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XHS - ETF AI Analysis

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XHS

SPDR S&P Health Care Services ETF (XHS)

Rating:67Neutral
Price Target:
XHS, the SPDR S&P Health Care Services ETF, earns a solid overall rating driven by strong contributors like Progyny, Elevance Health, HealthEquity, and Pediatrix, which show robust financial performance, positive earnings calls, and strategic growth initiatives. However, holdings such as DaVita and Guardant Health, which face profitability, financial stability, and momentum challenges, modestly weigh on the fund’s appeal. The main risk factor is its focus on health care services, meaning the ETF is sensitive to sector-specific issues like reimbursement changes, regulation, and healthcare cost pressures.
Positive Factors
Broad Health Care Services Exposure
The ETF holds many different health care services companies, which helps spread risk within this specialized part of the market.
Strong Top Holdings Momentum
Most of the largest positions have shown strong year-to-date gains, which has supported the fund’s recent performance.
Moderate Expense Ratio
The fund’s fee is reasonable for a specialized sector ETF, allowing investors to keep more of their returns compared with many niche funds that charge higher costs.
Negative Factors
Single-Sector Concentration
With almost all assets in health care, the ETF is heavily exposed to changes in health care policy, regulation, and industry trends.
U.S.-Only Geographic Focus
The portfolio is almost entirely invested in U.S. companies, offering little diversification across different countries and economies.
Small Asset Base
The relatively low assets under management may mean lower trading volume and wider bid-ask spreads, which can increase trading costs for investors.

XHS vs. SPDR S&P 500 ETF (SPY)

XHS Summary

The SPDR S&P Health Care Services ETF (XHS) tracks the S&P Health Care Services Select Industry Index, focusing on U.S. companies that provide medical care and related services. It holds a mix of health insurers, senior living operators, and service providers, including well-known names like Centene and Cardinal Health. Someone might invest in XHS to get diversified exposure to the health care services theme, which can benefit from an aging population and steady demand for medical care. A key risk is that it is concentrated in one sector, so it can rise or fall sharply with changes in health care policy and costs.
How much will it cost me?The SPDR S&P Health Care Services ETF (XHS) has an expense ratio of 0.35%, meaning you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad-market index funds.
What would affect this ETF?The SPDR S&P Health Care Services ETF (XHS) could benefit from increasing demand for health care services driven by an aging population and advancements in medical technology, which support innovation and growth in its top holdings like NeoGenomics and Guardant Health. However, potential risks include regulatory changes or shifts in government health care policies that could impact profitability, as well as broader economic conditions that may affect consumer spending on health care services. With its strong focus on U.S.-based health care providers, the ETF is well-positioned to capitalize on the sector's resilience but remains sensitive to policy and economic fluctuations.

XHS Top 10 Holdings

XHS is very much a U.S. health‑care workhorse, with performance driven by a mix of rising service providers and steadier giants. Acadia Healthcare has been one of the fund’s brighter spots, riding strong growth momentum, while BrightSpring and Ensign Group add to the upside with solid, if sometimes pricey, trajectories. On the other side, Brookdale Senior Living and Concentra have been more mixed, with leverage and profitability issues occasionally putting sand in the gears. Distributors like McKesson and Cardinal Health play a steadier, stabilizing role rather than setting the pace.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Alignment Healthcare2.28%$1.97M$4.19B3.85%
60
Neutral
Humana2.23%$1.93M$23.07B-34.87%
69
Neutral
BrightSpring Health Services, Inc.2.16%$1.86M$8.77B165.24%
67
Neutral
Acadia Healthcare2.12%$1.83M$2.39B-0.80%
61
Neutral
Elevance Health2.11%$1.82M$68.76B-29.17%
76
Outperform
Pediatrix Medical Group2.08%$1.79M$1.78B60.79%
76
Outperform
UnitedHealth2.07%$1.78M$276.23B-49.23%
72
Outperform
Cigna2.05%$1.77M$71.52B-17.85%
72
Outperform
Encompass Health2.04%$1.76M$10.66B4.97%
64
Neutral
Guardant Health2.03%$1.75M$10.31B79.82%
61
Neutral

XHS Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
104.99
Negative
100DMA
106.58
Negative
200DMA
102.29
Positive
Market Momentum
MACD
-0.55
Negative
RSI
47.84
Neutral
STOCH
79.71
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XHS, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 101.97, equal to the 50-day MA of 104.99, and equal to the 200-day MA of 102.29, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XHS.

XHS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$86.29M0.35%
67
Neutral
$95.73M0.54%
53
Neutral
$67.07M0.19%
65
Neutral
$55.22M0.34%
60
Neutral
$34.82M0.65%
48
Neutral
$29.39M0.60%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XHS
SPDR S&P Health Care Services ETF
102.66
5.37
5.52%
LFSC
F/M Emerald Life Sciences Innovation ETF
IBBQ
Invesco Nasdaq Biotechnology ETF
BBP
Virtus LifeSci Biotech Products ETF
BBC
Virtus LifeSci Biotech Clinical Trials ETF
FTXH
First Trust Nasdaq Pharmaceuticals ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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