# How State Street Health Care Select Sector SPDR ETF (XLV) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/xlv
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on XLV alone. It places XLV (State Street Health Care Select Sector SPDR ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where XLV stands in the market, and of the alternatives worth a closer look.

Period covered: XLV's full trading record, from December 1998 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **What you're buying:** XLV is a healthcare bet first: 99% of assets, versus 10% in the S&P 500.
- **Right now:** Over the past 6 months, XLV rose 23.0% against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Its similar funds were far apart over the past 6 months, from IHF (iShares U.S. Healthcare Providers ETF, up 32.6%) to XBI (State Street SPDR S&P Biotech ETF, up 11.3%).
- **Fund or market?:** XLV rose 13.4% over the past 3 months while the S&P 500 rose 3.9%. Its similar funds did not move as one over the past 3 months: BBH (VanEck Biotech ETF) rose 23.0%, while XBI (State Street SPDR S&P Biotech ETF) rose 1.5%.
- **Long term:** XLV turned $10,000 into $30,200 over the past decade, against $42,100 in the S&P 500. Even so, over the past decade, only PTH (Invesco Dorsey Wright Healthcare Momentum ETF) of its similar funds outpaced XLV.
- **In a crash:** XLV fell less than the S&P 500 in six of seven sell-offs, but the 2015 China and oil sell-off broke the pattern: it fell 15.9%, more than the S&P 500's 12.8%.
- **Diversification:** Against the S&P 500, XLV has a correlation of 0.58 over 5 years, less closely than 79% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. When the S&P 500 had a down month, XLV usually fell with it (19 of 22 months).
- **Better options**
  - **Popular alternatives:** VIG (Vanguard Dividend Appreciation ETF) earned more than XLV with less volatility over the past 5 years: 10.4% a year at 14.1% volatility, against 8.4% a year at 15.2%.
  - **Nearby categories and themes:** VTV (Vanguard Morningstar Value ETF, US large-cap value) and SCHD (Schwab U.S. Dividend Equity ETF, US dividend equity) earned more than XLV with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 8.4% a year at 15.2%.
  - **Whole market:** Few investments have done better on both counts: only 69 of the 3,633 stocks and funds worth at least $500 million earned more than XLV with less volatility over the past 5 years, among them VTV (Vanguard Morningstar Value ETF), VIG (Vanguard Dividend Appreciation ETF) and SCHD (Schwab U.S. Dividend Equity ETF).

## How much would $10,000 in XLV have grown?

This chart tracks a hypothetical $10,000 investment in XLV over the past 25 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of XLV over the same span and XLV's popular alternatives, among those that traded for the entire period.

- $10,000 invested in XLV at the end of September 2001 would have grown to $107,068 by September 2026, less than the $114,557 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of XLV, and AAPL finished highest, at $14,356,990.

## XLV at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- XLV is trading within 1% of its all-time high.
- XLV's deepest decline since it began trading in 1998 was 39.2%, from December 2007 to March 2009. It took 25 months from the low to climb back to its old high.
- Over 27 full calendar years, XLV's best was 2013, when it returned 41.4%, and its worst was 2008, when it lost 23.3%. It lost money in six of those years.

- Type: ETF, Healthcare (Asset Management)
- Trading since: December 22, 1998
- Assets: $46B
- Expense ratio: 0.08%
- Volatility (5 years): 15.3%; Sharpe ratio: 0.60
- Worst decline ever: −39.2%, from December 10, 2007 to March 9, 2009; back at its high by April 26, 2011

| Period | XLV total return |
| --- | --- |
| 1 month | +6.4% |
| 3 months | +13.4% |
| 6 months | +23.0% |
| year to date | +17.1% |
| 1 year | +26.3% |
| 3 years | +47.6% |
| 5 years | +49.3% |
| 10 years | +202% |

## XLV against the whole market

Where XLV ranks among every stock and fund, and what across the market has done better.

### How does XLV rank among all ETFs?

This section ranks XLV on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- XLV's 1-year return ranks in the top 10% of the 2,485 ETFs with at least $100 million in assets with 1 year of history.

| Measure | XLV | Rank |
| --- | --- | --- |
| 1-year return | +26.3% | 239 of 2,485 (top 10%) |
| 3-year return | +47.6% | 1,207 of 1,949 (top 62%) |
| 5-year return | +49.3% | 688 of 1,560 (top 45%) |
| 10-year return | +202% | 282 of 958 (top 30%) |
| Volatility, 5 years | 15.3% | 638 of 1,560 (top 41%) |
| Sharpe ratio, 5 years | 0.60 | 712 of 1,560 (top 46%) |
| Worst decline, past 10 years | −28.4% | 177 of 951 (top 19%) |

### What has beaten XLV on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 69 ETFs worth at least $500 million sit in the green region: each earned more than XLV over the past 5 years with smaller price swings. That is 2% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half XLV's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 27% less than XLV's 15.2%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.60 for XLV.
- Among XLV's popular alternatives, VIG is in the region. VIG earned 10.4% a year against 8.4% a year for XLV, at 14.1% volatility, 7% less than XLV's 15.2%.

### Is there a better investment than XLV?

The table below lists investments that beat XLV over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among XLV's popular alternatives, VIG earned more than XLV with less volatility over the past 5 years: 10.4% a year at 14.1% volatility, against 8.4% a year at 15.2%.
- Looking beyond its popular alternatives, VTV (US large-cap value) and SCHD (US dividend equity) earned more than XLV with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 8.4% a year at 15.2%.
- Few investments have done better on both counts: only 69 of the 3,633 stocks and funds worth at least $500 million earned more than XLV with less volatility over the past 5 years, among them VTV, VIG and SCHD.

The 15 strongest of 69 investments that beat XLV over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with XLV | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| XLV: State Street Health Care Select Sector SPDR ETF (this page) |  | +8.4% | 15.3% | 0.60 | −28.4% | +202% |  |  |
| PJUL: Innovator U.S. Equity Power Buffer ETF | Broad Market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | Multi-Asset | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| BUFR: FT Vest Laddered Buffer ETF | Buffered Equity | +9.9% | 10.5% | 0.96 | −13.7% | — | 0.57 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| DBMF: iMGP DBi Managed Futures Strategy ETF | Alternatives | +9.8% | 12.4% | 0.82 | −20.4% | — | -0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| FTLS: First Trust Long/Short Equity ETF | Broad Market | +10.2% | 10.4% | 0.99 | −20.6% | +158% | 0.61 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| TDVG: T. Rowe Price Dividend Growth ETF | Dividend & Income | +9.6% | 13.8% | 0.73 | −19.2% | — | 0.76 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| SIXH: ETC 6 Meridian Hedged Equity Index Option ETF | Broad Market | +10.2% | 10.2% | 1.00 | −11.7% | — | 0.68 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.55 | Higher return, lower volatility |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.76 | Higher return, lower volatility |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | International Equity | +13.1% | 13.8% | 0.96 | −32.5% | +206% | 0.64 | Higher return, lower volatility |
| [VYM](https://easycompare.io/research/vym): Vanguard High Dividend Yield ETF | US Dividend Equity | +11.3% | 13.8% | 0.85 | −35.2% | +208% | 0.71 | Higher return, lower volatility |
| DIVO: Amplify CWP Enhanced Dividend Income ETF | Equity Income | +11.1% | 11.9% | 0.95 | −30.0% | — | 0.74 | Higher return, lower volatility |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.69 | Higher return, lower volatility |
| EMLP: First Trust North American Energy Infrastructure Fund | Energy Infrastructure | +14.9% | 14.5% | 1.04 | −43.6% | +150% | 0.51 | Higher return, lower volatility |
| HDV: iShares Core High Dividend ETF | US Dividend Equity | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.70 | Higher return, lower volatility |

## XLV against its popular alternatives

The investments people most often weigh against XLV, compared period by period and year by year.

### How do XLV's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only VIG was both more rewarding and calmer than XLV over the past 5 years, earning a higher annual return with lower volatility.
- 13 of the 20 popular alternatives earned less than XLV over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, XLV returned 8.3% a year, less than the S&P 500's 12.7%, with lower volatility (15.2% against 17.1%).

### Has XLV consistently beaten its popular alternatives?

This section compares XLV with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- None of the 22 popular alternatives outperformed XLV in at least 3 of 5 short-term and 2 of 3 long-term timeframes. The closest was XLK.
- SPY outperformed XLV over all three long-term periods but in none of the five short-term ones, so XLV has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of XLV | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| XLV: State Street Health Care Select Sector SPDR ETF (this page) | +26.3% | +47.6% | +49.3% | +202% |  |  | 0.60 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | +29.3% | +131% | +143% | +767% | 2/5 short-term, 3/3 long-term |  | 0.82 |
| [SPY](https://easycompare.io/research/spy): State Street SPDR S&P 500 ETF | +15.8% | +89.3% | +81.7% | +321% | 0/5 short-term, 3/3 long-term |  | 0.79 |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | +13.7% | +67.0% | +64.0% | +258% | 0/5 short-term, 3/3 long-term |  | 0.78 |
| PTH: Invesco Dorsey Wright Healthcare Momentum ETF | +27.7% | +101% | +15.3% | +271% | 2/5 short-term, 2/3 long-term |  | 0.24 |
| IHE: iShares U.S. Pharmaceuticals ETF | +40.4% | +86.5% | +81.2% | +151% | 2/5 short-term, 2/3 long-term |  | 0.80 |
| PJP: Invesco Pharmaceuticals ETF | +34.5% | +84.7% | +69.9% | +135% | 2/5 short-term, 2/3 long-term |  | 0.72 |
| PPH: VanEck Pharmaceutical ETF | +28.5% | +58.7% | +72.8% | +153% | 1/5 short-term, 2/3 long-term |  | 0.78 |
| RSPH: Invesco S&P 500 Equal Weight Health Care ETF | +29.8% | +51.4% | +34.3% | +177% | 4/5 short-term, 1/3 long-term |  | 0.44 |
| BBH: VanEck Biotech ETF | +39.5% | +68.8% | +29.9% | +142% | 4/5 short-term, 1/3 long-term |  | 0.35 |
| XHS: State Street SPDR S&P Health Care Services ETF | +36.1% | +76.7% | +36.5% | +173% | 3/5 short-term, 1/3 long-term |  | 0.40 |
| XBI: State Street SPDR S&P Biotech ETF | +39.7% | +130% | +25.1% | +159% | 2/5 short-term, 1/3 long-term |  | 0.30 |
| IBB: iShares Biotechnology ETF | +34.8% | +81.0% | +35.2% | +140% | 2/5 short-term, 1/3 long-term |  | 0.38 |
| XPH: State Street SPDR S&P Pharmaceuticals ETF | +31.2% | +80.7% | +41.8% | +65.8% | 1/5 short-term, 1/3 long-term |  | 0.44 |
| VHT: Vanguard Health Care ETF | +25.2% | +50.4% | +42.0% | +200% | 0/5 short-term, 1/3 long-term |  | 0.53 |
| FHLC: Fidelity MSCI Health Care Index ETF | +25.5% | +50.5% | +42.1% | +199% | 0/5 short-term, 1/3 long-term |  | 0.53 |
| IHF: iShares U.S. Healthcare Providers ETF | +19.0% | +23.8% | +16.4% | +171% | 3/5 short-term, 0/3 long-term |  | 0.26 |
| FXH: First Trust Health Care AlphaDEX Fund | +20.1% | +46.3% | +16.0% | +134% | 1/5 short-term, 0/3 long-term |  | 0.26 |
| XLP: State Street Consumer Staples Select Sector SPDR ETF | +13.2% | +41.5% | +41.4% | +121% | 1/5 short-term, 0/3 long-term |  | 0.57 |
| IYH: iShares U.S. Healthcare ETF | +25.2% | +46.1% | +41.8% | +193% | 0/5 short-term, 0/3 long-term |  | 0.53 |
| IXJ: iShares Global Healthcare ETF | +19.7% | +40.3% | +36.5% | +158% | 0/5 short-term, 0/3 long-term |  | 0.50 |
| RXI: iShares Global Consumer Discretionary ETF | −4.9% | +45.4% | +17.8% | +147% | 0/5 short-term, 0/3 long-term |  | 0.26 |
| IHI: iShares U.S. Medical Devices ETF | −10.1% | +19.3% | −13.9% | +138% | 0/5 short-term, 0/3 long-term |  | -0.05 |

### How did XLV do year by year?

This table shows each investment's total return in every full calendar year since 1999, along with where XLV ranked among its popular alternatives each year.

- XLV finished ahead of the S&P 500 in 12 of its 27 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, XBI came out ahead of XLV most often, in 12 of the 19 years both traded.
- Ranked against its popular alternatives each year, XLV finished in the top quarter in five of 25 years and in the bottom quarter in four. In 2025, it ranked 13 of 21.

| Year | XLV | SPY |
| --- | --- | --- |
| 2025 | +14.5% | +17.7% |
| 2024 | +2.5% | +24.9% |
| 2023 | +2.1% | +26.2% |
| 2022 | −2.1% | −18.2% |
| 2021 | +26.1% | +28.7% |
| 2020 | +13.3% | +18.3% |
| 2019 | +20.5% | +31.2% |
| 2018 | +6.3% | −4.6% |
| 2017 | +21.8% | +21.7% |
| 2016 | −2.8% | +12.0% |

## Risk and diversification

How XLV has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were XLV's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- Not every decline was the market's doing: XLV fell 17.1% from September 2024 to May 2025, while the S&P 500 rose 5.4%.
- The slowest recovery came after XLV fell 33.3% from January 2000 to September 2001; it did not regain that peak until June 2005, four years later.
- In three of XLV's five worst declines, the S&P 500 held up better over the same dates.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −39.2% | December 10, 2007 | March 9, 2009 | April 26, 2011 | −53.9% | 2008 financial crisis |
| −33.3% | January 10, 2000 | September 20, 2001 | June 17, 2005 | −31.4% | dot-com bust |
| −28.4% | January 22, 2020 | March 23, 2020 | July 15, 2020 | −32.3% | Covid crash |
| −17.3% | May 18, 2011 | August 10, 2011 | January 18, 2012 | −16.0% | 2011 euro debt crisis |
| −17.1% | September 16, 2024 | May 14, 2025 | November 21, 2025 | +5.4% |  |

### How did XLV do in stock market crashes?

This section measures how far XLV, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- XLV fell less than the S&P 500 in seven of the ten crashes it has traded through. The clearest case was the dot-com bust, when XLV fell 29.8% and the S&P 500 fell 47.5%.
- Among its popular alternatives, XLP held up best, falling less than XLV in seven of the ten crashes they both traded through.

| Crash | Dates | XLV fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −29.8% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −39.2% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.4% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −15.8% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −15.9% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −15.4% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −27.9% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −16.1% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.7% | −3.4% |

### How closely does XLV move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Only XLK and VIG had a higher capture ratio (upside capture divided by downside capture) than XLV's 0.94, out of 20 popular alternatives with the same record.
- Over the past 10 years, XLV captured 76% of the S&P 500's gains in rising months and 81% of its losses in falling months, with a beta of 0.66. Its share of the market's losses was slightly larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| XLV: State Street Health Care Select Sector SPDR ETF (this page) | 76.0% | 81.0% | 0.66 |
| [XLK](https://easycompare.io/research/xlk): State Street Technology Select Sector SPDR ETF | 128% | 100% | 1.19 |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | 85.0% | 86.0% | 0.84 |
| PTH: Invesco Dorsey Wright Healthcare Momentum ETF | 99.0% | 108% | 0.89 |
| IHE: iShares U.S. Pharmaceuticals ETF | 70.0% | 81.0% | 0.66 |
| PJP: Invesco Pharmaceuticals ETF | 67.0% | 79.0% | 0.63 |
| PPH: VanEck Pharmaceutical ETF | 69.0% | 80.0% | 0.65 |
| RSPH: Invesco S&P 500 Equal Weight Health Care ETF | 85.0% | 104% | 0.84 |
| BBH: VanEck Biotech ETF | 77.0% | 98.0% | 0.79 |
| XHS: State Street SPDR S&P Health Care Services ETF | 88.0% | 109% | 1.00 |
| XBI: State Street SPDR S&P Biotech ETF | 93.0% | 122% | 1.01 |
| IBB: iShares Biotechnology ETF | 80.0% | 103% | 0.81 |
| XPH: State Street SPDR S&P Pharmaceuticals ETF | 71.0% | 108% | 0.81 |
| VHT: Vanguard Health Care ETF | 78.0% | 84.0% | 0.70 |
| IHF: iShares U.S. Healthcare Providers ETF | 78.0% | 93.0% | 0.80 |
| FXH: First Trust Health Care AlphaDEX Fund | 78.0% | 100% | 0.80 |
| XLP: State Street Consumer Staples Select Sector SPDR ETF | 53.0% | 60.0% | 0.55 |
| IYH: iShares U.S. Healthcare ETF | 76.0% | 82.0% | 0.67 |
| IXJ: iShares Global Healthcare ETF | 71.0% | 81.0% | 0.63 |
| RXI: iShares Global Consumer Discretionary ETF | 91.0% | 121% | 1.06 |
| IHI: iShares U.S. Medical Devices ETF | 82.0% | 108% | 0.84 |

### What diversifies XLV?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in XLV into FJAN would have cut the portfolio's volatility by 13% over the past 5 years and raised its annual return (+7.5% for XLV alone, +8.4% for the mix).
- Among large ETFs, DXJ, FJAN and MLPX have moved largely independently of XLV over the past 5 years, with correlations of 0.48 or lower, and each still earned a positive 5-year return.
- Among large stocks, CAH, CLS and FIX have moved largely independently of XLV over the past 5 years, with correlations of 0.46 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with XLV | 5Y return | Volatility | Sharpe | Rose in XLV's 6 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.40 | +225% | 19.1% | 1.34 | 2 of 6 |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | 0.48 | +69.0% | 10.5% | 1.05 | 0 of 6 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.41 | +135% | 19.7% | 0.97 | 2 of 6 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.27 | +323% | 36.9% | 0.97 | 1 of 6 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.24 | +126% | 18.9% | 0.96 | 2 of 6 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.31 | +177% | 25.5% | 0.93 | 3 of 6 |
| EWT: iShares MSCI Taiwan ETF | 0.25 | +153% | 24.2% | 0.89 | 2 of 6 |
| EUFN: iShares MSCI Europe Financials ETF | 0.49 | +133% | 21.8% | 0.89 | 0 of 6 |

## Common questions

### What was XLV's worst drawdown?

XLV's deepest decline since it began trading in 1998 was 39.2%, from December 2007 to March 2009. It took 25 months from the low to climb back to its old high.

### What were XLV's best and worst years?

Over 27 full calendar years, XLV's best year was 2013, when it returned 41.4%. Its worst was 2008, with a return of -23.3%.

### Is there a better investment than XLV?

Among XLV's popular alternatives, VIG earned more than XLV with less volatility over the past 5 years: 10.4% a year at 14.1% volatility, against 8.4% a year at 15.2%. Looking beyond its popular alternatives, VTV (US large-cap value) and SCHD (US dividend equity) earned more than XLV with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 8.4% a year at 15.2%.

### Is XLV more volatile than the S&P 500?

No. XLV's volatility over the past 5 years was 15.2%, 89% of the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, XLV's return lands within 15.2% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is XLV's Sharpe ratio?

XLV's Sharpe ratio over the past 5 years was 0.60, against 0.79 for the S&P 500, so XLV earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is XLV with the S&P 500?

Over the past 5 years, XLV's monthly returns had a correlation of 0.58 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against XLV instead: the lower it is, the more that option would diversify a XLV holding.

### What are the best alternatives to XLV?

None of the 22 popular alternatives we compared outperformed XLV in at least 3 of 5 short-term and 2 of 3 long-term timeframes, which says more about XLV's strength than about its alternatives.

### Did XLV outperform the S&P 500?

XLV finished ahead of the S&P 500 (SPY) in 12 of 27 full calendar years. In 2025, it returned +14.5%, against +17.7% for the index.

### How did XLV do in stock market crashes?

XLV fell less than the S&P 500 (SPY) in seven of the ten major crashes it has traded through, and further in one. The clearest case was the dot-com bust, when XLV fell 29.8% and the S&P 500 fell 47.5%.

### What diversifies XLV?

These had a low correlation with XLV over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.40), FJAN (correlation 0.48) and MLPX (correlation 0.41); among large stocks, CAH (correlation 0.46), CLS (correlation 0.07) and FIX (correlation 0.22). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/xlv
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against XLV live: https://betterthanspy.com/?b=XLV&utm_source=easycompare&utm_medium=research