PINK vs. XLV: How Do These Two Health Care ETFs Match Up?

Jake Lerch, The Motley Fool

Sun, July 26, 2026 astatine 5:00 PM CDT 5 min read

Investors choosing betwixt Simplify Health Care ETF (NYSEMKT:PINK) and State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) whitethorn measurement the SPDR fund's importantly little costs against the Simplify fund's progressive absorption and charitable mission.

Both funds supply targeted vulnerability to the healthcare sector, yet they run with fundamentally chiseled philosophies. One offers a low-cost, passive introduction into the largest bluish spot companies successful the S&P 500 healthcare index, portion the different employs progressive absorption and a unsocial charitable mandate to prosecute superior appreciation done innovation.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from monthly returns implicit the disposable money past (up to 5 years). The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The disbursal quality betwixt these 2 products is stark. The State Street fund's 0.08% disbursal ratio makes it importantly much affordable for semipermanent holders than the Simplify fund's 0.51% fee. Furthermore, the State Street money offers a notably higher dividend yield, which whitethorn entreaty to investors seeking accordant currency flow.

Performance & hazard examination

What's wrong

State Street Health Care Select Sector SPDR ETF (NYSEMKT:XLV) focuses connected large-cap stableness by tracking the Health Care Select Sector Index, providing vulnerability to 60 holdings crossed pharmaceuticals and biotechnology. Its assemblage constitution is highly concentrated, with astir 99.00% of the portfolio dedicated to healthcare firms. Its largest positions see Eli Lilly (NYSE:LLY) astatine 16.11%, Johnson & Johnson (NYSE:JNJ) astatine 10.72%, and AbbVie (NYSE:ABBV) astatine 7.79%. It was launched successful 1998. State Street Health Care Select Sector SPDR ETF has paid $2.53 per stock implicit the trailing 12 months, which, astatine its caller ~$161.4 stock price, yields 1.60%.

Simplify Health Care ETF (NYSEMKT:PINK) is an actively managed money overseen by Michael Taylor, who selects 58 holdings with a absorption connected high-growth healthcare sub-sectors specified arsenic biotechnology, aesculapian technology, and cistron therapy. While 89.00% of the money is dedicated to healthcare, it besides maintains tiny positions successful industrials and user cyclical stocks. Its apical holdings see Thermo Fisher Scientific (NYSE:TMO) astatine 6.98%, Novo Nordisk (NYSE:NVO) astatine 6.87%, and United Therapeutics (NASDAQ:UTHR) astatine 6.79%. It was launched successful 2021. The money distinguishes itself with a currency hedge and a unsocial pro bono operation that donates each nett profits to the Susan G. Komen foundation; arsenic of Sept. 1, 2025, these contributions totaled $350,000. Simplify Health Care ETF has paid $0.25 per stock implicit the trailing 12 months, which, astatine its caller ~$38.7 stock price, yields 0.60%.