BME vs XLF
BlackRock Health Sciences Trust vs State Street Financial Select Sector SPDR ETF
Which is better, BME or XLF?
Each has led over a different period.
XLF has a lower expense ratio. BME led over 1Y and the full window, XLF over 3Y and 5Y. BME is less concentrated, with 51.5% of the fund in its ten largest positions against 57.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BME | XLF |
|---|---|---|
| Expense Ratio | 1.14% | 0.08%Best |
| AUM | $591M | $51.9B |
| Dividend Yield | 6.87% | 1.40% |
| Holdings | 156 | 160 |
| YTD Return | +13.85%Best | +0.47% |
| 1Y Return | +26.79%Best | +4.02% |
| 3Y Return (annualized) | +12.27% | +19.43%Best |
| 5Y Return (annualized) | +5.83% | +8.82%Best |
| Volatility (annualized) | 17.1%Best | 22.0% |
| Max Drawdown | -44.6%Best | -83.8% |
| $10,000 over 5 years | $13,275 | $15,260Best |
| Top 10 Weight | 51.5%Best | 57.3% |
| Fund Family | BlackRock, Inc. (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Mar 31, 2005 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 29, 2005 to Oct 14, 2026 (21.5 years).
BME vs XLF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 21.5 years both funds cover.
BME vs XLF Performance
BlackRock Health Sciences Trust (BME) is an ETF from BlackRock, Inc. (US) and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year BME returned +26.79% while XLF returned +4.02%. Year to date, BME is up 13.85% versus a gain of 0.47% for XLF.
Over three years, BME compounded at +12.27% per year against +19.43% for XLF; over five years the annualized figures are +5.83% and +8.82% respectively. Across the full 22-year window we track, BME has the edge at +4.49% annualized vs +3.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 17.1% for BME. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.6% for BME and -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BME charges 1.14% per year while XLF charges 0.08%. On a $10,000 position that is $114 vs $8 annually, a gap of $106 per year that compounds over a long holding period. On income, BME currently yields 6.87% against 1.40% for XLF.
Holdings Overlap
We hold position weights for 133 holdings in BME and 77 in XLF, totalling 95.6% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 73 days apart, BME as of Jun 30, 2026 and XLF as of Sep 11, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 133 positions we hold weights for in BME and 77 in XLF, against full books of 156 and 160.
What only one of them owns
Our book lists 76 positions for XLF that do not appear in our book for BME (99.5% of the fund), and 113 for BME that do not appear in XLF (89.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of BME and XLF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BME or XLF?
BME has an expense ratio of 1.14% while XLF charges 0.08%. XLF is the cheaper option, by $106 a year on a $10,000 investment.
Which performed better, BME or XLF?
Over the past year BME returned +26.79% vs +4.02% for XLF, so BME leads on 1-year performance. Over the longest common window we track (22 years), BME annualized +4.49% vs +3.58% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BME or XLF?
XLF has been the more volatile fund at 22.0% annualized versus 17.1% for BME. Worst drawdown: BME -44.6% vs XLF -83.8%.
Should I hold both BME and XLF?
BME and XLF have a monthly-return correlation of 0.55, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BME or XLF?
BME yields 6.87% while XLF yields 1.40%, so BME currently pays the higher dividend yield.
Is XLF better than BME?
XLF has a lower expense ratio. BME led over 1Y and the full window, XLF over 3Y and 5Y. BME is less concentrated, with 51.5% of the fund in its ten largest positions against 57.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.