XBI vs XLV: Pure Biotech Against the Whole Healthcare Sector
These are not two versions of the same idea. XBI holds development-stage biotech at equal weight and pays no dividend. XLV holds insurers, device makers and large pharmaceutical companies alongside biotech, at a fifth of the cost.
XBI (SPDR S&P Biotech ETF) and XLV (Health Care Select Sector SPDR Fund) get filed under the same sector heading and behave nothing alike. XLV holds about 63 companies weighted by market capitalisation, and most of that weight sits in large pharmaceutical manufacturers, health insurers, medical device makers and hospital operators. Those are profitable businesses with revenue and dividends, which is why XLV charges 0.09%, records a beta of 0.70 and yields about 1.4%. XBI holds roughly 150 biotech companies at close to equal weight, charges 0.35%, records a beta of 1.10 and yields 0.0%, because development-stage biotech spends cash on research rather than returning it. The practical consequence is that a biotech headline moves XBI and often barely touches XLV, since the companies in the headline may be a small fraction of XLV or absent from it. Equal weighting also cuts the other way: with about 150 positions, no single holding is much more than 0.67% of XBI, so one result rarely moves the fund far on its own even though the fund as a whole swings more.
Both funds trade commission-free at every major brokerage. How the major brokerages compare →
📋 XBI vs XLV: Key Facts Side by Side
| Metric | XBI | XLV |
|---|---|---|
| Fund Name | State Street SPDR S&P Biotech ETF | State Street Health Care Select Sector SPDR ETF |
| Issuer | State Street | State Street |
| Tracks Index | S&P Biotechnology Select Industry | S&P Health Care Select Sector |
| Expense Ratio | 0.35% | 0.09% ✓ |
| Cost per $10K/yr | $35.00 | $9.00 |
| AUM | $9.6B | $41.7B |
| Holdings | 150 | 63 |
| Inception | 2006 | 1998 |
| 1-Year Return | +87.23% | +24.85% |
| 3-Year Return | +29.13% | +11.00% |
| 5-Year Return | +5.67% | +6.90% |
| Dividend Yield | 0.39% | 1.56% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.00% |
Expense ratio, AUM, and returns updated Aug 30, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 XBI vs XLV: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want broader diversification (150 holdings vs 63)
- want the lowest fees: saves ~$26/yr per $10K vs XBI
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ XBI vs XLV: Frequently Asked Questions
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