XLP vs XLV: Head-to-Head Comparison
XLP vs XLV: Consumer Staples Select Sector SPDR Fund has an expense ratio of 0.09% while Health Care Select Sector SPDR Fund charges 0.09%. XLP holds 38 securities vs XLV's 64. 5-year returns: 7.20% vs 9.80%.
Last updated: April 2026
Sector
Quick Verdict
XLV edges out XLP with a stronger Beginner Suitability Score (9 vs 8.5). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | XLP | XLV |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| AUM | $17.0B | $40.0B |
| Dividend Yield | 2.50% | 1.50% |
| Holdings | 38 | 64 |
| 1-Year Return | 11.20% | 12.50% |
| 5-Year Return (Ann.) | 7.20% | 9.80% |
| 10-Year Return (Ann.) | 8.20% | 10.50% |
| Beta | 0.58 | 0.72 |
| P/E Ratio | 24.2 | 20.5 |
XLP 5-year annualized return is 7.20% compared to XLV's 9.80%. Over 10 years, XLP returned 8.20% vs XLV's 10.50%.
View data table
| Period | XLP Return | XLV Return |
|---|---|---|
| YTD | 1.60% | 1.90% |
| 1 Year | 11.20% | 12.50% |
| 3 Year | 5.50% | 6.80% |
| 5 Year | 7.20% | 9.80% |
| 10 Year | 8.20% | 10.50% |
Key Differences Between XLP and XLV
XLP (Consumer Staples Select Sector SPDR Fund) is a consumer staples sector fund managed by State Street Global Advisors. XLP holds the consumer staples companies from the S&P 500, which sell essential everyday products like food, beverages, household goods, and personal care items. These companies maintain steady sales even during recessions because people always need basic necessities. Beginners value XLP as a defensive holding because it tends to hold up much better than the broader market during economic downturns while paying consistent dividends.
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 (38 vs 64), and 5-year returns (7.20% vs 9.80%).
XLP vs XLV multi-factor comparison: XLP has a 0.09% expense ratio, 7.20% 5-year return, 38 holdings, 0.58 beta, and 2.50% 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 | XLP | XLV |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| 5-Year Return | 7.20% | 9.80% |
| Holdings | 38 | 64 |
| Beta | 0.58 | 0.72 |
| Dividend Yield | 2.50% | 1.50% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
0%
Holdings Overlap
XLP and XLV share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
XLP and XLV share 0% of their top holdings (low overlap). XLP has 38 total holdings and XLV has 64.
View data table
| Metric | XLP | XLV |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 38 | 64 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
XLP
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, XLP (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 | XLP 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 XLP if: You want risk-averse investors who want equity exposure with less downside during market corrections, income investors who value the consistent dividend payments from consumer staples companies, those looking to add a defensive tilt to their portfolio during late-cycle economic conditions. 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 XLP and XLV?
Absolutely! With only 0% overlap, XLP 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 XLP or XLV?▾
XLV edges out XLP with a stronger Beginner Suitability Score (9 vs 8.5). It offers better overall characteristics for new investors. However, both are solid options. XLP is best for investors who want risk-averse investors who want equity exposure with less downside during market corrections, while XLV is better suited for defensive-minded investors who want lower-volatility sector exposure during uncertain markets.
What is the difference between XLP and XLV?▾
XLP (Consumer Staples Select Sector SPDR Fund) tracks consumer staples sector investments with 38 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 XLP and XLV?▾
Yes! With only 0% holdings overlap, XLP and XLV complement each other well. Owning both gives you broader diversification.