DGS vs. XLB
DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) and XLB (Materials Select Sector SPDR ETF) are both exchange-traded funds - DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index, while XLB is a Materials fund tracking the Materials Select Sector Index. Both are passively managed. Over the past 10 years, DGS returned 10.14%/yr vs 10.54%/yr for XLB. A 0.67 correlation means they provide meaningful diversification when combined. DGS charges 0.58%/yr vs 0.13%/yr for XLB.
Performance
DGS vs. XLB - Performance Comparison
Loading charts...
Returns By Period
The year-to-date returns for both investments are quite close, with DGS having a 14.94% return and XLB slightly higher at 15.57%. Both investments have delivered pretty close results over the past 10 years, with DGS having a 10.14% annualized return and XLB not far ahead at 10.54%.
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
XLB
- 1D
- 1.87%
- 1M
- 0.99%
- YTD
- 15.57%
- 6M
- 16.68%
- 1Y
- 21.77%
- 3Y*
- 10.88%
- 5Y*
- 6.01%
- 10Y*
- 10.54%
DGS vs. XLB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
XLB Materials Select Sector SPDR ETF | 15.57% | 9.94% | 0.15% | 12.46% | -12.30% | 27.44% | 20.46% | 24.13% | -14.88% | 24.01% |
Correlation
The correlation between DGS and XLB 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 | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | 0.67 |
The correlation between DGS and XLB has been stable across timeframes, ranging from 0.59 to 0.67 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
DGS vs. XLB — Risk / Return Rank
DGS
XLB
DGS vs. XLB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and Materials Select Sector SPDR ETF (XLB). 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.
| DGS | XLB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.27 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.20 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.38 | 1.65 | +0.73 |
| Martin ratioReturn relative to average drawdown | 7.84 | 5.05 | +2.79 |
Loading charts...
Drawdowns
DGS vs. XLB - Drawdown Comparison
The maximum DGS drawdown since its inception was -61.83%, roughly equal to the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for DGS and XLB.
Loading charts...
Drawdown Indicators
| DGS | XLB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -61.83% | -59.83% | -2.00% |
Max Drawdown (1Y)Largest decline over 1 year | -10.06% | -12.38% | +2.32% |
Max Drawdown (3Y)Largest decline over 3 years | -19.31% | -23.17% | +3.86% |
Max Drawdown (5Y)Largest decline over 5 years | -24.86% | -24.72% | -0.14% |
Max Drawdown (10Y)Largest decline over 10 years | -44.08% | -37.27% | -6.81% |
Current DrawdownCurrent decline from peak | -1.05% | -2.25% | +1.20% |
Average DrawdownAverage peak-to-trough decline | -12.57% | -10.83% | -1.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.05% | 4.04% | -0.99% |
Volatility
DGS vs. XLB - Volatility Comparison
WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and Materials Select Sector SPDR ETF (XLB) have volatilities of 7.30% and 7.05%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| DGS | XLB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.30% | 7.05% | +0.25% |
Volatility (6M)Calculated over the trailing 6-month period | 14.27% | 13.58% | +0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.60% | 17.49% | -0.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.08% | 19.06% | -3.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.39% | 20.70% | -3.31% |
DGS vs. XLB - Expense Ratio Comparison
DGS has a 0.58% expense ratio, which is higher than XLB's 0.13% expense ratio.
Dividends
DGS vs. XLB - Dividend Comparison
DGS's dividend yield for the trailing twelve months is around 3.20%, more than XLB's 1.68% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
XLB Materials Select Sector SPDR ETF | 1.68% | 1.92% | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% |
Frequently Asked Questions
DGS and XLB 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.
DGS has higher volatility (7.30%) compared to XLB (7.05%). In terms of maximum drawdown, DGS dropped -61.83% vs XLB's -59.83%.
On 10-year performance, XLB leads with 10.54% vs 10.14% for DGS. On fees, XLB is cheaper at 0.13% per year. On volatility, XLB has been the lower-risk option at 7.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLB has performed better with a 10.54% return vs 10.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLB is cheaper with a 0.13% expense ratio, compared with 0.58% for DGS.
DGS has the higher dividend yield at 3.20%, compared with 1.68% for XLB.
DGS is categorized as Emerging Markets Diversified, while XLB is Materials. DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index, while XLB tracks Materials Select Sector Index. They also come from different issuers: WisdomTree and State Street. Their fees differ too: 0.58% for DGS and 0.13% for XLB.
DGS currently has the higher Sharpe Ratio (1.44 vs 1.17), 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.
Find the right allocation for DGS and XLB
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer