XLE vs XLV
State Street Energy Select Sector SPDR ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
XLE delivered stronger 1-year returns. XLV offers more diversification with 63 holdings.
Side-by-Side Comparison
| Metric | XLE | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.08% | |
| AUM | $40.0B | $43.9B | |
| Dividend Yield | 2.55% | 1.56% | |
| Holdings | 24 | 63 | |
| YTD Return | +41.33% | +13.25% | |
| 1Y Return | +51.94% | +29.65% | |
| 3Y Return (annualized) | +16.98% | +11.30% | |
| 5Y Return (annualized) | +26.28% | +6.83% | |
| Volatility (annualized) | 25.1% | 14.2% | |
| Max Drawdown | -76.7% | -40.6% | |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
XLE vs XLV Performance
State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors and State Street Health Care Select Sector SPDR ETF (XLV) is a ETF from SPDR State Street Global Advisors. Over the past year XLE returned +51.94% while XLV returned +29.65%. Year to date, XLE is up 41.33% versus a gain of 13.25% for XLV.
Over three years, XLE compounded at +16.98% per year against +11.30% for XLV; over five years the annualized figures are +26.28% and +6.83% respectively. Across the full 28-year window we track, XLV has the edge at +7.62% annualized vs +7.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% compared with 14.2% for XLV. 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 -76.7% for XLE and -40.6% for XLV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
XLE charges 0.08% per year while XLV charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, XLE currently yields 2.55% against 1.56% for XLV.
Holdings Overlap
XLE and XLV share 0 holdings out of 82 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, XLE or XLV?
XLE has an expense ratio of 0.08% while XLV charges 0.08%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, XLE or XLV?
Over the past year XLE returned +51.94% vs +29.65% for XLV, so XLE leads on 1-year performance. Over the longest common window we track (28 years), XLE annualized +7.12% vs +7.62% for XLV. Past performance does not guarantee future results.
Which is riskier, XLE or XLV?
XLE has been the more volatile fund at 25.1% annualized versus 14.2% for XLV. Worst drawdown: XLE -76.7% vs XLV -40.6%.
Should I hold both XLE and XLV?
XLE and XLV have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between XLE and XLV?
XLE and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 82 unique securities.
Which pays a higher dividend, XLE or XLV?
XLE yields 2.55% while XLV yields 1.56%, so XLE currently pays the higher dividend yield.
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