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Which Is the Better State Street Healthcare ETF: The Broad XLV or the Biotech XBI?

XBI surged 76% in one year but carries triple the expense ratio and far steeper downside risk. Which fund matches your risk appetite?

Which Is the Better State Street Healthcare ETF: The Broad XLV or the Biotech XBI?

Published August 3, 2026 · Category: Finance

Overview

While State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) offers broad exposure to established healthcare giants at a minimal cost, State Street SPDR S&P Biotech ETF (NYSEMKT:XBI) provides a more volatile, equal-weighted focus on the biotechnology sub-sector.

Choosing between these two funds depends on the desired level of industry concentration and volatility tolerance. The State Street Health Care Select Sector SPDR ETF provides a diversified entry into the healthcare giants of the S&P 500, whereas the smaller State Street SPDR S&P Biotech ETF leans heavily into the high-risk potential of research-focused firms. This comparison analyzes cost, performance, and risk profiles to see which approach fits your portfolio.

Details

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.