Broad healthcare ETF outperforms focused biotech fund over five years
Health · 2 July 2026
Written by AI from multiple news reports
A new financial analysis published in mid-2026 compared two popular healthcare investment funds over a five-year period. The SPDR Health Care ETF, known as XLV, turned a $1,000 investment into $1,354 by June 2026, while the iShares Biotechnology ETF, IBB, produced $1,167 over the same period.
XLV is a broader fund, holding shares in 59 large healthcare companies including Eli Lilly and Johnson & Johnson. IBB focuses only on biotechnology, a narrower area with stronger short-term growth but bigger losses during downturns. IBB fell nearly 40% at its worst point over five years, compared to just 17% for XLV.
Running costs also differ. XLV charges investors 0.08% annually, while IBB charges 0.44%. XLV also pays a 1.6% dividend, against IBB's 0.2%.