What Is XLV? Health Care Select Sector SPDR Fund
Last updated July 2026
Short answer
XLV is the Health Care Select Sector SPDR Fund, a fund that tracks the healthcare sector of the S&P 500 at a 0.08% expense ratio. It holds the large US pharma, biotech, insurer, device, and equipment companies (LLY, UNH, JNJ), so it is a sector bet on healthcare rather than a broad-market core. Versus VOO, XLV strips out everything except healthcare, which makes it more defensive and less tech-driven than the overall market.
XLV is issued by State Street SPDR and tracks Health Care Select Sector. It charges a 0.08% expense ratio, holds approximately ~$38 billion in assets under management, yields about ~1.6%, and launched in December 1998.
What is XLV?
XLV is the Health Care Select Sector SPDR Fund, a fund that tracks the healthcare sector of the S&P 500 at a 0.08% expense ratio. It holds the large US pharma, biotech, insurer, device, and equipment companies (LLY, UNH, JNJ), so it is a sector bet on healthcare rather than a broad-market core. Versus VOO, XLV strips out everything except healthcare, which makes it more defensive and less tech-driven than the overall market.
XLV is issued by State Street SPDR and tracks Health Care Select Sector, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does XLV hold?
XLV is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of XLV | |
|---|---|---|---|---|
| 1 | LLY | Eli Lilly | ~12% | |
| 2 | UNH | UnitedHealth Group | ~8% | |
| 3 | JNJ | Johnson & Johnson | ~7% | |
| 4 | ABBV | AbbVie | ~6% | |
| 5 | MRK | Merck | ~5% | |
| 6 | ABT | Abbott Laboratories | ~4% | |
| 7 | TMO | Thermo Fisher Scientific | ~4% | |
| 8 | ISRG | Intuitive Surgical | ~4% | |
| 9 | AMGN | Amgen | ~3% | |
| 10 | PFE | Pfizer | ~3% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
How do I invest in XLV?
There are three common ways to get XLV exposure. Buy shares (or fractional shares) of XLV directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so XLV sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. XLV trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is XLV a good buy?
Whether XLV is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks Health Care Select Sector, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLV a buy?
The bottom line on XLV
XLV is a low-cost way to express a sector view on US healthcare in one ticker, spanning pharma, insurers, devices, and equipment. It works as a defensive sector tilt sized around a broad core like VOO, not as a diversified holding, and it tends to behave differently from technology-led benchmarks.
More on XLV
Whether XLV is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLV a buy?
XLV yields ~1.6% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XLV dividend: yield and schedule.
New to funds like XLV? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how XLV fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in XLV with AI
Connect the broker you already use and ask Walnut's AI how XLV fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is XLV?
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XLV is the Health Care Select Sector SPDR Fund, a single ticker that holds the healthcare sector of the S&P 500: large US pharmaceutical, biotech, managed-care, medical device, and life-science companies. It is a sector fund, so it tracks healthcare rather than the broad market.
What is XLV's expense ratio?
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0.08% per year (8 basis points) as of early 2026. On a $10,000 investment, that is about $8 per year in fees, low for a sector ETF. Verify the current figure on the State Street site.
What companies are in XLV?
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The healthcare names of the S&P 500, led by Eli Lilly, UnitedHealth, Johnson & Johnson, AbbVie, Merck, Abbott, Thermo Fisher, Intuitive Surgical, Amgen, and Pfizer. The mix spans pharma, insurers, devices, and life-science tools. Weights are approximate, verify on the issuer's site.
XLV vs VOO: what's the difference?
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VOO holds all 11 sectors of the S&P 500. XLV holds only the healthcare sector. XLV is a concentrated sector bet that tends to be more defensive and less technology-driven, while VOO is diversified across the whole index. Walnut is not an investment adviser, so this is not a recommendation.
Is XLV a defensive sector?
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Healthcare is often considered defensive because demand for medical care and drugs is relatively steady through the economic cycle. That can make XLV hold up better than cyclical sectors in downturns, though it carries its own risks from drug pricing policy, patent expirations, and regulation.
Does XLV pay a dividend?
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Yes, quarterly. The trailing yield is approximately 1.6% as of early 2026, drawn from the dividends of large pharma and healthcare companies, many of which are established dividend payers.
What drives XLV?
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XLV is influenced by drug approvals and pipelines, healthcare policy and drug-pricing legislation, managed-care enrollment and costs, and broad demographic demand for healthcare. Policy headlines can move the sector independently of the overall market.
What is XLV's AUM?
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Approximately $38 billion as of early 2026, which makes it one of the largest sector ETFs. The exact figure moves with markets and flows, so verify on the State Street site.
When was XLV created?
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December 1998. XLV is one of the original Select Sector SPDR funds and is the standard vehicle for large-cap US healthcare exposure.
How do I buy XLV?
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XLV trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how a healthcare tilt like XLV fits with your core.
Is XLV a good investment?
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XLV gives a low-cost, relatively defensive bet on US healthcare. Whether it fits depends on your view of the sector, your time horizon, and what else you own. Walnut is not an investment adviser, so this is not a recommendation.
How do I compare XLV to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. XLV's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Guides that feature XLV
XLV is one of the names covered in these guides. Each one puts the fund next to its peers so you can see where it fits rather than judging it alone.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against State Street SPDR's fund page or your broker before investing.