HVAC vs. XLI

Last updated Jun 4, 2026

HVAC (AdvisorShares HVAC and Industrials ETF) and XLI (Industrial Select Sector SPDR Fund) are both Industrials Equities funds. HVAC is actively managed, while XLI is passively managed. Over the past year, HVAC returned 59.65% vs 22.72% for XLI. Their correlation of 0.83 suggests significant overlap in exposure. HVAC charges 1.00%/yr vs 0.13%/yr for XLI.

Performance

HVAC vs. XLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AdvisorShares HVAC and Industrials ETF (HVAC) 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, HVAC achieves a 36.48% return, which is significantly higher than XLI's 12.52% return.

HVAC

• 1D: 1.91%
• 1M: 6.24%
• YTD: 36.48%
• 6M: 32.88%
• 1Y: 59.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —

XLI

• 1D: -0.08%
• 1M: 1.80%
• YTD: 12.52%
• 6M: 13.57%
• 1Y: 22.72%
• 3Y*: 21.72%
• 5Y*: 12.26%
• 10Y*: 13.99%

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

HVAC vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025
HVAC AdvisorShares HVAC and Industrials ETF	36.48%	24.04%
XLI Industrial Select Sector SPDR Fund	12.52%	14.76%

Correlation

The correlation between HVAC and XLI is 0.81, 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	0.81
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.83

The correlation between HVAC and XLI has been stable across timeframes, ranging from 0.81 to 0.83 - a consistent structural relationship.

HVAC vs. XLI - Sectors Allocation Comparison

Sectors	HVAC	XLI
Industrials	67.0%	90.3%
Technology	16.9%	3.8%
Utilities	7.4%	5.2%
Consumer Cyclical	4.5%	0.5%
Real Estate	2.8%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-

Return for Risk

HVAC vs. XLI — Risk / Return Rank

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

HVAC

HVAC Risk / Return Rank: 68
HVAC Sharpe Ratio Rank: 66
HVAC Sortino Ratio Rank: 59
HVAC Omega Ratio Rank: 60
HVAC Calmar Ratio Rank: 79
HVAC Martin Ratio Rank: 75

XLI

XLI Risk / Return Rank: 41
XLI Sharpe Ratio Rank: 41
XLI Sortino Ratio Rank: 43
XLI Omega Ratio Rank: 38
XLI Calmar Ratio Rank: 37
XLI Martin Ratio Rank: 45

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.

HVAC vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AdvisorShares HVAC and Industrials ETF (HVAC) 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.

	HVAC	XLI	Difference
Sharpe ratio: Return per unit of total volatility	2.19	1.49	+0.70
Sortino ratio: Return per unit of downside risk	2.75	2.18	+0.57
Omega ratio: Gain probability vs. loss probability	1.36	1.26	+0.10
Calmar ratio: Return relative to maximum drawdown	4.04	1.87	+2.17
Martin ratio: Return relative to average drawdown	14.29	7.41	+6.88
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HVAC vs. XLI - Sharpe Ratio Comparison

The current HVAC Sharpe Ratio is 2.19, which is higher than the XLI Sharpe Ratio of 1.49. The chart below compares the historical Sharpe Ratios of HVAC 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.

Sharpe Ratios by Period

	HVAC	XLI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.19	1.49	+0.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.71	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.70	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.67	0.45	+1.21

Drawdowns

HVAC vs. XLI - Drawdown Comparison

The maximum HVAC drawdown since its inception was -21.22%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for HVAC and XLI.

Drawdown Indicators

	HVAC	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-21.22%	-62.26%	+41.04%
Max Drawdown (1Y) Largest decline over 1 year	-14.83%	-12.21%	-2.62%
Max Drawdown (3Y) Largest decline over 3 years	—	-18.49%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-21.64%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.33%	—
Current Drawdown Current decline from peak	-0.60%	-2.44%	+1.84%
Average Drawdown Average peak-to-trough decline	-3.95%	-9.21%	+5.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.19%	3.07%	+1.12%

Volatility

HVAC vs. XLI - Volatility Comparison

AdvisorShares HVAC and Industrials ETF (HVAC) has a higher volatility of 11.09% compared to Industrial Select Sector SPDR Fund (XLI) at 4.80%. This indicates that HVAC's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HVAC	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.09%	4.80%	+6.29%
Volatility (6M) Calculated over the trailing 6-month period	22.96%	12.79%	+10.17%
Volatility (1Y) Calculated over the trailing 1-year period	27.43%	15.38%	+12.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.39%	17.42%	+11.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.39%	19.98%	+9.41%

HVAC vs. XLI - Expense Ratio Comparison

HVAC has a 1.00% expense ratio, which is higher than XLI's 0.13% expense ratio.

Dividends

HVAC vs. XLI - Dividend Comparison

HVAC's dividend yield for the trailing twelve months is around 0.14%, less than XLI's 1.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HVAC AdvisorShares HVAC and Industrials ETF	0.14%	0.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLI Industrial Select Sector SPDR Fund	1.18%	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 HVAC and XLI in my portfolio?

HVAC and XLI have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HVAC or XLI?

HVAC has higher volatility (11.09%) compared to XLI (4.80%). In terms of maximum drawdown, HVAC dropped -21.22% vs XLI's -62.26%.

Which ETF is better, HVAC or XLI?

On 1-year performance, HVAC leads with 59.65% vs 22.72% for XLI. On fees, XLI is cheaper at 0.13% per year. On volatility, XLI has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HVAC or XLI?

Over the 1-year period, HVAC has performed better with a 59.65% return vs 22.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HVAC or XLI?

XLI is cheaper with a 0.13% expense ratio, compared with 1.00% for HVAC.

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

XLI has the higher dividend yield at 1.18%, compared with 0.14% for HVAC.

What is the main difference between HVAC and XLI?

They also come from different issuers: AdvisorShares and State Street. Their fees differ too: 1.00% for HVAC and 0.13% for XLI.

Which has better risk-adjusted returns?

HVAC currently has the higher Sharpe Ratio (2.19 vs 1.49), 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.