FXI vs. XLB

Last updated Jun 13, 2026

FXI (iShares China Large-Cap ETF) and XLB (Materials Select Sector SPDR ETF) are both exchange-traded funds - FXI is a China Equities fund tracking the FTSE China 50 Index, while XLB is a Materials fund tracking the Materials Select Sector Index. Both are passively managed. Over the past 10 years, FXI returned 3.13%/yr vs 10.54%/yr for XLB. A 0.56 correlation means they provide meaningful diversification when combined. FXI charges 0.74%/yr vs 0.13%/yr for XLB.

Performance

FXI vs. XLB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares China Large-Cap ETF (FXI) and Materials Select Sector SPDR ETF (XLB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXI achieves a -7.83% return, which is significantly lower than XLB's 15.57% return. Over the past 10 years, FXI has underperformed XLB with an annualized return of 3.13%, while XLB has yielded a comparatively higher 10.54% annualized return.

FXI

• 1D: 1.09%
• 1M: -7.76%
• YTD: -7.83%
• 6M: -8.72%
• 1Y: -2.91%
• 3Y*: 10.41%
• 5Y*: -3.08%
• 10Y*: 3.13%

XLB

• 1D: 1.87%
• 1M: 0.23%
• YTD: 15.57%
• 6M: 16.68%
• 1Y: 20.35%
• 3Y*: 10.88%
• 5Y*: 6.01%
• 10Y*: 10.54%

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

FXI vs. XLB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXI iShares China Large-Cap ETF	-7.83%	28.95%	28.98%	-12.42%	-20.66%	-20.06%	8.92%	14.90%	-13.28%	36.26%
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 FXI and XLB is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Oct 8, 2004	0.56

The correlation between FXI and XLB shifts across timeframes, from 0.40 (5 years) to 0.56 (all time), reflecting how their relationship changes across market environments.

FXI vs. XLB - Sectors Allocation Comparison

Sectors	FXI	XLB
Financial Services	34.6%	-
Consumer Cyclical	25.3%	12.4%
Communication Services	12.2%	-
Technology	9.3%	-
Energy	5.3%	-
Industrials	4.1%	1.5%
Basic Materials	3.9%	87.6%
Healthcare	2.2%	-
Real Estate	1.1%	-
Consumer Defensive	0.9%	-
Utilities	0.4%	-

Return for Risk

FXI vs. XLB — Risk / Return Rank

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

FXI

FXI Risk / Return Rank: 8
FXI Sharpe Ratio Rank: 8
FXI Sortino Ratio Rank: 8
FXI Omega Ratio Rank: 8
FXI Calmar Ratio Rank: 8
FXI Martin Ratio Rank: 8

XLB

XLB Risk / Return Rank: 37
XLB Sharpe Ratio Rank: 37
XLB Sortino Ratio Rank: 37
XLB Omega Ratio Rank: 34
XLB Calmar Ratio Rank: 38
XLB Martin Ratio Rank: 37

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.

FXI vs. XLB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) 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.

	FXI	XLB	Difference
Sharpe ratio: Return per unit of total volatility	-0.15	1.17	-1.32
Sortino ratio: Return per unit of downside risk	-0.07	1.73	-1.80
Omega ratio: Gain probability vs. loss probability	0.99	1.20	-0.21
Calmar ratio: Return relative to maximum drawdown	-0.18	1.65	-1.83
Martin ratio: Return relative to average drawdown	-0.38	5.05	-5.43

FXI vs. XLB - Sharpe Ratio Comparison

The current FXI Sharpe Ratio is -0.15, which is lower than the XLB Sharpe Ratio of 1.17. The chart below compares the historical Sharpe Ratios of FXI and XLB, 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

FXI vs. XLB - Drawdown Comparison

The maximum FXI drawdown since its inception was -72.68%, which is greater than XLB's maximum drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for FXI and XLB.

Drawdown Indicators

	FXI	XLB	Difference
Max Drawdown Largest peak-to-trough decline	-72.68%	-59.83%	-12.85%
Max Drawdown (1Y) Largest decline over 1 year	-16.03%	-12.38%	-3.65%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-23.17%	-5.55%
Max Drawdown (5Y) Largest decline over 5 years	-54.94%	-24.72%	-30.22%
Max Drawdown (10Y) Largest decline over 10 years	-60.81%	-37.27%	-23.54%
Current Drawdown Current decline from peak	-27.42%	-2.25%	-25.17%
Average Drawdown Average peak-to-trough decline	-31.21%	-10.83%	-20.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.66%	4.04%	+3.62%

Volatility

FXI vs. XLB - Volatility Comparison

The current volatility for iShares China Large-Cap ETF (FXI) is 6.22%, while Materials Select Sector SPDR ETF (XLB) has a volatility of 7.05%. This indicates that FXI experiences smaller price fluctuations and is considered to be less risky than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXI	XLB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	7.05%	-0.83%
Volatility (6M) Calculated over the trailing 6-month period	14.30%	13.58%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	19.90%	17.49%	+2.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.67%	19.06%	+12.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.64%	20.70%	+6.94%

FXI vs. XLB - Expense Ratio Comparison

FXI has a 0.74% expense ratio, which is higher than XLB's 0.13% expense ratio.

Dividends

FXI vs. XLB - Dividend Comparison

FXI's dividend yield for the trailing twelve months is around 2.62%, more than XLB's 1.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXI iShares China Large-Cap ETF	2.62%	2.42%	1.76%	3.17%	2.61%	1.60%	2.19%	2.74%	2.69%	2.31%	2.69%	2.90%
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

Can I hold both FXI and XLB in my portfolio?

FXI and XLB have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXI or XLB?

XLB has higher volatility (7.05%) compared to FXI (6.22%). In terms of maximum drawdown, FXI dropped -72.68% vs XLB's -59.83%.

Which ETF is better, FXI or XLB?

On 10-year performance, XLB leads with 10.54% vs 3.13% for FXI. On fees, XLB is cheaper at 0.13% per year. On volatility, FXI has been the lower-risk option at 6.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXI or XLB?

Over the 10-year period, XLB has performed better with a 10.54% return vs 3.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXI or XLB?

XLB is cheaper with a 0.13% expense ratio, compared with 0.74% for FXI.

Which ETF pays a higher dividend yield, FXI or XLB?

FXI has the higher dividend yield at 2.62%, compared with 1.68% for XLB.

What is the main difference between FXI and XLB?

FXI is categorized as China Equities, while XLB is Materials. FXI tracks FTSE China 50 Index, while XLB tracks Materials Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.74% for FXI and 0.13% for XLB.

Which has better risk-adjusted returns?

XLB currently has the higher Sharpe Ratio (1.17 vs -0.15), 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.