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HDV vs. XLC
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HDV vs. XLC

Last updated Jun 14, 2026

HDV (iShares Core High Dividend ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus 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, HDV returned 10.91%/yr vs 8.03%/yr for XLC. At a 0.47 correlation, their price movements are largely independent. HDV charges 0.08%/yr vs 0.13%/yr for XLC.

Performance

HDV vs. XLC - Performance Comparison

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

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Returns By Period

In the year-to-date period, HDV achieves a 15.30% return, which is significantly higher than XLC's -4.85% return.

HDV

1D
0.87%
1M
2.05%
YTD
15.30%
6M
15.20%
1Y
21.86%
3Y*
15.16%
5Y*
10.91%
10Y*
9.47%

XLC

1D
-0.42%
1M
-4.66%
YTD
-4.85%
6M
-3.59%
1Y
10.19%
3Y*
21.60%
5Y*
8.03%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

HDV vs. XLC - Yearly Performance Comparison

2026 (YTD)20252024202320222021202020192018
HDV
iShares Core High Dividend ETF		15.30%11.90%14.16%1.72%7.05%19.45%-6.48%20.22%1.37%
XLC
Communication Services Select Sector SPDR Fund		-4.85%23.08%34.71%52.82%-37.63%15.96%26.90%31.05%-16.45%

Correlation

The correlation between HDV and XLC is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.13

Correlation (3Y)
Calculated over the trailing 3-year period

0.26

Correlation (5Y)
Calculated over the trailing 5-year period

0.42

Correlation (All Time)
Calculated using the full available price history since Jun 19, 2018

0.47

Over the past year, the correlation between HDV and XLC has dropped to 0.13 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.

HDV vs. XLC - Sectors Allocation Comparison

Sectors
HDV
XLC

Consumer Defensive

24.2%

-

Energy

21.0%

-

Healthcare

17.0%

-

Financial Services

10.8%

-

Technology

9.7%
4.7%

Utilities

8.9%

-

Consumer Cyclical

6.0%

-

Industrials

1.3%

-

Basic Materials

1.1%

-

Communication Services

0.1%
95.1%

Real Estate

-

-

Consumer Defensive

HDV
24.2%
XLC

-

Energy

HDV
21.0%
XLC

-

Healthcare

HDV
17.0%
XLC

-

Financial Services

HDV
10.8%
XLC

-

Technology

HDV
9.7%
XLC
4.7%

Utilities

HDV
8.9%
XLC

-

Consumer Cyclical

HDV
6.0%
XLC

-

Industrials

HDV
1.3%
XLC

-

Basic Materials

HDV
1.1%
XLC

-

Communication Services

HDV
0.1%
XLC
95.1%

Real Estate

HDV

-

XLC

-

Compare stocks, funds, or ETFs

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iShares Core High Dividend ETF

Communication Services Select Sector SPDR Fund

Often compared with HDV:
HDV vs. SCHDHDV vs. VYMHDV vs. SPYDHDV vs. DGROHDV vs. DVYHDV vs. VIGHDV vs. SPY
Often compared with XLC:
XLC vs. VOXXLC vs. SPYXLC vs. FCOMXLC vs. XLFXLC vs. XTLXLC vs. IXPXLC vs. VOO

Return for Risk

HDV vs. XLC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HDV
HDV Risk / Return Rank: 8080
Overall Rank
HDV Sharpe Ratio Rank: 8181
Sharpe Ratio Rank
HDV Sortino Ratio Rank: 8585
Sortino Ratio Rank
HDV Omega Ratio Rank: 7676
Omega Ratio Rank
HDV Calmar Ratio Rank: 8686
Calmar Ratio Rank
HDV Martin Ratio Rank: 7272
Martin Ratio Rank
XLC
XLC Risk / Return Rank: 2222
Overall Rank
XLC Sharpe Ratio Rank: 2222
Sharpe Ratio Rank
XLC Sortino Ratio Rank: 2222
Sortino Ratio Rank
XLC Omega Ratio Rank: 2020
Omega Ratio Rank
XLC Calmar Ratio Rank: 2222
Calmar Ratio Rank
XLC Martin Ratio Rank: 2424
Martin Ratio Rank
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.

HDV vs. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) 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.

HDVXLCDifference
Sharpe ratioReturn per unit of total volatility
2.23
0.69

+1.54

Sortino ratioReturn per unit of downside risk
3.29
1.08

+2.21

Omega ratioGain probability vs. loss probability

1.38

1.12

+0.26

Calmar ratioReturn relative to maximum drawdown

4.18

0.86

+3.32

Martin ratioReturn relative to average drawdown

11.59

2.73

+8.86

HDV vs. XLC - Sharpe Ratio Comparison

The current HDV Sharpe Ratio is 2.23, which is higher than the XLC Sharpe Ratio of 0.69. The chart below compares the historical Sharpe Ratios of HDV 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.

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Drawdowns

HDV vs. XLC - Drawdown Comparison

The maximum HDV drawdown since its inception was -37.04%, smaller than the maximum XLC drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for HDV and XLC.

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Drawdown Indicators

HDVXLCDifference

Max Drawdown

Largest peak-to-trough decline

-37.04%

-46.65%

+9.61%

Max Drawdown (1Y)

Largest decline over 1 year

-5.18%

-10.57%

+5.39%

Max Drawdown (3Y)

Largest decline over 3 years

-10.49%

-17.97%

+7.48%

Max Drawdown (5Y)

Largest decline over 5 years

-15.42%

-46.65%

+31.23%

Max Drawdown (10Y)

Largest decline over 10 years

-37.04%

—

—

Current Drawdown

Current decline from peak

-0.29%

-6.72%

+6.43%

Average Drawdown

Average peak-to-trough decline

-3.08%

-10.58%

+7.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.87%

3.33%

-1.46%

Volatility

HDV vs. XLC - Volatility Comparison

The current volatility for iShares Core High Dividend ETF (HDV) is 3.10%, while Communication Services Select Sector SPDR Fund (XLC) has a volatility of 3.57%. This indicates that HDV experiences smaller price fluctuations and is considered to be less risky than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

HDVXLCDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.10%

3.57%

-0.47%

Volatility (6M)

Calculated over the trailing 6-month period

7.44%

9.65%

-2.21%

Volatility (1Y)

Calculated over the trailing 1-year period

9.73%

13.28%

-3.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

12.83%

20.68%

-7.85%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.73%

22.17%

-6.44%

HDV vs. XLC - Expense Ratio Comparison

HDV 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

HDV vs. XLC - Dividend Comparison

HDV's dividend yield for the trailing twelve months is around 2.84%, more than XLC's 1.25% yield.

PositionTTM20252024202320222021202020192018201720162015
HDV
iShares Core High Dividend ETF		2.84%3.22%3.67%3.82%3.56%3.47%4.07%3.27%3.67%3.27%3.28%3.92%
XLC
Communication Services Select Sector SPDR Fund		1.25%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

HDV and XLC have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLC has higher volatility (3.57%) compared to HDV (3.10%). In terms of maximum drawdown, HDV dropped -37.04% vs XLC's -46.65%.

On 5-year performance, HDV leads with 10.91% vs 8.03% for XLC. On fees, HDV is cheaper at 0.08% per year. On volatility, HDV has been the lower-risk option at 3.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, HDV has performed better with a 10.91% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

HDV has the higher dividend yield at 2.84%, compared with 1.25% for XLC.

HDV is categorized as Dividend, while XLC is Communications Equities. HDV tracks Morningstar Dividend Yield Focus Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.08% for HDV and 0.13% for XLC.

HDV currently has the higher Sharpe Ratio (2.23 vs 0.69), 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.

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