Average Daily Volume
9.93M
Fund Overview
The Health Care Select Sector SPDR Fund (XLV) is an exchange-traded fund that seeks to provide investment results that correspond generally to the price and yield performance of the Health Care Select Sector Index. This index includes companies from the health care sector of the S&P 500, such as pharmaceuticals, biotechnology, health care equipment, and managed health care providers. XLV offers investors a cost-effective way to gain broad exposure to the health care industry, which is known for its defensive characteristics and long-term growth potential. The fund is one of the largest and most liquid ETFs in the health care sector, making it a popular choice for both individual and institutional investors.
- Asset Class
-
Equity
- Industry
-
Broad Healthcare
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.63 %
- Currency Hedged
-
No
- Portfolio Turnover
-
2 %
- Dividend Date
-
Why Invest in the XLV ETF?
Potential Benefits
- Provides diversified exposure to the U.S. health care sector, including pharmaceuticals, biotechnology, and medical devices.
- Low expense ratio compared to actively managed health care funds, making it cost-efficient for long-term investors.
- High liquidity with tight bid-ask spreads, facilitating easy entry and exit for traders.
- Defensive sector characteristics, as health care demand tends to remain stable during economic downturns.
- Strong historical performance driven by innovation and an aging population increasing demand for health care services.
Potential Risks
- Regulatory risks, as government policies and drug pricing reforms can significantly impact health care companies.
- Sector concentration risk, as the fund is entirely focused on health care, leaving it vulnerable to sector-specific downturns.
- Biotech volatility, with smaller companies in the portfolio subject to high price swings based on clinical trial results.
- Patent expirations for major pharmaceutical holdings can lead to revenue declines and stock price pressure.
- Currency risk for multinational health care companies if the U.S. dollar strengthens significantly.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
0.0%
|
+3.5%
|
-8.1%
|
-0.4%
|
+2.4%
|
+6.6%
|
+2.5%
|
+4.9%
|
-0.9%
|
-0.8%
|
-
|
-
|
| 2025 |
+6.8%
|
+1.4%
|
-1.6%
|
-3.8%
|
-5.6%
|
+2.1%
|
-3.2%
|
+5.4%
|
+1.7%
|
+3.7%
|
+9.3%
|
-1.4%
|
| 2024 |
+2.9%
|
+3.2%
|
+2.4%
|
-5.0%
|
+2.4%
|
+1.8%
|
+2.7%
|
+5.1%
|
-1.7%
|
-4.6%
|
+0.4%
|
-6.3%
|
| 2023 |
-1.8%
|
-4.6%
|
+2.2%
|
+3.1%
|
-4.3%
|
+4.3%
|
+1.1%
|
-0.7%
|
-3.0%
|
-3.3%
|
+5.4%
|
+4.3%
|
| 2022 |
-6.9%
|
-1.0%
|
+5.7%
|
-4.9%
|
+1.5%
|
-2.6%
|
+3.2%
|
-5.8%
|
-2.5%
|
+9.6%
|
+4.7%
|
-1.9%
|
| 2021 |
+1.4%
|
-2.1%
|
+4.0%
|
+3.9%
|
+1.9%
|
+2.3%
|
+4.9%
|
+2.3%
|
-5.5%
|
+5.1%
|
-3.1%
|
+9.0%
|
| 2020 |
-2.7%
|
-6.6%
|
-3.9%
|
+12.6%
|
+3.3%
|
-2.4%
|
+5.5%
|
+2.6%
|
-2.2%
|
-3.6%
|
+7.9%
|
+3.8%
|
| 2019 |
+4.8%
|
+1.1%
|
+0.5%
|
-2.7%
|
-2.2%
|
+6.6%
|
-1.6%
|
-0.6%
|
-0.1%
|
+5.1%
|
+5.0%
|
+3.5%
|
| 2018 |
+6.6%
|
-4.5%
|
-2.9%
|
+1.1%
|
+0.2%
|
+1.6%
|
+6.6%
|
+4.3%
|
+3.0%
|
-6.8%
|
+8.1%
|
-9.3%
|
| 2017 |
+2.3%
|
+6.3%
|
-0.5%
|
+1.5%
|
+0.8%
|
+4.6%
|
+0.8%
|
+1.8%
|
+0.9%
|
-0.8%
|
+2.9%
|
-0.6%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
LLY
|
ELI LILLY AND CO |
11.7 % |
|
UNH
|
UNITEDHEALTH GROUP INC |
10.5 % |
|
JNJ
|
JOHNSON & JOHNSON |
7.2 % |
|
ABBV
|
ABBVIE INC |
6.3 % |
|
ABT
|
ABBOTT LABORATORIES |
4.4 % |
|
MRK
|
MERCK & CO INC |
4.1 % |
|
ISRG
|
INTUITIVE SURGICAL INC |
3.7 % |
|
TMO
|
THERMO FISHER SCIENTIFIC INC |
3.4 % |
|
AMGN
|
AMGEN INC |
3.1 % |
|
BSX
|
BOSTON SCIENTIFIC CORP |
2.8 % |
Top 10 holdings shown, out of 61 total holdings.
Related ETFs: XLV vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLV is a passively managed ETF that seeks to replicate the performance of the Health Care Select Sector Index. This index is a market-cap-weighted subset of the S&P 500, focusing exclusively on health care companies. The fund primarily holds common stocks of large-cap U.S. health care firms, with no use of derivatives or leverage. The index is rebalanced quarterly to ensure alignment with its market-cap weighting methodology. XLV's strategy is designed to provide broad, low-cost exposure to the health care sector without active stock selection.
Frequently Asked Questions
What types of companies are included in XLV?
XLV includes large-cap U.S. health care companies such as pharmaceuticals (e.g., Pfizer, Johnson & Johnson), biotechnology firms, medical device manufacturers, and managed health care providers.
How often is XLV rebalanced?
XLV's underlying index, the Health Care Select Sector Index, is rebalanced quarterly to maintain its market-cap-weighted structure.
Is XLV a good defensive ETF?
Yes, XLV is often considered defensive because health care demand tends to remain stable during economic downturns, though it is still subject to regulatory and sector-specific risks.
Does XLV pay dividends?
Yes, XLV pays quarterly dividends, as many of its holdings are large, established health care companies with consistent dividend policies.
How does XLV compare to investing in individual health care stocks?
XLV offers instant diversification across the health care sector, reducing the risk associated with individual stock selection while providing exposure to the sector's overall growth.
Industry Overview
The health care sector is a critical component of the global economy, driven by demographic trends like aging populations, increasing chronic diseases, and technological advancements. The XLV ETF provides exposure to this sector by tracking the Health Care Select Sector Index, which includes leading U.S. health care companies. Investing in XLV allows investors to participate in the growth of pharmaceuticals, biotechnology, medical devices, and managed care providers. The sector is often considered defensive, as health care demand remains relatively stable regardless of economic conditions. However, it is also subject to regulatory scrutiny and innovation-driven volatility.
Alternative Comparison
Compared to its closest peer, VHT (Vanguard Health Care ETF), XLV has a slightly lower expense ratio and higher liquidity, making it more attractive for cost-conscious and active traders. Unlike IBB (iShares Biotechnology ETF), which focuses narrowly on biotech firms, XLV offers diversified exposure across the entire health care sector, reducing single-industry risk. XLV also differs from XBI (SPDR S&P Biotech ETF), which uses an equal-weight strategy, by employing a market-cap-weighted approach that favors larger, more established health care companies.
Issuer Overview
XLV is issued by State Street Global Advisors (SSGA), one of the largest ETF providers in the world. SSGA is known for its SPDR ETF series, which includes sector-specific and broad-market funds. The firm has a strong reputation for low-cost, passive investment strategies and robust liquidity management. SSGA's expertise in index replication and ETF structure ensures that XLV closely tracks its benchmark while maintaining tight bid-ask spreads and high trading volumes.
Conclusion
XLV is a well-established, low-cost ETF that provides diversified exposure to the U.S. health care sector. Its passive strategy, high liquidity, and defensive characteristics make it a solid choice for investors seeking long-term growth with moderate risk. While regulatory and sector-specific risks exist, XLV's broad portfolio and strong historical performance position it as a core holding for health care exposure in a diversified investment portfolio.
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