CUT vs. XLBI

Last updated Aug 2, 2026

CUT (Invesco MSCI Global Timber ETF) and XLBI (State Street Materials Select Sector SPDR Premium Income ETF) are both exchange-traded funds - CUT is a Materials fund tracking the Beacon Global Timber Index, while XLBI is a Derivative Income fund actively managed by State Street. CUT is passively managed, while XLBI is actively managed. Over the past year, CUT returned 3.71% vs 14.41% for XLBI. Their 0.71 correlation means they have sometimes moved together and sometimes differently. CUT charges 0.55%/yr vs 0.35%/yr for XLBI.

Performance

CUT vs. XLBI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco MSCI Global Timber ETF (CUT) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CUT achieves a 2.55% return, which is significantly lower than XLBI's 7.49% return.

CUT

• 1D: -0.77%
• 1M: 5.48%
• 6M: 0.35%
• YTD: 2.55%
• 1Y: 3.71%
• 3Y*: 0.91%
• 5Y*: -2.27%
• 10Y*: 4.61%
• ALL TIME*: 3.07%

XLBI

• 1D: -1.27%
• 1M: -1.73%
• 6M: 3.94%
• YTD: 7.49%
• 1Y: 14.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 9.90%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CUT Invesco MSCI Global Timber ETF	$44.52K	$39.34K	$61.87K
XLBI State Street Materials Select Sector SPDR Premium Income ETF	$131.30K	$122.38K	$132.20K

CUT vs. XLBI - Yearly Performance Comparison

	2026 (YTD)	2025
CUT Invesco MSCI Global Timber ETF	2.55%	-3.18%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	7.49%	2.25%

Correlation

The correlation between CUT and XLBI is 0.71, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.71
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.71

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

CUT vs. XLBI - Sectors Allocation Comparison

Sectors	CUT	XLBI
Consumer Cyclical	49.2%	-
Basic Materials	37.4%	-
Real Estate	9.5%	-
Industrials	3.9%	-
Financial Services	0.3%	100.5%
Consumer Defensive	0.2%	-
Technology	0.1%	-
Communication Services	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

CUT vs. XLBI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

CUT

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

XLBI

XLBI Risk / Return Rank: 38
XLBI Sharpe Ratio Rank: 39
XLBI Sortino Ratio Rank: 37
XLBI Omega Ratio Rank: 38
XLBI Calmar Ratio Rank: 37
XLBI Martin Ratio Rank: 43

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

CUT vs. XLBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco MSCI Global Timber ETF (CUT) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). 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.

	CUT	XLBI	Difference
Sharpe ratio: Return per unit of total volatility	0.21	0.97	-0.76
Sortino ratio: Return per unit of downside risk	0.45	1.38	-0.93
Omega ratio: Gain probability vs. loss probability	1.05	1.18	-0.13
Calmar ratio: Return relative to maximum drawdown	0.20	1.25	-1.05
Martin ratio: Return relative to average drawdown	0.38	4.66	-4.28

CUT vs. XLBI - Sharpe Ratio Comparison

The current CUT Sharpe Ratio is 0.21, which is lower than the XLBI Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of CUT and XLBI, 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

CUT vs. XLBI - Drawdown Comparison

The maximum CUT drawdown since its inception was -70.03%, which is greater than XLBI's maximum drawdown of -10.62%. Use the drawdown chart below to compare losses from any high point for CUT and XLBI.

Drawdown Indicators

	CUT	XLBI	Difference
Max Drawdown Largest peak-to-trough decline	-70.03%	-10.62%	-59.41%
Max Drawdown (1Y) Largest decline over 1 year	-19.62%	-10.62%	-9.00%
Max Drawdown (3Y) Largest decline over 3 years	-22.23%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.40%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.76%	—	—
Current Drawdown Current decline from peak	-16.37%	-2.43%	-13.94%
Average Drawdown Average peak-to-trough decline	-15.31%	-2.10%	-13.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.44%	2.86%	+7.58%

Volatility

CUT vs. XLBI - Volatility Comparison

Invesco MSCI Global Timber ETF (CUT) has a higher volatility of 6.63% compared to State Street Materials Select Sector SPDR Premium Income ETF (XLBI) at 4.91%. This indicates that CUT's price experiences larger fluctuations and is considered to be riskier than XLBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CUT	XLBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.63%	4.91%	+1.72%
Volatility (6M) Calculated over the trailing 6-month period	15.11%	11.38%	+3.73%
Volatility (1Y) Calculated over the trailing 1-year period	19.10%	13.82%	+5.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.68%	13.92%	+4.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.10%	13.92%	+6.18%

CUT vs. XLBI - Expense Ratio Comparison

CUT has a 0.55% expense ratio, which is higher than XLBI's 0.35% expense ratio.

Dividends

CUT vs. XLBI - Dividend Comparison

CUT's dividend yield for the trailing twelve months is around 2.40%, less than XLBI's 14.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.40%	2.46%	3.05%	2.44%	2.58%	1.57%	1.65%	2.67%	3.43%	1.57%	2.08%	1.52%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	14.88%	7.71%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CUT and XLBI in my portfolio?

CUT and XLBI have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CUT or XLBI?

CUT has higher volatility (6.63%) compared to XLBI (4.91%). In terms of maximum drawdown, CUT dropped -70.03% vs XLBI's -10.62%.

Which ETF is better, CUT or XLBI?

On 1-year performance, XLBI leads with 14.41% vs 3.71% for CUT. On fees, XLBI is cheaper at 0.35% per year. On volatility, XLBI has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CUT or XLBI?

Over the 1-year period, XLBI has performed better with a 14.41% return vs 3.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CUT or XLBI?

XLBI is cheaper with a 0.35% expense ratio, compared with 0.55% for CUT.

Which ETF pays a higher dividend yield, CUT or XLBI?

XLBI has the higher dividend yield at 14.88%, compared with 2.40% for CUT.

What is the main difference between CUT and XLBI?

CUT is categorized as Materials, while XLBI is Derivative Income. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.55% for CUT and 0.35% for XLBI.

Which has better risk-adjusted returns?

XLBI currently has the higher Sharpe Ratio (0.97 vs 0.21), 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.