities fund tracking the S&P Pharmaceuticals Select Industry Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, XPH returned 4.80%/yr vs 10.08%/yr for XLE. Their 0.40 correlation means their historical movements had little consistent relationship. XPH charges 0.35%/yr vs 0.08%/yr for XLE.

Performance

XPH vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Pharmaceuticals ETF (XPH) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XPH achieves a 22.08% return, which is significantly lower than XLE's 33.31% return. Over the past 10 years, XPH has underperformed XLE with an annualized return of 4.80%, while XLE has yielded a comparatively higher 10.08% annualized return.

XPH

• 1D: 0.25%
• 1M: 1.59%
• 6M: 19.87%
• YTD: 22.08%
• 1Y: 64.62%
• 3Y*: 17.93%
• 5Y*: 7.45%
• 10Y*: 4.80%
• ALL TIME*: 9.39%

XLE

• 1D: -1.28%
• 1M: 10.47%
• 6M: 19.08%
• YTD: 33.31%
• 1Y: 41.66%
• 3Y*: 14.20%
• 5Y*: 23.80%
• 10Y*: 10.08%
• ALL TIME*: 8.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
XLE State Street Energy Select Sector SPDR ETF	$1.70B	$1.73B	$1.97B
XPH SPDR S&P Pharmaceuticals ETF	$7.06M	$7.70M	$5.53M

XPH vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XPH SPDR S&P Pharmaceuticals ETF	22.08%	31.60%	4.94%	2.97%	-9.83%	-10.54%	14.68%	25.61%	-15.32%	12.05%
XLE State Street Energy Select Sector SPDR ETF	33.31%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between XPH and XLE is -0.15, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.15
Correlation (3Y) Balances recent behavior with more history.	0.12
Correlation (5Y) Shows whether the relationship held over a longer period.	0.21
Correlation (10Y) Provides a long-term view across more market conditions.	0.32
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.40

The correlation between XPH and XLE shifts across timeframes, from -0.15 (1 year) to 0.40 (all time), reflecting how their relationship changes across market environments.

XPH vs. XLE - Sectors Allocation Comparison

Sectors	XPH	XLE
Healthcare	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	100.0%
Financial Services	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XPH vs. XLE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XPH

XPH Risk / Return Rank: 94
XPH Sharpe Ratio Rank: 95
XPH Sortino Ratio Rank: 94
XPH Omega Ratio Rank: 92
XPH Calmar Ratio Rank: 95
XPH Martin Ratio Rank: 94

XLE

XLE Risk / Return Rank: 75
XLE Sharpe Ratio Rank: 84
XLE Sortino Ratio Rank: 79
XLE Omega Ratio Rank: 76
XLE Calmar Ratio Rank: 78
XLE Martin Ratio Rank: 61

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XPH vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Pharmaceuticals ETF (XPH) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	XPH	XLE	Difference
Sharpe ratio: Return per unit of total volatility	2.88	1.99	+0.89
Sortino ratio: Return per unit of downside risk	3.77	2.58	+1.20
Omega ratio: Gain probability vs. loss probability	1.46	1.32	+0.13
Calmar ratio: Return relative to maximum drawdown	5.43	2.79	+2.63
Martin ratio: Return relative to average drawdown	19.31	7.45	+11.85

XPH vs. XLE - Sharpe Ratio Comparison

The current XPH Sharpe Ratio is 2.88, which is higher than the XLE Sharpe Ratio of 1.99. The chart below compares the historical Sharpe Ratios of XPH and XLE, 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

XPH vs. XLE - Drawdown Comparison

The maximum XPH drawdown since its inception was -48.03%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for XPH and XLE.

Drawdown Indicators

	XPH	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-48.03%	-71.26%	+23.23%
Max Drawdown (1Y) Largest decline over 1 year	-11.97%	-14.98%	+3.01%
Max Drawdown (3Y) Largest decline over 3 years	-23.57%	-20.14%	-3.43%
Max Drawdown (5Y) Largest decline over 5 years	-30.92%	-26.04%	-4.88%
Max Drawdown (10Y) Largest decline over 10 years	-35.97%	-66.81%	+30.84%
Current Drawdown Current decline from peak	-2.60%	-5.35%	+2.75%
Average Drawdown Average peak-to-trough decline	-17.12%	-17.93%	+0.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.36%	5.60%	-2.24%

Volatility

XPH vs. XLE - Volatility Comparison

SPDR S&P Pharmaceuticals ETF (XPH) has a higher volatility of 7.62% compared to State Street Energy Select Sector SPDR ETF (XLE) at 6.13%. This indicates that XPH's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XPH	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.62%	6.13%	+1.49%
Volatility (6M) Calculated over the trailing 6-month period	17.53%	16.74%	+0.79%
Volatility (1Y) Calculated over the trailing 1-year period	22.59%	21.04%	+1.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.02%	25.77%	-4.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.14%	29.58%	-7.44%

XPH vs. XLE - Expense Ratio Comparison

XPH has a 0.35% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

XPH vs. XLE - Dividend Comparison

XPH's dividend yield for the trailing twelve months is around 0.49%, less than XLE's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLE State Street Energy Select Sector SPDR ETF	2.58%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%
XPH SPDR S&P Pharmaceuticals ETF	0.49%	0.83%	1.58%	1.28%	1.64%	0.95%	0.47%	0.64%	0.65%	0.67%	0.63%	7.15%

Frequently Asked Questions

Can I hold both XPH and XLE in my portfolio?

XPH and XLE have a correlation of -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XPH or XLE?

XPH has higher volatility (7.62%) compared to XLE (6.13%). In terms of maximum drawdown, XPH dropped -48.03% vs XLE's -71.26%.

Which ETF is better, XPH or XLE?

On 10-year performance, XLE leads with 10.08% vs 4.80% for XPH. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 6.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XPH or XLE?

Over the 10-year period, XLE has performed better with a 10.08% return vs 4.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XPH or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.35% for XPH.

Which ETF pays a higher dividend yield, XPH or XLE?

XLE has the higher dividend yield at 2.58%, compared with 0.49% for XPH.

What is the main difference between XPH and XLE?

XPH is categorized as Health & Biotech Equities, while XLE is Energy Equities. XPH tracks S&P Pharmaceuticals Select Industry Index, while XLE tracks Energy Select Sector Index. Their fees differ too: 0.35% for XPH and 0.08% for XLE.

Which has better risk-adjusted returns?

XPH currently has the higher Sharpe Ratio (2.88 vs 1.99), 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.