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Consumer Discretionary Select Sector SPDR Fund (XLY) Sharpe Ratio: 0.64

ETF · Currency in USD · Last updated Jun 17, 2026

XLY is a passive ETF by State Street tracking the investment results of the Consumer Discretionary Select Sector Index. XLY launched on Dec 16, 1998 and has a 0.13% expense ratio.

XLY's Sharpe Ratio of 0.64 indicates that for each unit of volatility, it generates 0.64 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 17, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

XLY Sharpe Ratio Rank

XLY Sharpe Ratio Rank: 19.119
Concerning

XLY ranks above 19.1% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Weak risk-adjusted returns relative to category peers
  • Evaluate whether this holding aligns with your risk-return objectives
  • Consider reducing exposure or re-evaluating position size
  • Review higher-ranked alternatives in the same category

XLY Sharpe Ratio Market Positioning

The chart shows XLY's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.87 or lower
  • Yellow zone (middle 50%): 0.87 to 2.22
  • Green zone (top 25%): 2.22 or higher
  • Top 1%: 7.43+
  • Median: 1.63 — half of all investments score higher

How it compares to other similar ETFs

The table compares Consumer Discretionary Select Sector SPDR Fund's Sharpe Ratio with other ETFs in the Consumer Discretionary Equities category across multiple time periods, showing how XLY's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 17, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
CARZFirst Trust NASDAQ Global Auto Index Fund3.49
BEDZAdvisorShares Hotel ETF1.29
PEJInvesco Dynamic Leisure & Entertainment ETF1.19
RTHVanEck Vectors Retail ETF1.10
XRTSPDR S&P Retail ETF0.69
FXDFirst Trust Consumer Discretionary AlphaDEX Fund0.68
FDISFidelity MSCI Consumer Discretionary Index ETF0.66
VCRVanguard Consumer Discretionary ETF0.65
XLYConsumer Discretionary Select Sector SPDR Fund0.64
PSCDInvesco S&P SmallCap Consumer Discretionary ETF0.62

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows XLY's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when XLY consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does XLY fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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