CAT vs. XLP

Last updated Jun 13, 2026

CAT (Caterpillar Inc.) is a stock, while XLP (State Street Consumer Staples Select Sector SPDR ETF) is Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index. Over the past 10 years, CAT returned 31.33%/yr vs 7.60%/yr for XLP. At a 0.38 correlation, their price movements are largely independent.

Performance

CAT vs. XLP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Caterpillar Inc. (CAT) and State Street Consumer Staples Select Sector SPDR ETF (XLP). 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 XLP's 11.10% return. Over the past 10 years, CAT has outperformed XLP with an annualized return of 31.33%, while XLP has yielded a comparatively lower 7.60% 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%

XLP

• 1D: 0.65%
• 1M: 0.99%
• YTD: 11.10%
• 6M: 9.54%
• 1Y: 8.93%
• 3Y*: 8.26%
• 5Y*: 6.65%
• 10Y*: 7.60%

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

CAT vs. XLP - 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%
XLP State Street Consumer Staples Select Sector SPDR ETF	11.10%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%

Correlation

The correlation between CAT and XLP is 0.06, 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	0.06
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.38

Over the past year, the correlation between CAT and XLP has dropped to 0.06 - well below their long-term average of 0.38, suggesting their price drivers have been diverging.

Return for Risk

CAT vs. XLP — 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

XLP

XLP Risk / Return Rank: 19
XLP Sharpe Ratio Rank: 20
XLP Sortino Ratio Rank: 20
XLP Omega Ratio Rank: 18
XLP Calmar Ratio Rank: 20
XLP Martin Ratio Rank: 17

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. XLP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and State Street Consumer Staples Select Sector SPDR ETF (XLP). 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	XLP	Difference
Sharpe ratio: Return per unit of total volatility	4.43	0.59	+3.84
Sortino ratio: Return per unit of downside risk	5.03	0.94	+4.10
Omega ratio: Gain probability vs. loss probability	1.65	1.11	+0.54
Calmar ratio: Return relative to maximum drawdown	11.24	0.79	+10.45
Martin ratio: Return relative to average drawdown	36.80	1.52	+35.28

CAT vs. XLP - Sharpe Ratio Comparison

The current CAT Sharpe Ratio is 4.43, which is higher than the XLP Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of CAT and XLP, 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. XLP - Drawdown Comparison

The maximum CAT drawdown since its inception was -73.43%, which is greater than XLP's maximum drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for CAT and XLP.

Drawdown Indicators

	CAT	XLP	Difference
Max Drawdown Largest peak-to-trough decline	-73.43%	-35.90%	-37.53%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-9.69%	-4.19%
Max Drawdown (3Y) Largest decline over 3 years	-34.05%	-12.39%	-21.66%
Max Drawdown (5Y) Largest decline over 5 years	-34.05%	-16.30%	-17.75%
Max Drawdown (10Y) Largest decline over 10 years	-43.36%	-24.51%	-18.85%
Current Drawdown Current decline from peak	-3.18%	-4.12%	+0.94%
Average Drawdown Average peak-to-trough decline	-19.73%	-7.06%	-12.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	5.01%	-0.78%

Volatility

CAT vs. XLP - Volatility Comparison

Caterpillar Inc. (CAT) has a higher volatility of 13.16% compared to State Street Consumer Staples Select Sector SPDR ETF (XLP) at 4.53%. This indicates that CAT's price experiences larger fluctuations and is considered to be riskier than XLP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CAT	XLP	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.16%	4.53%	+8.63%
Volatility (6M) Calculated over the trailing 6-month period	28.37%	10.14%	+18.23%
Volatility (1Y) Calculated over the trailing 1-year period	35.19%	12.90%	+22.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.79%	13.34%	+17.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.98%	14.75%	+16.23%

Dividends

CAT vs. XLP - Dividend Comparison

CAT's dividend yield for the trailing twelve months is around 0.66%, less than XLP's 2.53% 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%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.53%	2.75%	2.77%	2.63%	2.47%	2.28%	2.50%	2.57%	3.04%	2.62%	2.53%	2.52%

Frequently Asked Questions

Can I hold both CAT and XLP in my portfolio?

CAT and XLP have a correlation of 0.06, 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 XLP?

CAT has higher volatility (13.16%) compared to XLP (4.53%). In terms of maximum drawdown, CAT dropped -73.43% vs XLP's -35.90%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (4.43 vs 0.59), 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.