What is the main difference in the investment focus between IXJ and XLV?

IXJ (iShares Global Healthcare ETF) is designed to provide exposure to healthcare companies from multiple countries around the world. In contrast, XLV (Health Care Select Sector SPDR) focuses exclusively on the healthcare sector within the United States. This distinction is crucial for investors, as it represents a choice between a globally diversified portfolio and a concentrated, single-country strategy, affecting how the fund responds to international market movements versus domestic healthcare developments.

How do ETFs like IXJ and XLV distribute dividends to shareholders?

ETFs such as IXJ and XLV typically receive dividends from the underlying companies held within their respective indices. These funds then distribute those earnings to their own shareholders, usually on a quarterly basis. For IXJ, the dividend yield is 1.40%, while XLV offers a 1.51% yield. These yields represent annual income based on the current share price and are subject to change as the fund's holdings and market prices fluctuate over time.

What is the difference in expense ratios between IXJ and XLV?

The expense ratio is the annual fee a fund charges to manage its portfolio. For IXJ (iShares Global Healthcare ETF), the expense ratio is 0.38%. For XLV (Health Care Select Sector SPDR), the expense ratio is lower at 0.08%. Over the long term, this difference of 0.30 percentage points can impact an investor's net returns, making XLV more cost-efficient for its specific US-focused mandate compared to IXJ's global mandate.

How do the top holdings of IXJ and XLV compare?

Despite IXJ targeting global markets and XLV focusing on the US, the top 10 companies held by both funds are identical. Both include major players like Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV). However, XLV holds these same companies with higher concentration; for instance, its weight in LLY is 15.17% compared to IXJ's 10.38%. This indicates that global healthcare indexes often feature high US mega-cap exposure anyway.

How do the net assets of IXJ and XLV differ?

Net assets, often called assets under management (AUM), represent the total market value of the fund's holdings. XLV is significantly larger, with $43.5 billion in net assets, compared to IXJ's $4.3 billion. This difference often implies that XLV may have more trading volume, which can lead to tighter bid-ask spreads for investors buying or selling shares throughout the trading day.

What kind of income might an investor expect from these funds?

Based on the current data, XLV offers a dividend yield of 1.51%, while IXJ offers a 1.40% yield. While these figures are fairly close, the income an investor actually receives depends on the number of shares held and the fund's distribution policy. Investors should note that yields are dynamic and can change based on the performance of the underlying healthcare companies and the fluctuating market prices of the ETFs themselves.

Why is XLV considered more concentrated than IXJ?

XLV is classified as a US-only fund, meaning its performance is tied directly to the health of the American healthcare industry. Because it doesn't diversify across other regions, it is more sensitive to US regulatory changes or domestic economic shifts. IXJ, at a 0.38% expense ratio, provides international exposure which might mitigate some of these single-country risks, although its top holdings remain heavily weighted towards the same US-based giants.

Which fund has the longer track record?

Track record is often measured by the inception date of the fund. XLV was launched on 16 December 1998, giving it more historical performance data. IXJ was established slightly later on 13 November 2001. While both funds have been around for over two decades, XLV has experienced slightly more market cycles since its launch, providing a longer history for investors to study regarding its volatility and long-term performance.

How does global diversification in IXJ work?

IXJ aims to represent the global healthcare market. Although the sector weight data for this fund is currently not available, its inclusion of non-US companies differentiates it from purely domestic ETFs. However, as seen in its holdings, US-based companies still make up a very large portion of the top 10. The 0.38% expense ratio reflects the additional complexity involved in tracking and managing a portfolio that spans various international stock exchanges and currencies.

What should investors know about liquidity when comparing these two?

Liquidity refers to how easily you can buy or sell a fund at its current market price. XLV, with $43.5 billion in net assets, is a highly liquid and popular instrument. IXJ, with $4.3 billion, is still large but has a smaller asset base. For the average investor, both are likely easy to trade, but XLV's massive scale generally supports extremely efficient pricing and lower transaction costs during high-volume trading periods.

How do these funds fit into a diversified investment portfolio?

Both IXJ and XLV are sector-specific tools used by investors to target the healthcare industry. XLV fits a strategy focused on US healthcare leadership and low costs (0.08% expense ratio), while IXJ is associated with those wanting broader global healthcare exposure (0.38% expense ratio). Investors often use these to express a view on medical innovation or demographic trends, but they should remember that these are single-sector products and should complement a broader market portfolio.

What is the key takeaway for a beginner comparing IXJ and XLV?

The key takeaway is that while IXJ and XLV share the same top 10 holdings, they serve different investment goals. XLV is a high-liquidity, US-only fund with a very low 0.08% expense ratio, whereas IXJ offers a global mandate at a higher 0.38% fee. Beginners should consider if they prefer a focused US strategy or a global one, keeping in mind that healthcare sector weights for these specific funds are not currently available.

IXJ vs XLV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare IXJ (iShares Global Healthcare ETF) and XLV (Health Care Select Sector SPDR). We analyse fees, holdings, dividends, and how each fund tracks its market. IXJ offers global exposure at a 0.38% expense ratio, whereas XLV focuses on the US healthcare sector at 0.08%. Review the details to determine which aligns with your investment strategy. Educational content, not financial advice.

Compare IXJ (iShares Global Healthcare ETF) and XLV (Health Care Select Sector SPDR). We analyse fees, holdings, dividends, and how each fund tracks its market. IXJ offers global exposure at a 0.38% e...

Fund Snapshot

Key Fund Metrics

IXJ

Metric

XLV

0.38%

Expense Ratio

0.08%

1.40%

Dividend Yield

1.51%

$4.32B

Net Assets

$43.50B

133

Holdings

64

Nov 13, 2001

Inception Date

Dec 16, 1998

–

Index Tracked

–

Health

Fund Category

Health

XLV costs about $30.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IXJ	XLV
LLYEli Lilly and Company	10.38%	15.17%
JNJJohnson & Johnson	7.32%	10.57%
ABBVAbbVie Inc.	5.25%	7.61%
MRKMerck & Co., Inc.	4.48%	6.00%
UNHUnitedHealth Group Incorporated	4.18%	5.52%
TMOThermo Fisher Scientific Inc.	2.98%	3.96%
AMGNAmgen Inc.	2.58%	3.46%
GILDGilead Sciences, Inc.	2.31%	3.04%
ABTAbbott Laboratories	2.20%	2.90%
PFEPfizer Inc.	1.95%	2.57%

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IXJ vs JXI

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Investment Analysis

IXJ

Pros

IXJ offers global diversification, including non-US healthcare companies, which may reduce single-country concentration risk.
Its inception in November 2001 provides a lengthy track record of trading across multiple healthcare market cycles.
The dividend yield of 1.40 percent supplies some income while retaining capital appreciation potential from global healthcare holdings.

Considerations

The expense ratio of 0.38 percent is higher than many sector ETFs, increasing costs for long-term investors.
Net assets of $4.3 billion are modest compared to some peers, potentially affecting trading liquidity and bid-ask spreads.
Since sector weights are not available, investors may find it harder to assess precise global healthcare exposure and concentration risks.

XLV

Pros

XLV has a low expense ratio of 0.08 percent, which helps reduce annual investment costs for long-term holders.
With net assets of $43.5 billion, it is highly liquid and widely traded, supporting tighter bid-ask spreads for investors.
Its dividend yield of 1.51 percent, combined with major US healthcare holdings, can provide a moderate income stream.

Considerations

XLV is concentrated in United States healthcare companies, lacking the international diversification that some global sector funds provide.
Its top holdings include large weights in Eli Lilly and Johnson & Johnson, resulting in single-stock concentration risk.
Since sector weights are not available, investors may find it harder to assess US healthcare subsector diversification and risks.

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About IXJ and XLV

IXJ (IXJ)

The iShares Global Healthcare ETF (IXJ) provides investors with broad exposure to the global healthcare sector. This fund tracks an index of healthcare companies across developed and emerging markets, offering a diversified way to invest in pharmaceuticals, biotechnology, and medical devices. With 133 holdings and net assets of USD 4.32 billion, IXJ allows investors to tap into the demographic tailwinds driving healthcare demand worldwide. The fund has an expense ratio of 0.38% and a dividend yield of 1.40%, making it a potentially income-generating component of a diversified portfolio. However, it is important to remember that the healthcare sector can be volatile due to regulatory changes, drug development risks, and market fluctuations. Past performance is not a reliable indicator of future results, and the value of investments can fall as well as rise.

XLV (XLV)

Health Care Select Sector SPDR (XLV) is an exchange‑traded fund that provides diversified exposure to large-cap US health‑care companies across pharmaceuticals, biotechnology, medical devices, health‑care providers and insurers. It trades like a stock, offering a simple way to gain sector-specific exposure without selecting individual companies. Investors should note sector concentration risk — performance is tied to regulatory decisions, patent cycles, drug approvals and healthcare spending trends. XLV typically offers broad, liquid exposure and may distribute dividends, but yields and performance fluctuate. Fees for passive sector ETFs are generally low compared with active funds, though expenses reduce long‑term returns. Suitable for investors seeking targeted allocation to the health‑care sector within a diversified portfolio, XLV is not a substitute for personalised advice. This is general educational information only — values can fall as well as rise and past performance is not a reliable indicator of future results.

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IXJ vs XLV

Fund Snapshot