XLF vs XLV
State Street Financial Select Sector SPDR ETF vs State Street Health Care Select Sector SPDR ETF
Quick Verdict
XLV delivered stronger 1-year returns. XLF offers more diversification with 80 holdings.
Side-by-Side Comparison
| Metric | XLF | XLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.08% | |
| AUM | $58.6B | $43.9B | |
| Dividend Yield | 1.42% | 1.56% | |
| Holdings | 80 | 63 | |
| YTD Return | +4.58% | +11.80% | |
| 1Y Return | +9.39% | +27.56% | |
| 3Y Return (annualized) | +20.74% | +10.70% | |
| 5Y Return (annualized) | +10.51% | +6.55% | |
| Volatility (annualized) | 21.4% | 14.2% | |
| Max Drawdown | -83.8% | -40.6% | |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
XLF vs XLV Performance
State Street Financial Select Sector SPDR ETF (XLF) 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 XLF returned +9.39% while XLV returned +27.56%. Year to date, XLF is up 4.58% versus a gain of 11.80% for XLV.
Over three years, XLF compounded at +20.74% per year against +10.70% for XLV; over five years the annualized figures are +10.51% and +6.55% respectively. Across the full 28-year window we track, XLV has the edge at +7.57% annualized vs +3.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLF has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -83.8% for XLF 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
XLF charges 0.08% per year while XLV charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, XLF currently yields 1.42% against 1.56% for XLV.
Holdings Overlap
XLF and XLV share 0 holdings out of 137 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, XLF or XLV?
XLF 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, XLF or XLV?
Over the past year XLF returned +9.39% vs +27.56% for XLV, so XLV leads on 1-year performance. Over the longest common window we track (28 years), XLF annualized +3.64% vs +7.57% for XLV. Past performance does not guarantee future results.
Which is riskier, XLF or XLV?
XLF has been the more volatile fund at 21.4% annualized versus 14.2% for XLV. Worst drawdown: XLF -83.8% vs XLV -40.6%.
Should I hold both XLF and XLV?
XLF and XLV have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between XLF and XLV?
XLF and XLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, XLF or XLV?
XLF yields 1.42% while XLV yields 1.56%, so XLV currently pays the higher dividend yield.
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