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ETF Comparison

IHI vs XLV: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares U.S. Medical Devices ETF and State Street Health Care Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated August 13, 2026

Best for

  • IHIInvestors who want broad equity exposure.
  • XLVInvestors who want higher current income (1.56% vs 0.53% for IHI).

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricIHIXLV
Full nameiShares U.S. Medical Devices ETFState Street Health Care Select Sector SPDR ETF
IssueriSharesState Street
Last Close$56.08 as of August 13, 2026$168.44 as of August 13, 2026
Distribution yield0.53%1.56%
Distribution Safety Score™ 90100
Expense ratio0.40%0.09%
AUM$3.38B$41.9B
Distribution frequencyQuarterlyQuarterly
Underlying index—Health Care Select Sector Index
Objective—Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date05/01/200612/16/1998
Beta0.810.51
Last dividend$0.0750$0.6560
Ex-dividend date06/15/202606/22/2026

Bottom lineChoose IHI if you want broad equity exposure. Choose XLV if you want higher current income (1.56% vs 0.53% for IHI).

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iShares
ETFs469
Total AUM$4661B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IHI.

See all iShares ETFs
State Street
ETFs180
Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLV.

See all State Street ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

IHI has lagged XLV over the trailing twelve months, posting a -7.79% total return against 31.54%. The lead holds up over 10 years too: XLV has compounded at 10.26% a year, against 9.18% for IHI. XLV has been the steadier holding, though — annualized volatility of 14.5% against 18.2% for IHI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince May 2006Volatility Sharpe Sortino Max drawdown
IHI-9.18%-7.79%2.13%-1.71%9.18%10.31%18.2%-0.13-0.18-26.6%
XLV9.24%31.54%9.20%6.74%10.26%10.63%14.5%0.300.43-17.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2006” measures every fund from May 5, 2006 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

IHI (iShares U.S. Medical Devices ETF) and XLV (State Street Health Care Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLV offers the higher yield at 1.56% vs 0.53% for IHI. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLV is cheaper with an expense ratio of 0.09% compared to 0.40%.

XLV is the larger fund by assets ($41.9B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, IHI would generate roughly $4.42/month, while XLV would produce $13.00/month, at current distribution rates. Both pay quarterly distributions.

IHI yield0.53%
XLV yield1.56%
Monthly diff on $10K$8.58

Cost & efficiency

Over 10 years on $10,000, IHI would cost approximately $400 in fees vs $90 for XLV (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

IHI ER0.40%
XLV ER0.09%

Strategy & risk

IHI is an ETF, while XLV tracks Health Care Select Sector Index with an index approach. Beta is 0.81 for IHI and 0.51 for XLV, indicating XLV is less volatile relative to the market.

IHI beta0.81
XLV beta0.51

Fund details

IHI is managed by iShares (launched 05/01/2006) with $3.38B in assets. XLV is managed by State Street (launched 12/16/1998) with $41.9B in assets.

IHI AUM$3.38B
XLV AUM$41.9B
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Frequently asked questions

What is the current distribution yield for IHI and XLV?

IHI currently distributes 0.53% and XLV 1.56%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IHI or XLV better for dividend income?

It depends on your goals. XLV currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IHI and XLV?

IHI (iShares U.S. Medical Devices ETF) is an ETF, while XLV (State Street Health Care Select Sector SPDR ETF) tracks Health Care Select Sector Index with an index approach. They are issued by iShares and State Street respectively.

Can I hold both IHI and XLV?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IHI or XLV safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLV scores 100, IHI scores 90, so XLV's payout currently looks the more resilient of the two. XLV has also shown lower price volatility (beta 0.51 vs 0.81 for IHI). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IHI or XLV?

IHI has an expense ratio of 0.40% while XLV charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IHI vs XLV generate?

At current rates, $10,000 in IHI would generate roughly $4.42 per month ($53.00 annually). The same in XLV would produce about $13.00 per month ($156.00 annually).

Which has performed better historically, IHI or XLV?

IHI has lagged XLV over the trailing twelve months, posting a -7.79% total return against 31.54%. The lead holds up over 10 years too: XLV has compounded at 10.26% a year, against 9.18% for IHI. XLV has been the steadier holding, though — annualized volatility of 14.5% against 18.2% for IHI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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IHI vs XLV — at a glance

Generated August 8, 2026.

Overview

IHI and XLV are both healthcare equity ETFs, but they track different segments of the sector. IHI focuses specifically on medical devices—the manufacturers of diagnostic tools, surgical instruments, and implantable equipment—while XLV tracks the entire health care Select Sector Index, which includes pharmaceuticals, biotechnology, devices, healthcare services, and healthcare equipment. The result is a meaningful difference in concentration: IHI is a narrower play on one subsector, while XLV is a broad healthcare exposure.

How they differ

The biggest difference is scope. XLV holds the full health care sector (roughly 70 stocks across all healthcare categories); IHI holds only medical device makers (roughly 40 stocks). That narrower focus means IHI carries higher single-sector concentration risk and will behave differently in rallies or downturns that favor devices over pharma or biotech.

Second, yield and fee trade-offs work opposite directions. XLV's distribution rate is 1.58%, more than double IHI's 0.55%, and XLV's expense ratio is just 0.09% versus IHI's 0.40%. XLV also has a much larger asset base at $41.9B compared to IHI's $3.38B, which typically means tighter bid-ask spreads.

Third, volatility and market sensitivity differ markedly. XLV's beta of 0.51 signals that it moves less than the broader market; IHI's beta of 0.82 shows more sensitivity to market swings. Over longer periods, that steadier profile has favored XLV—it's been in operation since December 1998, well before IHI's May 2006 launch.

Who each is best for

IHI: Fits investors who want focused exposure to the medical devices subsector and are willing to accept higher volatility and lower current income in exchange for a narrower, more specialized holding.

XLV: Fits investors seeking broad healthcare sector exposure with lower fees, higher income, and a more defensive equity profile that historically moves less sharply with market cycles.

Key risks to know

  • Subsector concentration in IHI. Medical devices are cyclical and sensitive to procedure volumes, capital spending by hospitals, and reimbursement rates; a downturn in elective procedures or healthcare cost-cutting can hit the entire device sector at once.
  • Pharma and biotech absent in IHI. IHI's exclusion of pharmaceutical and biotech names means it misses regulatory approvals, drug-launch catalysts, and patent-driven momentum that often drive broad healthcare rallies.
  • Lower liquidity in IHI. With $3.38B in AUM versus XLV's $41.9B, IHI has significantly smaller trading volume and wider spreads, which can matter for larger positions.
  • XLV's beta of 0.51 may underperform in strong bull markets. Lower volatility and defensive positioning can lag when growth and higher-beta sectors lead.

Bottom line

If you want laser-focused exposure to medical devices and can tolerate narrower liquidity and higher fees, IHI offers that specialization. If you prefer broad healthcare coverage, lower costs, higher current income, and a more defensive market profile, XLV's scale and lower expense ratio make it the economical choice. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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