CARZ vs. XLY

Last updated Jul 14, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both Consumer Discretionary Equities funds - CARZ tracks the NASDAQ OMX Global Automobile (TR) while XLY tracks the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, CARZ returned 14.96%/yr vs 12.26%/yr for XLY. A 0.67 correlation means they provide meaningful diversification when combined. CARZ charges 0.70%/yr vs 0.13%/yr for XLY.

Performance

CARZ vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) 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, CARZ achieves a 37.83% return, which is significantly higher than XLY's -2.43% return. Over the past 10 years, CARZ has outperformed XLY with an annualized return of 14.96%, while XLY has yielded a comparatively lower 12.26% annualized return.

CARZ

• 1D: -3.25%
• 1M: -7.39%
• 6M: 28.29%
• YTD: 37.83%
• 1Y: 72.79%
• 3Y*: 24.42%
• 5Y*: 14.20%
• 10Y*: 14.96%

XLY

• 1D: -1.02%
• 1M: -0.28%
• 6M: -6.44%
• YTD: -2.43%
• 1Y: 5.62%
• 3Y*: 10.78%
• 5Y*: 5.94%
• 10Y*: 12.26%

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

CARZ vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARZ First Trust NASDAQ Global Auto Index Fund	37.83%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.43%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between CARZ and XLY is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.67

The correlation between CARZ and XLY shifts across timeframes, from 0.59 (1 year) to 0.73 (5 years), reflecting how their relationship changes across market environments.

CARZ vs. XLY - Sectors Allocation Comparison

Sectors	CARZ	XLY
Technology	34.3%	0.9%
Consumer Cyclical	21.9%	99.0%
Industrials	8.6%	0.1%
Basic Materials	6.7%	-
Communication Services	1.9%	1.5%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

CARZ vs. XLY — Risk / Return Rank

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

CARZ

CARZ Risk / Return Rank: 88
CARZ Sharpe Ratio Rank: 90
CARZ Sortino Ratio Rank: 81
CARZ Omega Ratio Rank: 84
CARZ Calmar Ratio Rank: 93
CARZ Martin Ratio Rank: 91

XLY

XLY Risk / Return Rank: 14
XLY Sharpe Ratio Rank: 15
XLY Sortino Ratio Rank: 14
XLY Omega Ratio Rank: 13
XLY Calmar Ratio Rank: 14
XLY Martin Ratio Rank: 15

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.

CARZ vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) 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.

	CARZ	XLY	Difference
Sharpe ratio: Return per unit of total volatility	2.40	0.30	+2.09
Sortino ratio: Return per unit of downside risk	2.87	0.56	+2.32
Omega ratio: Gain probability vs. loss probability	1.40	1.06	+0.33
Calmar ratio: Return relative to maximum drawdown	5.07	0.38	+4.69
Martin ratio: Return relative to average drawdown	16.53	1.09	+15.44

CARZ vs. XLY - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 2.40, which is higher than the XLY Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of CARZ 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

CARZ vs. XLY - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for CARZ and XLY.

Drawdown Indicators

	CARZ	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-59.05%	+7.85%
Max Drawdown (1Y) Largest decline over 1 year	-14.44%	-14.98%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-26.01%	-1.83%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-39.67%	-0.63%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	-39.67%	-11.53%
Current Drawdown Current decline from peak	-12.82%	-6.44%	-6.38%
Average Drawdown Average peak-to-trough decline	-12.86%	-9.54%	-3.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.42%	5.17%	-0.75%

Volatility

CARZ vs. XLY - Volatility Comparison

First Trust NASDAQ Global Auto Index Fund (CARZ) has a higher volatility of 15.06% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 6.43%. This indicates that CARZ'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

	CARZ	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.06%	6.43%	+8.63%
Volatility (6M) Calculated over the trailing 6-month period	26.56%	14.15%	+12.41%
Volatility (1Y) Calculated over the trailing 1-year period	30.58%	18.71%	+11.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.09%	23.96%	+5.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.63%	22.09%	+4.54%

CARZ vs. XLY - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

CARZ vs. XLY - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.27%, more than XLY's 0.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.27%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
XLY Consumer Discretionary Select Sector SPDR Fund	0.78%	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 CARZ and XLY in my portfolio?

CARZ and XLY have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CARZ or XLY?

CARZ has higher volatility (15.06%) compared to XLY (6.43%). In terms of maximum drawdown, CARZ dropped -51.20% vs XLY's -59.05%.

Which ETF is better, CARZ or XLY?

On 10-year performance, CARZ leads with 14.96% vs 12.26% for XLY. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or XLY?

Over the 10-year period, CARZ has performed better with a 14.96% return vs 12.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.70% for CARZ.

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

CARZ has the higher dividend yield at 1.27%, compared with 0.78% for XLY.

What is the main difference between CARZ and XLY?

CARZ tracks NASDAQ OMX Global Automobile (TR), while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.70% for CARZ and 0.13% for XLY.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (2.40 vs 0.30), 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.