HDV vs. XLI

Last updated Jun 14, 2026

HDV (iShares Core High Dividend ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, HDV returned 9.47%/yr vs 14.15%/yr for XLI. A 0.72 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

HDV vs. XLI - Performance Comparison

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

Returns By Period

In the year-to-date period, HDV achieves a 15.30% return, which is significantly higher than XLI's 13.90% return. Over the past 10 years, HDV has underperformed XLI with an annualized return of 9.47%, while XLI has yielded a comparatively higher 14.15% annualized 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%

XLI

• 1D: 0.59%
• 1M: 0.96%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

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

HDV vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDV iShares Core High Dividend ETF	15.30%	11.90%	14.16%	1.72%	7.05%	19.45%	-6.48%	20.22%	-3.01%	13.40%
XLI Industrial Select Sector SPDR Fund	13.90%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between HDV and XLI is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011	0.72

Over the past year, the correlation between HDV and XLI has dropped to 0.36 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

HDV vs. XLI - Sectors Allocation Comparison

Sectors	HDV	XLI
Consumer Defensive	24.2%	-
Energy	21.0%	-
Healthcare	17.0%	-
Financial Services	10.8%	-
Technology	9.7%	3.8%
Utilities	8.9%	4.8%
Consumer Cyclical	6.0%	0.5%
Industrials	1.3%	90.9%
Basic Materials	1.1%	-
Communication Services	0.1%	-
Real Estate	-	-

Return for Risk

HDV vs. XLI — Risk / Return Rank

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

HDV

HDV Risk / Return Rank: 80
HDV Sharpe Ratio Rank: 81
HDV Sortino Ratio Rank: 85
HDV Omega Ratio Rank: 76
HDV Calmar Ratio Rank: 86
HDV Martin Ratio Rank: 72

XLI

XLI Risk / Return Rank: 48
XLI Sharpe Ratio Rank: 49
XLI Sortino Ratio Rank: 50
XLI Omega Ratio Rank: 46
XLI Calmar Ratio Rank: 45
XLI Martin Ratio Rank: 52

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. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) and Industrial Select Sector SPDR Fund (XLI). 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.

	HDV	XLI	Difference
Sharpe ratio: Return per unit of total volatility	2.23	1.50	+0.73
Sortino ratio: Return per unit of downside risk	3.29	2.17	+1.12
Omega ratio: Gain probability vs. loss probability	1.38	1.26	+0.12
Calmar ratio: Return relative to maximum drawdown	4.18	1.98	+2.20
Martin ratio: Return relative to average drawdown	11.59	7.82	+3.77

HDV vs. XLI - Sharpe Ratio Comparison

The current HDV Sharpe Ratio is 2.23, which is higher than the XLI Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of HDV and XLI, 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

HDV vs. XLI - Drawdown Comparison

The maximum HDV drawdown since its inception was -37.04%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for HDV and XLI.

Drawdown Indicators

	HDV	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-37.04%	-62.26%	+25.22%
Max Drawdown (1Y) Largest decline over 1 year	-5.18%	-12.21%	+7.03%
Max Drawdown (3Y) Largest decline over 3 years	-10.49%	-18.49%	+8.00%
Max Drawdown (5Y) Largest decline over 5 years	-15.42%	-21.64%	+6.22%
Max Drawdown (10Y) Largest decline over 10 years	-37.04%	-42.33%	+5.29%
Current Drawdown Current decline from peak	-0.29%	-1.24%	+0.95%
Average Drawdown Average peak-to-trough decline	-3.08%	-9.20%	+6.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.87%	3.09%	-1.22%

Volatility

HDV vs. XLI - Volatility Comparison

The current volatility for iShares Core High Dividend ETF (HDV) is 3.10%, while Industrial Select Sector SPDR Fund (XLI) has a volatility of 6.22%. This indicates that HDV experiences smaller price fluctuations and is considered to be less risky than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDV	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.10%	6.22%	-3.12%
Volatility (6M) Calculated over the trailing 6-month period	7.44%	13.59%	-6.15%
Volatility (1Y) Calculated over the trailing 1-year period	9.73%	16.17%	-6.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.83%	17.55%	-4.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	20.04%	-4.31%

HDV vs. XLI - Expense Ratio Comparison

Both HDV and XLI have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

HDV vs. XLI - Dividend Comparison

HDV's dividend yield for the trailing twelve months is around 2.84%, more than XLI's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both HDV and XLI in my portfolio?

HDV and XLI have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDV or XLI?

XLI has higher volatility (6.22%) compared to HDV (3.10%). In terms of maximum drawdown, HDV dropped -37.04% vs XLI's -62.26%.

Which ETF is better, HDV or XLI?

On 10-year performance, XLI leads with 14.15% vs 9.47% for HDV. Both ETFs have the same 0.08% expense ratio. 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.

Which ETF has performed better, HDV or XLI?

Over the 10-year period, XLI has performed better with a 14.15% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDV or XLI?

HDV and XLI have the same expense ratio: 0.08% per year.

Which ETF pays a higher dividend yield, HDV or XLI?

HDV has the higher dividend yield at 2.84%, compared with 1.16% for XLI.

What is the main difference between HDV and XLI?

HDV is categorized as Dividend, while XLI is Industrials Equities. HDV tracks Morningstar Dividend Yield Focus Index, while XLI tracks Industrial Select Sector Index. They also come from different issuers: iShares and State Street.

Which has better risk-adjusted returns?

HDV currently has the higher Sharpe Ratio (2.23 vs 1.50), 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.