Health Care Select Sector SPDR Fund (XLV) is an exchange-traded fund that seeks to track the performance of the Health Care Select Sector Index, which consists of U.S.-listed companies operating within the healthcare sector. The ETF is managed by State Street Global Advisors and trades under the ticker XLV on NYSE Arca.

Classified as a U.S. sector equity ETF, XLV aims to reflect, before fees and expenses, the performance of the stocks included in its benchmark index. The fund follows a passive management strategy, maintaining a portfolio designed to replicate the composition and weighting of the index without active security selection.

The index tracked by XLV includes companies listed in the United States that operate across various segments of the healthcare industry. Constituents are weighted by free-float-adjusted market capitalization. 

The index undergoes periodic reviews that may result in additions, removals, and rebalancing, which are reflected in the ETF’s holdings.

Diversification and sector exposure

XLV provides focused exposure to the U.S. healthcare sector, covering segments such as:

• Pharmaceutical companies.

• Biotechnology.

• Medical equipment and devices.

• Healthcare services.

• Medical research and development.

Diversification occurs within the sector itself, reflecting its internal segmentation.

Structure and costs

XLV shares are traded on the secondary market. Creation and redemption of shares are carried out by authorized participants, a mechanism designed to help keep the ETF’s market price aligned with its net asset value (NAV).

The fund charges a management fee and does not apply a performance fee. XLV makes periodic income distributions derived primarily from dividends paid by the underlying holdings.

History and evolution of the ETF

The Health Care Select Sector SPDR Fund was launched in 1998 during the expansion of sector-based ETFs in the U.S. market. Over time, XLV has maintained its index replication approach, adjusting its portfolio in line with periodic index reviews.

Between 2020 and 2024, the ETF reflected conditions within the healthcare sector amid global health events, scientific developments, and regulatory changes.

Additional Information

Health Care Select Sector SPDR Fund (United States) is an exchange-traded fund (ETF), with assets under management totaling $45.11 billion.

Over the past 12 months, Health Care Select Sector SPDR Fund recorded a return of 27.03%, with its price trading between $134.13 and $175.68 during the same period.

The ETF is traded under the ticker XLV.