ACWX vs. XLY

Last updated Jun 12, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - ACWX is a Foreign Large Cap Equities fund tracking the MSCI All Country World ex-U.S. Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, ACWX returned 9.87%/yr vs 12.72%/yr for XLY. A 0.71 correlation means they provide meaningful diversification when combined. ACWX charges 0.32%/yr vs 0.13%/yr for XLY.

Performance

ACWX vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ex U.S. ETF (ACWX) and Consumer Discretionary Select Sector SPDR Fund (XLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACWX achieves a 13.42% return, which is significantly higher than XLY's -2.41% return. Over the past 10 years, ACWX has underperformed XLY with an annualized return of 9.87%, while XLY has yielded a comparatively higher 12.72% annualized return.

ACWX

• 1D: 3.41%
• 1M: 1.94%
• YTD: 13.42%
• 6M: 14.35%
• 1Y: 28.83%
• 3Y*: 18.66%
• 5Y*: 8.17%
• 10Y*: 9.87%

XLY

• 1D: 2.48%
• 1M: -1.68%
• YTD: -2.41%
• 6M: -2.84%
• 1Y: 9.18%
• 3Y*: 13.28%
• 5Y*: 6.94%
• 10Y*: 12.72%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ACWX vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWX iShares MSCI ACWI ex U.S. ETF	13.42%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.41%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between ACWX and XLY is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.71

The correlation between ACWX and XLY has been stable across timeframes, ranging from 0.63 to 0.71 - a consistent structural relationship.

ACWX vs. XLY - Sectors Allocation Comparison

Sectors	ACWX	XLY
Financial Services	23.3%	-
Technology	22.4%	0.9%
Industrials	14.0%	0.1%
Consumer Cyclical	7.3%	97.6%
Healthcare	6.7%	-
Basic Materials	6.7%	-
Consumer Defensive	5.0%	-
Energy	4.8%	-
Communication Services	4.7%	1.3%
Utilities	2.8%	-
Real Estate	1.2%	-

Return for Risk

ACWX vs. XLY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ACWX

ACWX Risk / Return Rank: 64
ACWX Sharpe Ratio Rank: 64
ACWX Sortino Ratio Rank: 63
ACWX Omega Ratio Rank: 66
ACWX Calmar Ratio Rank: 61
ACWX Martin Ratio Rank: 65

XLY

XLY Risk / Return Rank: 19
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 19
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 19
XLY Martin Ratio Rank: 20

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ACWX vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ex U.S. ETF (ACWX) and Consumer Discretionary Select Sector SPDR Fund (XLY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ACWX	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.76	0.50	+1.26
Sortino ratio: Return per unit of downside risk	2.43	0.83	+1.60
Omega ratio: Gain probability vs. loss probability	1.32	1.10	+0.23
Calmar ratio: Return relative to maximum drawdown	2.53	0.62	+1.92
Martin ratio: Return relative to average drawdown	9.69	1.89	+7.80

ACWX vs. XLY - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 1.76, which is higher than the XLY Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of ACWX and XLY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ACWX vs. XLY - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, roughly equal to the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for ACWX and XLY.

Drawdown Indicators

	ACWX	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-59.05%	-1.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-14.98%	+3.56%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-26.01%	+12.17%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-39.67%	+9.60%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-39.67%	+4.29%
Current Drawdown Current decline from peak	-1.82%	-6.41%	+4.59%
Average Drawdown Average peak-to-trough decline	-13.32%	-9.55%	-3.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	4.86%	-1.88%

Volatility

ACWX vs. XLY - Volatility Comparison

iShares MSCI ACWI ex U.S. ETF (ACWX) has a higher volatility of 7.03% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 6.20%. This indicates that ACWX's price experiences larger fluctuations and is considered to be riskier than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWX	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.03%	6.20%	+0.83%
Volatility (6M) Calculated over the trailing 6-month period	14.36%	13.52%	+0.84%
Volatility (1Y) Calculated over the trailing 1-year period	16.43%	18.29%	-1.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	23.84%	-7.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.43%	22.08%	-4.65%

ACWX vs. XLY - Expense Ratio Comparison

ACWX has a 0.32% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

ACWX vs. XLY - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.49%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.49%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
XLY Consumer Discretionary Select Sector SPDR Fund	0.77%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%

Frequently Asked Questions

Can I hold both ACWX and XLY in my portfolio?

ACWX and XLY have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACWX or XLY?

ACWX has higher volatility (7.03%) compared to XLY (6.20%). In terms of maximum drawdown, ACWX dropped -60.40% vs XLY's -59.05%.

Which ETF is better, ACWX or XLY?

On 10-year performance, XLY leads with 12.72% vs 9.87% for ACWX. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or XLY?

Over the 10-year period, XLY has performed better with a 12.72% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.32% for ACWX.

Which ETF pays a higher dividend yield, ACWX or XLY?

ACWX has the higher dividend yield at 2.49%, compared with 0.77% for XLY.

What is the main difference between ACWX and XLY?

ACWX is categorized as Foreign Large Cap Equities, while XLY is Consumer Discretionary Equities. ACWX tracks MSCI All Country World ex-U.S. Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.32% for ACWX and 0.13% for XLY.

Which has better risk-adjusted returns?

ACWX currently has the higher Sharpe Ratio (1.76 vs 0.50), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.