XSW vs. XLV

Last updated Jul 14, 2026

XSW (SPDR S&P Software & Services ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both exchange-traded funds - XSW is a Technology Equities fund tracking the S&P Software & Services Select Industry Index, while XLV is a Health & Biotech Equities fund tracking the Health Care Select Sector Index. Both are passively managed. Over the past 10 years, XSW returned 13.25%/yr vs 9.92%/yr for XLV. At a 0.49 correlation, their price movements are largely independent. XSW charges 0.35%/yr vs 0.08%/yr for XLV.

Performance

XSW vs. XLV - Performance Comparison

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

Returns By Period

In the year-to-date period, XSW achieves a -4.56% return, which is significantly lower than XLV's 5.16% return. Over the past 10 years, XSW has outperformed XLV with an annualized return of 13.25%, while XLV has yielded a comparatively lower 9.92% annualized return.

XSW

• 1D: 0.88%
• 1M: 7.50%
• 6M: -6.34%
• YTD: -4.56%
• 1Y: -3.96%
• 3Y*: 8.75%
• 5Y*: 1.43%
• 10Y*: 13.25%

XLV

• 1D: 0.35%
• 1M: 5.40%
• 6M: 3.44%
• YTD: 5.16%
• 1Y: 21.48%
• 3Y*: 8.82%
• 5Y*: 6.34%
• 10Y*: 9.92%

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

XSW vs. XLV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XSW SPDR S&P Software & Services ETF	-4.56%	-0.90%	25.81%	38.60%	-34.22%	7.47%	52.41%	36.50%	7.67%	27.94%
XLV State Street Health Care Select Sector SPDR ETF	5.16%	14.50%	2.47%	2.07%	-2.08%	26.04%	13.30%	20.45%	6.28%	21.77%

Correlation

The correlation between XSW and XLV is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.49

Over the past year, the correlation between XSW and XLV has dropped to 0.15 - well below their long-term average of 0.49, suggesting their price drivers have been diverging.

XSW vs. XLV - Sectors Allocation Comparison

Sectors	XSW	XLV
Technology	85.9%	-
Financial Services	9.0%	-
Communication Services	2.7%	-
Consumer Cyclical	1.1%	-
Healthcare	0.8%	100.0%
Industrials	0.6%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XSW vs. XLV — Risk / Return Rank

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

XSW

XSW Risk / Return Rank: 8
XSW Sharpe Ratio Rank: 8
XSW Sortino Ratio Rank: 8
XSW Omega Ratio Rank: 8
XSW Calmar Ratio Rank: 8
XSW Martin Ratio Rank: 8

XLV

XLV Risk / Return Rank: 49
XLV Sharpe Ratio Rank: 50
XLV Sortino Ratio Rank: 57
XLV Omega Ratio Rank: 47
XLV Calmar Ratio Rank: 52
XLV Martin Ratio Rank: 39

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.

XSW vs. XLV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) and State Street Health Care Select Sector SPDR ETF (XLV). 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.

	XSW	XLV	Difference
Sharpe ratio: Return per unit of total volatility	-0.14	1.37	-1.51
Sortino ratio: Return per unit of downside risk	0.01	2.17	-2.16
Omega ratio: Gain probability vs. loss probability	1.00	1.24	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.12	2.06	-2.18
Martin ratio: Return relative to average drawdown	-0.24	4.88	-5.12

XSW vs. XLV - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.14, which is lower than the XLV Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of XSW and XLV, 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

XSW vs. XLV - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, which is greater than XLV's maximum drawdown of -39.17%. Use the drawdown chart below to compare losses from any high point for XSW and XLV.

Drawdown Indicators

	XSW	XLV	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-39.17%	-6.21%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-10.47%	-23.28%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-17.11%	-16.64%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	-17.11%	-28.27%
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	-28.40%	-16.98%
Current Drawdown Current decline from peak	-12.97%	-1.84%	-11.13%
Average Drawdown Average peak-to-trough decline	-9.88%	-7.11%	-2.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.67%	4.41%	+12.26%

Volatility

XSW vs. XLV - Volatility Comparison

SPDR S&P Software & Services ETF (XSW) has a higher volatility of 7.88% compared to State Street Health Care Select Sector SPDR ETF (XLV) at 5.76%. This indicates that XSW's price experiences larger fluctuations and is considered to be riskier than XLV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSW	XLV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.88%	5.76%	+2.12%
Volatility (6M) Calculated over the trailing 6-month period	24.53%	11.53%	+13.00%
Volatility (1Y) Calculated over the trailing 1-year period	29.16%	15.75%	+13.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.04%	14.93%	+14.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.29%	16.61%	+9.68%

XSW vs. XLV - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is higher than XLV's 0.08% expense ratio.

Dividends

XSW vs. XLV - Dividend Comparison

XSW has not paid dividends to shareholders, while XLV's dividend yield for the trailing twelve months is around 1.57%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLV State Street Health Care Select Sector SPDR ETF	1.57%	1.60%	1.67%	1.59%	1.47%	1.33%	1.49%	2.17%	1.57%	1.47%	1.60%	1.43%
XSW SPDR S&P Software & Services ETF	0.00%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and XLV in my portfolio?

XSW and XLV 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, XSW or XLV?

XSW has higher volatility (7.88%) compared to XLV (5.76%). In terms of maximum drawdown, XSW dropped -45.38% vs XLV's -39.17%.

Which ETF is better, XSW or XLV?

On 10-year performance, XSW leads with 13.25% vs 9.92% for XLV. On fees, XLV is cheaper at 0.08% per year. On volatility, XLV has been the lower-risk option at 5.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or XLV?

Over the 10-year period, XSW has performed better with a 13.25% return vs 9.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or XLV?

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

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

XLV has the higher dividend yield at 1.57%, compared with 0.00% for XSW.

What is the main difference between XSW and XLV?

XSW is categorized as Technology Equities, while XLV is Health & Biotech Equities. XSW tracks S&P Software & Services Select Industry Index, while XLV tracks Health Care Select Sector Index. Their fees differ too: 0.35% for XSW and 0.08% for XLV.

Which has better risk-adjusted returns?

XLV currently has the higher Sharpe Ratio (1.37 vs -0.14), 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.