XLK vs XLV: Head-to-Head Comparison
XLK vs XLV: Technology Select Sector SPDR Fund has an expense ratio of 0.09% while Health Care Select Sector SPDR Fund charges 0.09%. XLK holds 65 securities vs XLV's 64. 5-year returns: 21.80% vs 9.80%.
Last updated: April 2026
Sector
Quick Verdict
XLV edges out XLK with a stronger Beginner Suitability Score (9 vs 8). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | XLK | XLV |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| AUM | $65.0B | $40.0B |
| Dividend Yield | 0.70% | 1.50% |
| Holdings | 65 | 64 |
| 1-Year Return | 33.20% | 12.50% |
| 5-Year Return (Ann.) | 21.80% | 9.80% |
| 10-Year Return (Ann.) | 20.20% | 10.50% |
| Beta | 1.20 | 0.72 |
| P/E Ratio | 33.2 | 20.5 |
XLK 5-year annualized return is 21.80% compared to XLV's 9.80%. Over 10 years, XLK returned 20.20% vs XLV's 10.50%.
View data table
| Period | XLK Return | XLV Return |
|---|---|---|
| YTD | 3.60% | 1.90% |
| 1 Year | 33.20% | 12.50% |
| 3 Year | 14.80% | 6.80% |
| 5 Year | 21.80% | 9.80% |
| 10 Year | 20.20% | 10.50% |
Key Differences Between XLK and XLV
XLK (Technology Select Sector SPDR Fund) is a technology sector fund managed by State Street Global Advisors. XLK provides exposure to the technology companies in the S&P 500 index, making it one of the most popular and liquid tech sector ETFs available. It is more concentrated than VGT, holding only S&P 500 tech names rather than a broader universe. Beginners should understand that XLK's lower holding count means it is more heavily weighted toward the very largest tech stocks like Apple and Microsoft.
XLV (Health Care Select Sector SPDR Fund) is a health care sector fund managed by State Street Global Advisors. XLV provides targeted exposure to the health care sector of the S&P 500, including pharmaceutical giants, biotech firms, medical device makers, and health insurance companies. Healthcare is considered a defensive sector because people need medical care regardless of the economy. Beginners use XLV to add healthcare exposure, which can provide stability during market downturns while benefiting from long-term demographic trends like an aging population.
The most notable differences are in fees (0.09% vs 0.09%), number of holdings (65 vs 64), and 5-year returns (21.80% vs 9.80%).
XLK vs XLV multi-factor comparison: XLK has a 0.09% expense ratio, 21.80% 5-year return, 65 holdings, 1.20 beta, and 0.70% yield. XLV has 0.09% expense ratio, 9.80% 5-year return, 64 holdings, 0.72 beta, and 1.50% yield.
View data table
| Metric | XLK | XLV |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| 5-Year Return | 21.80% | 9.80% |
| Holdings | 65 | 64 |
| Beta | 1.20 | 0.72 |
| Dividend Yield | 0.70% | 1.50% |
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Holdings Overlap Analysis
0%
Holdings Overlap
XLK and XLV share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
XLK and XLV share 0% of their top holdings (low overlap). XLK has 65 total holdings and XLV has 64.
View data table
| Metric | XLK | XLV |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 65 | 64 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
XLK
Fee cost: $771
XLV
Fee cost: $771
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, XLK (0.09% fee) grows to $45,839 while XLV (0.09% fee) grows to $45,839. The fee difference costs $0.
View data table
| Year | XLK Value | XLV Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,632 | $14,632 |
| 10 | $21,410 | $21,410 |
| 15 | $31,327 | $31,327 |
| 20 | $45,839 | $45,839 |
Which One Should a Beginner Choose?
Choose XLK if: You want active traders who need a liquid, options-friendly tech sector vehicle, investors who prefer s&p 500 quality screens applied to their tech allocation, those looking for a focused large-cap tech fund with low fees and high liquidity. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Choose XLV if: You want defensive-minded investors who want lower-volatility sector exposure during uncertain markets, long-term investors who believe healthcare will benefit from aging global demographics, portfolio builders looking to overweight a sector with consistent earnings growth. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Can You Own Both XLK and XLV?
Absolutely! With only 0% overlap, XLK and XLV complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy XLK or XLV?▾
XLV edges out XLK with a stronger Beginner Suitability Score (9 vs 8). It offers better overall characteristics for new investors. However, both are solid options. XLK is best for investors who want active traders who need a liquid, options-friendly tech sector vehicle, while XLV is better suited for defensive-minded investors who want lower-volatility sector exposure during uncertain markets.
What is the difference between XLK and XLV?▾
XLK (Technology Select Sector SPDR Fund) tracks technology sector investments with 65 holdings and a 0.09% expense ratio. XLV (Health Care Select Sector SPDR Fund) focuses on health care sector with 64 holdings at 0.09%. Their top holdings overlap by 0%.
Can I own both XLK and XLV?▾
Yes! With only 0% holdings overlap, XLK and XLV complement each other well. Owning both gives you broader diversification.