ETF · Health

State Street Health Care Select Sector SPDR ETF(XLV)

$153.81
-0.18%
Expense Ratio
$38.6B
Total AUM
Holdings
Inception
Active Share vs VOO
Truly Active
0%20%60%100%
91.3%

AI Look-Through Summary

AI Generated

The portfolio is heavily concentrated in the healthcare sector, with nearly all of its assets allocated to this category. The top holdings are primarily large-cap pharmaceutical and biotechnology companies, which suggests that the fund's investment strategy focuses on established industry leaders. The weighted P/E ratio of 25.0x indicates that the fund's holdings are trading at a premium valuation compared to the broader market.

The dominance of a few large stocks, particularly Lilly (16.3%) and Johnson & Johnson (10.4%), raises concerns about concentration risk. The sector allocation is also notable for its similarity to the overall market, as healthcare companies make up a significant portion of the S&P 500. A favorable macro environment for this portfolio would likely involve continued demand for pharmaceuticals and biotechnology products, while an unfavorable environment could be driven by increased regulatory scrutiny or changes in government policies affecting the industry.

Generated by Qwen-32B from constituent-level data. Not investment advice. Updated: 2026-06-12 07:57:35.506791+00

🔍 Theme Alignment Audit

AI GeneratedPurity: 98/100

The investment theme implied by the name, which targets a specific select sector of healthcare, is executed with near-perfect fidelity in this fund's composition. Every single top holding listed falls squarely within the healthcare industry, ranging from pharmaceutical giants and biotechnology firms to medical device companies and hospital operators. There are no unrelated holdings or diversification into technology or consumer sectors that would dilute the thematic focus, ensuring a strict adherence to the stated investment objective without deviation toward broad market stability through non-sector names.

Sector coherence is exceptionally high given that healthcare constitutes 96.6% of the total portfolio across forty-eight distinct positions, creating a tightly defined exposure profile. While the top-ten concentration sits at nearly sixty percent, driven largely by large-cap leaders like Eli Lilly and Johnson & Johnson, this weighting reflects the natural market capitalization distribution within the industry rather than an artificial reliance on mega-caps to obscure strategy. The fund appears genuinely differentiated from a broad market index due to its exclusion of non-healthcare equities entirely, offering investors pure sector exposure without the need for additional filtering or thematic interpretation beyond the label provided.

AI analysis of holdings alignment vs fund theme. Not investment advice. Updated: 2026-05-22 13:25:15.780181+00

🏢 Sector Analysis

AI Generated

The State Street Health Care Select Sector SPDR ETF exhibits an exceptionally high degree of sector purity, with healthcare holdings comprising 96.6% of the total portfolio across forty-eight constituents. This near-total dedication to a single industry underscores an investment thesis strictly focused on capturing returns from the medical services and pharmaceutical sectors while deliberately excluding exposure to other economic drivers such as technology or consumer discretionary growth. The fund's structure is designed to isolate the performance dynamics specific to healthcare, meaning that its valuation trajectory will be inextricably linked to broader trends within this industry rather than diversified market movements.

Concentration risk remains a defining characteristic of this vehicle, highlighted by the fact that the top ten holdings account for over 60% of assets under management. This heavy weighting is further intensified at the individual stock level, where Eli Lilly alone represents more than fifteen percent and Johnson & Johnson exceeds ten percent. Such a distribution indicates a significant factor tilt toward large-cap stability within the healthcare space, as these five names collectively form nearly half of the entire portfolio value. Consequently, the fund's performance will be disproportionately influenced by the fortunes of these specific mega-caps; any material adverse event affecting one or more of these leaders could exert outsized pressure on overall returns compared to a more broadly diversified peer group.

The dominance of traditional pharmaceutical and healthcare conglomerates suggests that the underlying index methodology prioritizes market capitalization within this sector, resulting in a portfolio heavily weighted toward established industry giants rather than emerging biotech firms or smaller specialized players. This composition reveals an implicit bet on the resilience and revenue generation capabilities of these large entities during various economic cycles. While this approach offers potential stability through brand recognition and diversified product pipelines inherent to these companies, it simultaneously limits exposure to high-growth segments that might be underrepresented due to their relative size compared to the top-tier incumbents held in such significant quantities.

AI-generated sector analysis from constituent-level data. Not investment advice. Updated: 2026-05-23 22:23:26.965088+00

Flow Driver Analysis

2-Step Circle

Which larger ETFs share XLV's holdings — and mechanically drive its price through index rebalancing flows?

Approximately 100% of XLV's weight flows through these larger ETFs

Driver ETFAUMExpenseShared StocksWeight Overlap
SPYState Street SPDR S&P 500 ETF Trust$640B0.09%6199.8%
SPTMSPTM$12B6199.8%
VHTVHT$19B5999.8%
SPLGSPLG$97B5999.4%
VOOVanguard S&P 500 ETF$1.5T0.03%5899.3%

100% of XLV's portfolio by weight is also held by SPY, which commands 17× more assets under management. When SPY receives inflows, it mechanically buys these shared stocks — dragging XLV's NAV along regardless of any thematic or sector catalyst. Combined, the top 5 overlapping ETFs control exposure to 100% ofXLV's weight.

Overlap computed from constituent-level holdings data across 5 ETFs. Price co-movement with driver ETFs is structural, not coincidental. Not investment advice.

ETF Look-Through Dashboard

Peer through the ETF wrapper to see exactly what you own. Every metric is computed from constituent-level data.

28.2x
Weighted P/E
9.54x
Weighted P/B
$351B
Wtd Avg Market Cap

Weighted metrics calculated based on 98% of fund assets with available data.

Herfindahl-Hirschman Concentration Index

01000200030004000600
Well Diversified
Top 5: 46.0%Top 10: 60.9%

Morningstar-Style Box

Value
Blend
Growth
Large
Mid
Small
Large Growth

Sector & Cap Explorer

Healthcare96.9%
Visualization Mode

ETF Fundamental Radar

Total Analysis
100% Weight
Market Cap
Large
Risk Profile
Low Risk

Operational health is mixed, with the bulk of weight in the mid-range (4–6) Piotroski scores.

Piotroski F-Score (Operational Health)

Score 0-9: Measures Profitability, Leverage, and Efficiency

↑ Weight (%)100%80%60%40%20%
2%
0–3 Weak
57%
4–6 Average
41%
7–9 Strong

Computed by rolling up individual stock Piotroski F-Scores, Altman Z-Scores, and Beneish M-Scores weighted by each constituent's allocation.

Dividend Safety True-Up

Deterministic
57%
Wtd FCF Payout Ratio
1.24%
TTM Yield
Safe
Dividend Durability
57% of FCF
0% (retains all cash)50%100% (pays out everything)

The dividend-paying companies inside XLV collectively pay out 57% of their Free Cash Flow to maintain the current yield. This is a sustainable payout level with moderate room for dividend growth. Based on 86% of fund weight in dividend-paying stocks.

FCF Payout Ratio = Dividends Paid / Free Cash Flow, weighted by constituent allocation. Not investment advice.

Earnings vs. Price Decomposition

Proprietary
+14.5%
ETF 1Y Return
+31.8%
Wtd Earnings Growth
-17.3%
Multiple Contraction
Earnings

XLV is up 14.5% over the last 12 months. The underlying weighted earnings growth of its constituents is +31.8%. Despite earnings growth, valuations have contracted by 17.3% — the market is paying less per dollar of earnings than a year ago.

Earnings growth = weighted average YoY EPS growth of all constituents (capped at ±500% to limit outlier distortion). Based on 94% of fund weight with earnings data. Not investment advice.

Value Creation Map

ROIC vs WACC

What percentage of XLV's weight is allocated to companies that create economic value (ROIC > WACC) vs. destroy it?

69% Creators
31% Destroyers
Value Creators (ROIC > WACC)66.7%
Value Destroyers29.6%

Of XLV's analyzed weight, 69% is invested in companies earning more than their cost of capital — genuine value creators. The remaining 31% consists of companies whose ROIC falls below their WACC, effectively destroying shareholder value with every dollar invested.

ROIC-WACC spread for 96% of fund weight with available data. Not investment advice.

Concentration Risk Monitor

HIGH
16.5%
Largest Holding
LLY
34.0%
Top 3 Weight
17
Effective # of Stocks
45%
Top Stock Var. Share
Portfolio weight concentration
LLY
JNJ
ABBV
UNH
Other 45 stocks

LLY at 16.5% contributes an estimated 45% of portfolio variance.XLV holds 50 stocks but behaves like an 17-stock portfolio due to weight concentration in the top holdings.

Effective # of Stocks = 1 / HHI (Herfindahl-Hirschman Index). Variance share approximated as w² / Σw². Not investment advice.

Passive Crowding Score

MODERATE

How much of each constituent's market cap is structurally locked in passive ETFs — a proxy for liquidity fragility during sell-offs.

41/ 100
Wtd Avg Passive Ownership12.4%
Most Crowded HoldingZTS (21.6%)
Least CrowdedDVA (4.8%)
Coverage99% of fund weight
0 — Low255075100 — Extreme

XLV has a Passive Crowding Score of 41/100. On average, 12.4% of the market capitalization of XLV's underlying holdings is structurally locked in passive ETF vehicles. This indicates moderate passive ownership density. Index rebalances and ETF creation/redemption activity can amplify short-term volatility in the underlying holdings.

Passive $ = Σ(ETF AUM × holding weight) across all 36 tracked ETFs. Actual passive ownership is higher (includes mutual funds, pension funds). Not investment advice.

Under the Hood — Top 15 Constituents

Top 10 Concentration60.9%
#TickerCompanyWeightP/EF-Score
1LLY
ELI LILLY + CO
Healthcare
16.52%
40.3x7/9
2JNJ
JOHNSON + JOHNSON
Healthcare
10.32%
27.9x4/9
3ABBV
ABBVIE INC
Healthcare
7.14%
111.1x7/9
4UNH
UNITEDHEALTH GROUP INC
Healthcare
6.60%
30.8x6/9
5MRK
MERCK + CO. INC.
Healthcare
5.38%
33.5x4/9
6AMGN
AMGEN INC
Healthcare
3.42%
24.7x7/9
7TMO
THERMO FISHER SCIENTIFIC INC
Healthcare
3.21%
25.8x4/9
8GILD
GILEAD SCIENCES INC
Healthcare
2.80%
17.1x8/9
9ABT
ABBOTT LABORATORIES
Healthcare
2.80%
24.7x5/9
10PFE
PFIZER INC
Healthcare
2.67%
20.0x5/9
11ISRG
INTUITIVE SURGICAL INC
Healthcare
2.63%
50.0x7/9
12CVS
CVS HEALTH CORP
Healthcare
2.30%
44.7x6/9
13BMY
BRISTOL MYERS SQUIBB CO
Healthcare
2.08%
16.0x9/9
14DHR
DANAHER CORP
Healthcare
2.04%
34.8x4/9
15VRTX
VERTEX PHARMACEUTICALS INC
Healthcare
2.03%
26.4x6/9
The bottom 47 stocks in XLV account for only 28.0% of the total fund weight.

Historical Holdings Snapshots

Browse how XLV’s holdings have changed across SEC filing dates. Showing top holdings per snapshot.

2026-06-14

15 holdings · 72.0% tracked weight
#TickerWeightSharesMarket Value
1LLY16.52%5,609,570
2JNJ10.32%17,059,693
3ABBV7.14%12,511,309
4UNH6.60%6,412,410
5MRK5.38%17,570,269
6AMGN3.42%3,811,946
7TMO3.21%2,659,641
8GILD2.80%8,782,775
9ABT2.80%12,309,457
10PFE2.67%40,249,161
11ISRG2.63%2,513,920
12CVS2.30%9,005,992
13BMY2.08%14,416,231
14DHR2.04%4,453,697
15VRTX2.03%1,798,053

2026-06-13

15 holdings · 72.0% tracked weight
#TickerWeightSharesMarket Value
1LLY16.52%5,609,570
2JNJ10.32%17,059,693
3ABBV7.14%12,511,309
4UNH6.60%6,412,410
5MRK5.38%17,570,269
6AMGN3.42%3,811,946
7TMO3.21%2,659,641
8GILD2.80%8,782,775
9ABT2.80%12,309,457
10PFE2.67%40,249,161
11ISRG2.63%2,513,920
12CVS2.30%9,005,992
13BMY2.08%14,416,231
14DHR2.04%4,453,697
15VRTX2.03%1,798,053

2026-06-12

15 holdings · 71.7% tracked weight
#TickerWeightSharesMarket Value
1LLY16.30%5,598,580
2JNJ10.41%17,026,273
3ABBV7.20%12,486,799
4UNH6.68%6,399,850
5MRK5.35%17,535,849
6AMGN3.29%3,804,476
7TMO3.28%2,654,431
8ABT2.81%12,285,337
9GILD2.73%8,765,565
10ISRG2.65%2,508,990
11PFE2.64%40,170,311
12CVS2.26%8,988,352
13DHR2.09%4,444,967
14BMY2.05%14,387,991
15VRTX2.00%1,794,533

2026-05-24

15 holdings · 71.4% tracked weight
#TickerWeightSharesMarket Value
1LLY15.40%5,621,624
2JNJ10.42%17,096,427
3ABBV7.07%12,538,298
4UNH6.47%6,426,253
5MRK5.37%17,608,133
6AMGN3.39%3,820,136
7TMO3.15%2,665,378
8GILD3.02%8,801,606
9ISRG2.91%2,519,354
10ABT2.85%12,335,945
11PFE2.75%40,335,724
12BMY2.26%14,447,261
13CVS2.22%9,025,391
14VRTX2.06%1,801,917
15DHR2.04%4,463,311

2026-05-23

15 holdings · 71.4% tracked weight
#TickerWeightSharesMarket Value
1LLY15.40%5,621,624
2JNJ10.42%17,096,427
3ABBV7.07%12,538,298
4UNH6.47%6,426,253
5MRK5.37%17,608,133
6AMGN3.39%3,820,136
7TMO3.15%2,665,378
8GILD3.02%8,801,606
9ISRG2.91%2,519,354
10ABT2.85%12,335,945
11PFE2.75%40,335,724
12BMY2.26%14,447,261
13CVS2.22%9,025,391
14VRTX2.06%1,801,917
15DHR2.04%4,463,311

2026-05-22

15 holdings · 71.2% tracked weight
#TickerWeightSharesMarket Value
1LLY15.16%5,646,878
2JNJ10.38%17,173,224
3ABBV7.05%12,594,625
4UNH6.52%6,455,118
5MRK5.27%17,687,230
6AMGN3.35%3,837,294
7TMO3.19%2,677,361
8GILD3.05%8,841,143
9ISRG2.99%2,530,670
10ABT2.89%12,391,375
11PFE2.75%40,516,941
12BMY2.24%14,512,167
13CVS2.23%9,065,940
14SYK2.08%2,454,375
15VRTX2.05%1,810,013

Source: SEC filings and fund provider disclosures. Shows last 6 snapshot dates, top 15 holdings per date by weight.

Risk Profile

17.2%
Annual Volatility
0.67
Sharpe (1Y)
-12.5%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Computed from 1,200+ trading days with 5% risk-free rate.

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this ETF's returns.

0.49
Market β
-0.010
Size (SMB)
Neutral
+0.013
Value (HML)
Neutral
-0.186
Profit (RMW)
Weak
+0.763
Invest (CMA)
Conservative
Alpha (annual): -4.03%
R²: 40.7%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Price Chart with Moving Averages

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What Drove XLV Today?

Daily return attribution — which holdings contributed most (and least) to the fund's move.

Fund move:-0.18%(2026-06-12)

Top Contributors

+0.110%
+0.094%
+0.048%

Top Detractors

-0.046%
-0.076%
-0.398%

Attribution = holding weight × stock daily return. Only the top contributors and detractors are shown.

Technical Setup

AI Generated

XLV's current price is trading below its 50-day simple moving average but above the 200-day, suggesting a recent downturn in short-term momentum. With an RSI of 37.1, indicating it’s near oversold territory, this could imply that the security may be due for some relief or recovery from current levels if past patterns hold true.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the ETF's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Yield & Income

1.24%
TTM Yield
30-Day SEC Yield
5Y Div CAGR

Sector Drift Over Time

How XLV’s sector allocation has shifted across snapshots. Use the slider to travel through time.

2026-06-1460 snapshots
Healthcare96.9%
Other3.1%
Change since 2026-03-26
Other
+0.3%
Healthcare
-0.3%
2026-03-262026-06-14

Active Conviction Tracker

Shares bought and sold between the latest two data snapshots — reveals what the fund manager is actually doing.

No position changes detected between snapshots.

Explore More

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-12.

SecuritiesDB is for informational purposes only. Not investment advice.