About XLV ETF
Overview:
The State Street Health Care ETF (XLV) is the largest and oldest fund in the segment and invests in firms whose business range from healthcare equipment and services to pharmaceuticals and is managed by State Street Global Advisors that has a total AUM of $2.73T.
XLV is an exchange-traded fund incorporated in the USA in Dec 1998. It seeks to provide precise exposure to companies in the pharmaceuticals, healthcare equipment and supplies, health care providers and services, biotechnology, life sciences tools and services, and healthcare technology industries.
XLV dominates the US health care segment. XLV is the oldest and largest fund in the segment.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
Investment Strategy:
The ETF tracks the performance of the Health Care Sector Index.
Sector:
XLV has invested 100% of its assets in Health care.
Geography:
XLV has invested 98% of its assets in the U.S. and only 2% in the U.K.
Recommended for:
Growth
The fund tracks its index well, so the costs are roughly in line with the headline fee. Since XLV is both cap-weighted and chooses stocks only from the S&P 500, it is tilted heavily toward large cap.
According to ETFdb.com, "This ETF is one of the most popular options for gaining exposure to the U.S. health care sector, and as such might be an attractive option for investors looking to tilt exposure towards lower risk industries."
Additional Information:
1. Fund Factsheet
2. XLV: Health Care Select Sector SPDR ETF
3. 4 ETFs To Play A Booming Healthcare Sector
4. Healthcare ETFs Look to Top Tech
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. XLV's trading volume dwarfs its closest competitors making it's liquidity unparalleled in the segment and is relatively cheap amongst peers with a low tracking error, thus making the cut.The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
