THW vs XLV: Correlation
abrdn World Healthcare Fund Shares of Beneficial Interest (THW) and Health Care Select Sector SPDR Fund (XLV) show a strong relationship: their 3-year correlation of weekly returns is 0.68.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are THW and XLV?
Across a 3-year window, the weekly returns of THW and XLV correlate at 0.68, strong. The past 12 months show a weaker link (0.54) than the 3-year average (0.68). Stretching to 5 years gives 0.70, with an annualized covariance of 212.8 %².
Among the 25 assets we track against THW, XLV ranks #6 by 3-year correlation. The trailing year gives THW the advantage: +33.7% versus +27.5%, a 6.2-point spread.
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.
THW vs XLV: side by side
| THW (abrdn World Healthcare Fund Shares of Beneficial Interest) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +33.7% | +27.5% |
| 5-year return | +40.2% | +37.4% |
| Volatility (ann.) | 21.4% | 14.7% |
| Beta vs S&P 500 | 0.75 | 0.42 |
| Max drawdown (3Y) | -25.4% | -17.1% |
| Market cap | $0.6B | – |
| P/E (trailing) | 6.6 | – |
| Dividend yield | 0.00% | 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 | THW | XLV |
|---|---|---|
| 2022 | -1.2% | -2.1% |
| 2023 | -11.5% | +2.1% |
| 2024 | +5.4% | +2.5% |
| 2025 | +31.1% | +14.5% |
| 2026 | +18.0% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are THW and XLV good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between THW and XLV?
As of 2026-08-27, the correlation of weekly returns between THW and XLV is 0.68 over 3 years, 0.54 over 1 year and 0.70 over 5 years.
Is XLV a good diversifier for THW?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/thw-vs-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/thw-vs-xlv/)
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Related comparisons
Hubs: THW correlations · XLV correlations
