FCOM vs. XLC

Last updated Jun 23, 2026

FCOM (Fidelity MSCI Communication Services Index ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - FCOM is a Large Cap Growth Equities fund tracking the MSCI USA IMI Communication Services 25/50 Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, FCOM returned 6.01%/yr vs 7.11%/yr for XLC. Their correlation of 0.95 suggests significant overlap in exposure. FCOM charges 0.08%/yr vs 0.13%/yr for XLC.

Performance

FCOM vs. XLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Communication Services Index ETF (FCOM) and Communication Services Select Sector SPDR Fund (XLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCOM achieves a -5.77% return, which is significantly higher than XLC's -8.70% return.

FCOM

• 1D: -2.39%
• 1M: -6.74%
• YTD: -5.77%
• 6M: -5.33%
• 1Y: 13.24%
• 3Y*: 21.45%
• 5Y*: 6.01%
• 10Y*: 11.05%

XLC

• 1D: -2.11%
• 1M: -7.21%
• YTD: -8.70%
• 6M: -7.87%
• 1Y: 5.47%
• 3Y*: 19.94%
• 5Y*: 7.11%
• 10Y*: —

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

FCOM vs. XLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FCOM Fidelity MSCI Communication Services Index ETF	-5.77%	26.06%	33.05%	44.65%	-38.97%	13.88%	28.33%	26.69%	0.55%
XLC Communication Services Select Sector SPDR Fund	-8.70%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.45%

Correlation

The correlation between FCOM and XLC is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018	0.95

The correlation between FCOM and XLC has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

FCOM vs. XLC - Sectors Allocation Comparison

Sectors	FCOM	XLC
Communication Services	98.0%	95.6%
Technology	1.7%	4.2%
Consumer Cyclical	0.2%	-
Real Estate	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Utilities	-	-

Return for Risk

FCOM vs. XLC — Risk / Return Rank

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

FCOM

FCOM Risk / Return Rank: 24
FCOM Sharpe Ratio Rank: 25
FCOM Sortino Ratio Rank: 24
FCOM Omega Ratio Rank: 23
FCOM Calmar Ratio Rank: 22
FCOM Martin Ratio Rank: 26

XLC

XLC Risk / Return Rank: 14
XLC Sharpe Ratio Rank: 14
XLC Sortino Ratio Rank: 13
XLC Omega Ratio Rank: 13
XLC Calmar Ratio Rank: 14
XLC Martin Ratio Rank: 16

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.

FCOM vs. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Communication Services Index ETF (FCOM) and Communication Services Select Sector SPDR Fund (XLC). 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.

	FCOM	XLC	Difference
Sharpe ratio: Return per unit of total volatility	0.84	0.41	+0.44
Sortino ratio: Return per unit of downside risk	1.29	0.66	+0.63
Omega ratio: Gain probability vs. loss probability	1.16	1.08	+0.08
Calmar ratio: Return relative to maximum drawdown	0.99	0.52	+0.47
Martin ratio: Return relative to average drawdown	3.50	1.56	+1.94

FCOM vs. XLC - Sharpe Ratio Comparison

The current FCOM Sharpe Ratio is 0.84, which is higher than the XLC Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of FCOM and XLC, 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

FCOM vs. XLC - Drawdown Comparison

The maximum FCOM drawdown since its inception was -46.76%, roughly equal to the maximum XLC drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for FCOM and XLC.

Drawdown Indicators

	FCOM	XLC	Difference
Max Drawdown Largest peak-to-trough decline	-46.76%	-46.65%	-0.11%
Max Drawdown (1Y) Largest decline over 1 year	-13.48%	-10.57%	-2.91%
Max Drawdown (3Y) Largest decline over 3 years	-21.16%	-17.97%	-3.19%
Max Drawdown (5Y) Largest decline over 5 years	-46.76%	-46.65%	-0.11%
Max Drawdown (10Y) Largest decline over 10 years	-46.76%	—	—
Current Drawdown Current decline from peak	-8.91%	-10.49%	+1.58%
Average Drawdown Average peak-to-trough decline	-8.65%	-10.57%	+1.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.80%	3.52%	+0.28%

Volatility

FCOM vs. XLC - Volatility Comparison

Fidelity MSCI Communication Services Index ETF (FCOM) has a higher volatility of 5.56% compared to Communication Services Select Sector SPDR Fund (XLC) at 4.63%. This indicates that FCOM's price experiences larger fluctuations and is considered to be riskier than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCOM	XLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.56%	4.63%	+0.93%
Volatility (6M) Calculated over the trailing 6-month period	11.87%	10.25%	+1.62%
Volatility (1Y) Calculated over the trailing 1-year period	15.79%	13.57%	+2.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.27%	20.74%	+0.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.01%	22.18%	-1.17%

FCOM vs. XLC - Expense Ratio Comparison

FCOM has a 0.08% expense ratio, which is lower than XLC's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FCOM vs. XLC - Dividend Comparison

FCOM's dividend yield for the trailing twelve months is around 1.02%, less than XLC's 1.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCOM Fidelity MSCI Communication Services Index ETF	1.02%	0.88%	0.87%	0.77%	1.04%	0.90%	0.68%	0.86%	2.78%	11.70%	2.27%	2.92%
XLC Communication Services Select Sector SPDR Fund	1.34%	1.13%	0.99%	0.82%	1.10%	0.74%	0.68%	0.82%	0.64%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FCOM and XLC in my portfolio?

With a correlation of 0.94, FCOM and XLC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FCOM or XLC?

FCOM has higher volatility (5.56%) compared to XLC (4.63%). In terms of maximum drawdown, FCOM dropped -46.76% vs XLC's -46.65%.

Which ETF is better, FCOM or XLC?

On 5-year performance, XLC leads with 7.11% vs 6.01% for FCOM. On fees, FCOM is cheaper at 0.08% per year. On volatility, XLC has been the lower-risk option at 4.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCOM or XLC?

Over the 5-year period, XLC has performed better with a 7.11% return vs 6.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCOM or XLC?

FCOM is cheaper with a 0.08% expense ratio, compared with 0.13% for XLC.

Which ETF pays a higher dividend yield, FCOM or XLC?

XLC has the higher dividend yield at 1.57%, compared with 1.02% for FCOM.

What is the main difference between FCOM and XLC?

FCOM is categorized as Large Cap Growth Equities, while XLC is Communications Equities. FCOM tracks MSCI USA IMI Communication Services 25/50 Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: Fidelity and State Street. Their fees differ too: 0.08% for FCOM and 0.13% for XLC.

Which has better risk-adjusted returns?

FCOM currently has the higher Sharpe Ratio (0.84 vs 0.41), 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.