State Street’s XLV offers a 0.08% expense ratio and $2.51 annual payout, surpassing iShares’ IYH in cost efficiency and yield.
The State Street Health Care Select Sector SPDR ETF (XLV) undercuts the iShares U.S. Healthcare ETF (IYH) with a 0.08% expense ratio, compared to IYH’s 0.38%. XLV also delivers higher income, distributing $2.51 per share over the past 12 months, appealing to yield-focused investors.
Both ETFs track U.S. healthcare stocks, including Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV), but XLV’s narrower focus on S&P 500 constituents creates a more concentrated portfolio. IYH, while broader, carries higher fees that may erode long-term returns.
XLV’s top holdings include LLY at 16.52%, JNJ at 10.15%, and ABBV at 7.15%, reflecting its tilt toward large-cap pharmaceuticals and medical technology firms.