SPDR S&P Pharmaceuticals ETF

SPDR S&P Pharmaceuticals ETF (XPH) is a State Street index fund that holds U.S. drug companies from the S&P Pharmaceuticals Select Industry Index, which had 64 stocks as of July 31, 2026. The index gives its members roughly equal weight, so smaller drug developers such as Definium Therapeutics and MBX Biosciences count about as much as much larger firms. Its 0.35% expense ratio is below the 0.43% average of similar funds.

• Over the year to Oct 27, 2026, XPH returned +30.8%, 4th of 7 among similar funds.
• Its 5-year annualized return was +7.6%.
• Its worst full calendar year was 2021 (-10.6%); its best was 2025 (+31.6%).
• The deepest fall in its price history was 35% (Feb 17, 2021 to Nov 13, 2023), recovered by Nov 24, 2025.

As of Jun 30, 2026, the fund held 65 securities; the ten largest made up 22.18% of assets. It also reported 8.64% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors added a net $46.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.83%, +1.09%, +13.98%.

XPH tracks the S&P Pharmaceuticals Select Industry Index. S&P Dow Jones Indices runs the index and is not affiliated with State Street. The index starts with the S&P Total Market Index, which covers the broad U.S. stock market. It keeps only U.S.-based companies in the Pharmaceuticals sub-industry of GICS (the Global Industry Classification Standard). To get in, a company generally needs a float-adjusted market value (counting only shares available to trade) of at least $500 million plus heavy trading, or at least $400 million with even heavier trading. A stock is dropped if its value falls below $300 million or its trading dries up. The index held 64 stocks as of July 31, 2026.

The index is modified equal weighted. Most indexes give the biggest companies the biggest slices. This one gives its members roughly similar weights, so small drug developers matter about as much as large ones. It rebalances and resets its membership every quarter, on the third Friday of March, June, September and December. A second reweighting follows near the end of each of those months.

State Street's adviser, SSGA Funds Management, uses a sampling strategy. It may hold every stock in the index or a representative subset, but it must keep at least 80% of net assets in index stocks. It may also use futures contracts and cash to handle money moving in and out of the fund. The prospectus reports 69% portfolio turnover.

• XPH charges 0.35% a year, versus an average of 0.43% for the similar funds below (2nd of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

XPH is a narrow, equal-weighted bet on drug stocks that has fallen as much as 35%, so it fits better as a small add-on than as a foundation.

XPH could add a focused stake in U.S. drug makers to a broad portfolio, but its record has been bumpy. Its price history starts in June 2020, so the 2008 crisis and the 2020 crash aren't covered. In 2022 it fell 17.9% between April and May and didn't recover until February 2024. Its deepest drop, 35%, ran from February 2021 to November 2023, and it didn't regain its earlier high until November 2025. The prospectus also shows a 23.22% loss in 2016. Anyone who had to sell during a stretch like that would have locked in losses.

Income is small: the yield was 0.42% as of October 27, 2026, paid quarterly. On costs, the SEC's standard example ($10,000 invested, 5% yearly return) works out to $443 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).