BWZ vs. XLE
BWZ (SPDR Bloomberg Barclays Short Term International Treasury Bond ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - BWZ is a International Government Bonds fund tracking the Bloomberg Global Treasury (1-3 Y) Customized, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, BWZ returned -0.60%/yr vs 9.37%/yr for XLE. At a 0.17 correlation, their price movements are largely independent. BWZ charges 0.35%/yr vs 0.08%/yr for XLE.
Performance
BWZ vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, BWZ achieves a -1.98% return, which is significantly lower than XLE's 23.49% return. Over the past 10 years, BWZ has underperformed XLE with an annualized return of -0.60%, while XLE has yielded a comparatively higher 9.37% annualized return.
BWZ
- 1D
- -0.34%
- 1M
- -1.45%
- YTD
- -1.98%
- 6M
- -1.95%
- 1Y
- -1.90%
- 3Y*
- 2.03%
- 5Y*
- -1.91%
- 10Y*
- -0.60%
XLE
- 1D
- 0.74%
- 1M
- -7.80%
- YTD
- 23.49%
- 6M
- 24.07%
- 1Y
- 30.55%
- 3Y*
- 15.73%
- 5Y*
- 18.87%
- 10Y*
- 9.37%
BWZ vs. XLE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | -1.98% | 10.47% | -5.31% | 2.97% | -10.56% | -6.85% | 6.47% | 0.99% | -3.36% | 10.18% |
XLE State Street Energy Select Sector SPDR ETF | 23.49% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between BWZ and XLE is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2009 | 0.17 |
The correlation between BWZ and XLE shifts across timeframes, from -0.09 (1 year) to 0.17 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
BWZ vs. XLE — Risk / Return Rank
BWZ
XLE
BWZ vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) and State Street Energy Select Sector SPDR ETF (XLE). 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.
| BWZ | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.76 | ||
| Sortino ratioReturn per unit of downside risk | -2.36 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.25 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | -0.37 | 2.18 | -2.55 |
| Martin ratioReturn relative to average drawdown | -0.78 | 6.53 | -7.31 |
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Drawdowns
BWZ vs. XLE - Drawdown Comparison
The maximum BWZ drawdown since its inception was -34.23%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for BWZ and XLE.
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Drawdown Indicators
| BWZ | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.23% | -71.26% | +37.03% |
Max Drawdown (1Y)Largest decline over 1 year | -5.15% | -14.05% | +8.90% |
Max Drawdown (3Y)Largest decline over 3 years | -8.60% | -20.14% | +11.54% |
Max Drawdown (5Y)Largest decline over 5 years | -22.15% | -26.04% | +3.89% |
Max Drawdown (10Y)Largest decline over 10 years | -24.90% | -66.81% | +41.91% |
Current DrawdownCurrent decline from peak | -23.46% | -12.32% | -11.14% |
Average DrawdownAverage peak-to-trough decline | -16.12% | -17.96% | +1.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.42% | 4.69% | -2.27% |
Volatility
BWZ vs. XLE - Volatility Comparison
The current volatility for SPDR Bloomberg Barclays Short Term International Treasury Bond ETF (BWZ) is 1.78%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.12%. This indicates that BWZ experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BWZ | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.78% | 7.12% | -5.34% |
Volatility (6M)Calculated over the trailing 6-month period | 5.11% | 16.82% | -11.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.86% | 20.93% | -14.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.60% | 25.98% | -18.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.95% | 29.60% | -22.65% |
BWZ vs. XLE - Expense Ratio Comparison
BWZ has a 0.35% expense ratio, which is higher than XLE's 0.08% expense ratio.
Dividends
BWZ vs. XLE - Dividend Comparison
BWZ's dividend yield for the trailing twelve months is around 2.12%, less than XLE's 2.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BWZ SPDR Bloomberg Barclays Short Term International Treasury Bond ETF | 2.12% | 2.05% | 2.47% | 1.63% | 0.44% | 0.60% | 0.13% | 0.43% | 1.10% | 0.40% | 0.13% | 0.06% |
XLE State Street Energy Select Sector SPDR ETF | 2.79% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
BWZ and XLE have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.12%) compared to BWZ (1.78%). In terms of maximum drawdown, BWZ dropped -34.23% vs XLE's -71.26%.
On 10-year performance, XLE leads with 9.37% vs -0.60% for BWZ. On fees, XLE is cheaper at 0.08% per year. On volatility, BWZ has been the lower-risk option at 1.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.37% return vs -0.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.35% for BWZ.
XLE has the higher dividend yield at 2.79%, compared with 2.12% for BWZ.
BWZ is categorized as International Government Bonds, while XLE is Energy Equities. BWZ tracks Bloomberg Global Treasury (1-3 Y) Customized, while XLE tracks Energy Select Sector Index. Their fees differ too: 0.35% for BWZ and 0.08% for XLE.
XLE currently has the higher Sharpe Ratio (1.48 vs -0.28), 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.
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