CAT vs. XLI

Last updated Jun 13, 2026

CAT (Caterpillar Inc.) is a stock, while XLI (Industrial Select Sector SPDR Fund) is Industrials Equities fund tracking the Industrial Select Sector Index. Over the past 10 years, CAT returned 31.33%/yr vs 14.15%/yr for XLI. A 0.72 correlation means they provide meaningful diversification when combined.

Performance

CAT vs. XLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Caterpillar Inc. (CAT) and Industrial Select Sector SPDR Fund (XLI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CAT achieves a 59.62% return, which is significantly higher than XLI's 13.90% return. Over the past 10 years, CAT has outperformed XLI with an annualized return of 31.33%, while XLI has yielded a comparatively lower 14.15% annualized return.

CAT

• 1D: 1.44%
• 1M: -1.05%
• YTD: 59.62%
• 6M: 52.94%
• 1Y: 157.79%
• 3Y*: 57.16%
• 5Y*: 35.17%
• 10Y*: 31.33%

XLI

• 1D: 0.59%
• 1M: 0.96%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

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

CAT vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CAT Caterpillar Inc.	59.62%	60.30%	24.66%	25.95%	18.60%	15.95%	26.97%	19.51%	-17.56%	75.03%
XLI Industrial Select Sector SPDR Fund	13.90%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between CAT and XLI is 0.76, 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	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.72

The correlation between CAT and XLI has been stable across timeframes, ranging from 0.72 to 0.77 - a consistent structural relationship.

Return for Risk

CAT vs. XLI — Risk / Return Rank

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

CAT

CAT Risk / Return Rank: 98
CAT Sharpe Ratio Rank: 98
CAT Sortino Ratio Rank: 98
CAT Omega Ratio Rank: 97
CAT Calmar Ratio Rank: 98
CAT Martin Ratio Rank: 99

XLI

XLI Risk / Return Rank: 48
XLI Sharpe Ratio Rank: 49
XLI Sortino Ratio Rank: 50
XLI Omega Ratio Rank: 46
XLI Calmar Ratio Rank: 45
XLI Martin Ratio Rank: 52

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.

CAT vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Industrial Select Sector SPDR Fund (XLI). 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.

	CAT	XLI	Difference
Sharpe ratio: Return per unit of total volatility	4.43	1.50	+2.93
Sortino ratio: Return per unit of downside risk	5.03	2.17	+2.86
Omega ratio: Gain probability vs. loss probability	1.65	1.26	+0.39
Calmar ratio: Return relative to maximum drawdown	11.24	1.98	+9.25
Martin ratio: Return relative to average drawdown	36.80	7.82	+28.98

CAT vs. XLI - Sharpe Ratio Comparison

The current CAT Sharpe Ratio is 4.43, which is higher than the XLI Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of CAT and XLI, 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

CAT vs. XLI - Drawdown Comparison

The maximum CAT drawdown since its inception was -73.43%, which is greater than XLI's maximum drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for CAT and XLI.

Drawdown Indicators

	CAT	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-73.43%	-62.26%	-11.17%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-12.21%	-1.67%
Max Drawdown (3Y) Largest decline over 3 years	-34.05%	-18.49%	-15.56%
Max Drawdown (5Y) Largest decline over 5 years	-34.05%	-21.64%	-12.41%
Max Drawdown (10Y) Largest decline over 10 years	-43.36%	-42.33%	-1.03%
Current Drawdown Current decline from peak	-3.18%	-1.24%	-1.94%
Average Drawdown Average peak-to-trough decline	-19.73%	-9.20%	-10.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	3.09%	+1.14%

Volatility

CAT vs. XLI - Volatility Comparison

Caterpillar Inc. (CAT) has a higher volatility of 13.16% compared to Industrial Select Sector SPDR Fund (XLI) at 6.22%. This indicates that CAT's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CAT	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.16%	6.22%	+6.94%
Volatility (6M) Calculated over the trailing 6-month period	28.37%	13.59%	+14.78%
Volatility (1Y) Calculated over the trailing 1-year period	35.19%	16.17%	+19.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.79%	17.55%	+13.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.98%	20.04%	+10.94%

Dividends

CAT vs. XLI - Dividend Comparison

CAT's dividend yield for the trailing twelve months is around 0.66%, less than XLI's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAT Caterpillar Inc.	0.66%	1.02%	1.49%	1.69%	1.93%	2.07%	2.26%	2.56%	2.58%	1.97%	3.32%	4.33%
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both CAT and XLI in my portfolio?

CAT and XLI have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CAT or XLI?

CAT has higher volatility (13.16%) compared to XLI (6.22%). In terms of maximum drawdown, CAT dropped -73.43% vs XLI's -62.26%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (4.43 vs 1.50), 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.