CUT vs. XLBI

Last updated Jul 14, 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. A 0.71 correlation means they provide meaningful diversification when combined. 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 -4.74% return, which is significantly lower than XLBI's 6.83% return.

CUT

• 1D: -1.24%
• 1M: -0.70%
• 6M: -8.57%
• YTD: -4.74%
• 1Y: -8.82%
• 3Y*: -0.71%
• 5Y*: -3.71%
• 10Y*: 3.95%

XLBI

• 1D: -0.90%
• 1M: -1.70%
• 6M: 4.52%
• YTD: 6.83%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CUT vs. XLBI - Yearly Performance Comparison

	2026 (YTD)	2025
CUT Invesco MSCI Global Timber ETF	-4.74%	-3.18%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	6.83%	2.25%

Correlation

The correlation between CUT and XLBI is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.71

CUT vs. XLBI - Sectors Allocation Comparison

Sectors	CUT	XLBI
Consumer Cyclical	45.0%	-
Basic Materials	41.3%	-
Real Estate	10.1%	-
Industrials	3.6%	-
Financial Services	0.3%	98.9%
Consumer Defensive	0.2%	-
Technology	0.1%	-
Communication Services	-	-
Energy	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

CUT vs. XLBI — Risk / Return Rank

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

CUT

CUT Risk / Return Rank: 5
CUT Sharpe Ratio Rank: 5
CUT Sortino Ratio Rank: 5
CUT Omega Ratio Rank: 5
CUT Calmar Ratio Rank: 5
CUT Martin Ratio Rank: 5

XLBI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

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	-0.47	—	—
Sortino ratio: Return per unit of downside risk	-0.57	—	—
Omega ratio: Gain probability vs. loss probability	0.94	—	—
Calmar ratio: Return relative to maximum drawdown	-0.45	—	—
Martin ratio: Return relative to average drawdown	-0.88	—	—

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%	—	—
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	-22.31%	-2.76%	-19.55%
Average Drawdown Average peak-to-trough decline	-15.30%	-2.10%	-13.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.10%	—	—

Volatility

Volatility by Period

	CUT	XLBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.71%	—	—
Volatility (6M) Calculated over the trailing 6-month period	14.70%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	18.75%	13.94%	+4.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.57%	13.94%	+4.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.05%	13.94%	+6.11%

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 2.58%, less than XLBI's 14.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CUT Invesco MSCI Global Timber ETF	2.58%	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	14.97%	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 ETF is better, CUT or XLBI?

On fees, XLBI is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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 14.97%, compared with 2.58% 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.