XLV - ETF AI Analysis
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Health Care Select Sector SPDR Fund (XLV)
XLV, the Health Care Select Sector SPDR Fund, earns a solid overall rating thanks to large positions in strong, diversified healthcare leaders like Johnson & Johnson and Merck, which show robust financial performance, positive earnings outlooks, and attractive long-term growth prospects. Other major holdings such as Eli Lilly, UnitedHealth, and Amgen also support the fund’s quality, though issues like high leverage, cash flow challenges, and pockets of overvaluation in some stocks slightly temper the picture. The main risk factor is the fund’s concentration in the healthcare sector, meaning regulatory changes, reimbursement pressures, or challenges in specific product segments could affect many of its holdings at once.
XLV vs. SPDR S&P 500 ETF (SPY)
- AUM
- 49.28B
- Region
- North America
- Expense Ratio
- 0.08%
- Beta
- 0.38
- Issuer
- SPDR
- Inception Date
- Dec 16, 1998
- Dividend Yield
- 1.39%
- Asset Class
- Equity
- Index Tracked
- S&P Health Care Select Sector
XLV Summary
XLV is an exchange-traded fund that focuses on the U.S. healthcare sector by tracking the S&P Health Care Select Sector Index. It owns many large healthcare companies, including well-known names like Johnson & Johnson and Pfizer, as well as drug makers, medical device firms, and health insurance providers. Someone might invest in XLV to get broad, diversified exposure to healthcare, a sector that can offer long-term growth and tends to be more stable because people need medical care in all economies. A key risk is that XLV can still go up and down with the stock market and is heavily concentrated in healthcare companies.
How much will it cost me?
This ETF has an expense ratio of 0.08%, which means you’ll pay about $0.80 per year for every $1,000 invested. That’s lower than the average ETF because XLV is a passively managed fund that simply tracks a healthcare sector index instead of paying managers to pick individual stocks.
What would affect this ETF?
XLV could benefit from an aging population, ongoing medical innovation, and steady demand for healthcare services in the U.S., which may support growth for major holdings like Eli Lilly, Johnson & Johnson, and UnitedHealth. On the other hand, changes in government healthcare policy, drug pricing pressures, and broader market shifts such as rising interest rates or economic slowdowns could weigh on the fund’s performance, especially given its heavy concentration in large U.S. healthcare companies.
XLV Top 10 Holdings
XLV is powered by a handful of heavyweight drugmakers, with Eli Lilly, Johnson & Johnson, and AbbVie doing most of the heavy lifting as their shares keep rising on strong earnings and deep pipelines. UnitedHealth adds a steady, if recently mixed, boost from the managed-care side, while Merck has been a bit choppy, losing some steam in the near term despite a solid longer-term trend. Abbott is lagging and acts as a small drag. Overall, this is a U.S.-centric, Big Pharma–dominated fund, leaning hard into large-cap healthcare stability and innovation.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 LLY | Eli Lilly & Co | 16.86% | $8.27B | $1.33T | 57.20% | 72Outperform |
 JNJ | Johnson & Johnson | 9.74% | $4.78B | $651.32B | 42.90% | 78Outperform |
 ABBV | AbbVie | 7.62% | $3.74B | $510.41B | 34.93% | 66Neutral |
 MRK | Merck & Company | 5.47% | $2.68B | $366.03B | 75.38% | 80Outperform |
 UNH | UnitedHealth | 5.37% | $2.63B | $359.43B | 21.17% | 72Outperform |
 TMO | Thermo Fisher | 3.77% | $1.85B | $252.93B | 23.63% | 72Outperform |
 AMGN | Amgen | 3.76% | $1.84B | $251.64B | 55.67% | 77Outperform |
 GILD | Gilead Sciences | 3.15% | $1.55B | $211.27B | 37.21% | 78Outperform |
 ABT | Abbott Laboratories | 2.85% | $1.40B | $190.62B | -11.66% | 73Outperform |
 PFE | Pfizer | 2.61% | $1.28B | $174.81B | 21.65% | 74Outperform |
XLV Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLV, the sentiment is Positive. The current price of 184.02 is above the 20-day moving average (MA) of 177.40, above the 50-day MA of 172.37, and above the 200-day MA of 157.97, indicating a bullish trend. The MACD of 3.74 indicates Negative momentum. The RSI at 69.55 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLV.
XLV Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| XLV | $184.02 | $197.00(7.05% Upside) | $49.28B | 0.08% | 73Outperform |
 VGT | $115.28 | $158.14(37.18% Upside) | $141.25B | 0.09% | 74Outperform |
 XLK | $176.51 | $240.63(36.32% Upside) | $115.48B | 0.08% | 75Outperform |
 VHT | $340.80 | $382.94(12.36% Upside) | $20.79B | 0.09% | 71Outperform |
 IBB | $215.47 | $267.98(24.37% Upside) | $11.16B | 0.44% | 67Neutral |
 XBI | $154.97 | $250.20(61.45% Upside) | $10.36B | 0.35% | 58Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| XLV | Health Care Select Sector SPDR Fund | 184.02 | 40.48 | 28.20% | |
| VGT | Vanguard Information Technology ETF | 115.28 | 20.40 | 21.50% | |
| XLK | Technology Select Sector SPDR Fund | 176.51 | 32.67 | 22.71% | |
| VHT | Vanguard Health Care ETF | 340.80 | 72.90 | 27.21% | |
| IBB | iShares Biotechnology ETF | 215.47 | 57.36 | 36.28% | |
| XBI | SPDR S&P BIOTECH ETF | 154.97 | 46.15 | 42.41% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.