BME vs XLV: Correlation
Measured on weekly returns over the past three years, Blackrock Health Sciences Trust (BME) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BME and XLV?
Over the past 3 years, BME and XLV moved with a correlation of 0.87, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.90 over 1 year against 0.87 over 3. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 183.3 %².
XLV is one of the assets that tracks BME most closely: it ranks #1 out of the 34 assets we track against BME. Over the last 12 months BME came out ahead by 8.5 percentage points (+36.0% against +27.5%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BME vs XLV: side by side
| BME (Blackrock Health Sciences Trust) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +36.0% | +27.5% |
| 5-year return | +33.5% | +37.4% |
| Volatility (ann.) | 14.4% | 14.7% |
| Beta vs S&P 500 | 0.45 | 0.42 |
| Max drawdown (3Y) | -14.4% | -17.1% |
| Market cap | – | – |
| P/E (trailing) | 7.8 | – |
| Dividend yield | 6.80% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | BME | XLV |
|---|---|---|
| 2022 | -4.6% | -2.1% |
| 2023 | -1.1% | +2.1% |
| 2024 | -0.1% | +2.5% |
| 2025 | +17.9% | +14.5% |
| 2026 | +17.9% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BME and XLV good diversifiers for each other?
No: a correlation of 0.87 means BME and XLV tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between BME and XLV?
As of 2026-08-27, the correlation of weekly returns between BME and XLV is 0.87 over 3 years, 0.90 over 1 year and 0.81 over 5 years.
Is XLV a good diversifier for BME?
No: a correlation of 0.87 means BME and XLV tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.87 mean?
A reading of 0.87 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bme-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bme-vs-xlv/)
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Related comparisons
Hubs: BME correlations · XLV correlations
