IEZ vs. XOP

Last updated Jun 3, 2026

IEZ (iShares U.S. Oil Equipment & Services ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both Energy Equities funds - IEZ tracks the Dow Jones U.S. Select Oil Equipment & Services Index while XOP tracks the S&P Oil & Gas Exploration & Production Select Industry. Both are passively managed. Over the past 10 years, IEZ returned -0.14%/yr vs 3.66%/yr for XOP. Their correlation of 0.86 suggests significant overlap in exposure. IEZ charges 0.42%/yr vs 0.35%/yr for XOP.

Performance

IEZ vs. XOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Oil Equipment & Services ETF (IEZ) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IEZ achieves a 47.79% return, which is significantly higher than XOP's 34.27% return. Over the past 10 years, IEZ has underperformed XOP with an annualized return of -0.14%, while XOP has yielded a comparatively higher 3.66% annualized return.

IEZ

• 1D: 2.36%
• 1M: -3.90%
• YTD: 47.79%
• 6M: 47.74%
• 1Y: 90.56%
• 3Y*: 19.16%
• 5Y*: 14.05%
• 10Y*: -0.14%

XOP

• 1D: 0.58%
• 1M: -4.43%
• YTD: 34.27%
• 6M: 28.35%
• 1Y: 42.75%
• 3Y*: 13.59%
• 5Y*: 14.54%
• 10Y*: 3.66%

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

IEZ vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEZ iShares U.S. Oil Equipment & Services ETF	47.79%	7.51%	-8.15%	4.43%	65.73%	15.98%	-42.98%	1.82%	-42.47%	-18.18%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	34.27%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%

Correlation

The correlation between IEZ and XOP is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.86

Over the past year, the correlation between IEZ and XOP has dropped to 0.63 - well below their long-term average of 0.86, suggesting their price drivers have been diverging.

IEZ vs. XOP - Sectors Allocation Comparison

Sectors	IEZ	XOP
Energy	98.8%	97.2%
Utilities	1.0%	-
Industrials	0.6%	-
Basic Materials	-	2.9%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

IEZ vs. XOP — Risk / Return Rank

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

IEZ

IEZ Risk / Return Rank: 89
IEZ Sharpe Ratio Rank: 91
IEZ Sortino Ratio Rank: 85
IEZ Omega Ratio Rank: 80
IEZ Calmar Ratio Rank: 96
IEZ Martin Ratio Rank: 93

XOP

XOP Risk / Return Rank: 45
XOP Sharpe Ratio Rank: 44
XOP Sortino Ratio Rank: 40
XOP Omega Ratio Rank: 38
XOP Calmar Ratio Rank: 59
XOP Martin Ratio Rank: 46

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.

IEZ vs. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Oil Equipment & Services ETF (IEZ) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). 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.

	IEZ	XOP	Difference
Sharpe ratio Return per unit of total volatility	3.18	1.55	+1.64
Sortino ratio Return per unit of downside risk	3.88	2.03	+1.85
Omega ratio Gain probability vs. loss probability	1.48	1.25	+0.23
Calmar ratio Return relative to maximum drawdown	9.02	2.95	+6.07
Martin ratio Return relative to average drawdown	24.71	7.60	+17.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEZ vs. XOP - Sharpe Ratio Comparison

The current IEZ Sharpe Ratio is 3.18, which is higher than the XOP Sharpe Ratio of 1.55. The chart below compares the historical Sharpe Ratios of IEZ and XOP, 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

	IEZ	XOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.18	1.55	+1.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.43	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.00	0.09	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	-0.04	0.06	-0.10

Drawdowns

IEZ vs. XOP - Drawdown Comparison

The maximum IEZ drawdown since its inception was -92.52%, roughly equal to the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for IEZ and XOP.

Drawdown Indicators

	IEZ	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-92.52%	-90.27%	-2.25%
Max Drawdown (1Y) Largest decline over 1 year	-10.32%	-15.14%	+4.82%
Max Drawdown (3Y) Largest decline over 3 years	-40.25%	-34.98%	-5.27%
Max Drawdown (5Y) Largest decline over 5 years	-40.25%	-34.98%	-5.27%
Max Drawdown (10Y) Largest decline over 10 years	-88.29%	-82.61%	-5.68%
Current Drawdown Current decline from peak	-51.22%	-37.24%	-13.98%
Average Drawdown Average peak-to-trough decline	-48.26%	-42.59%	-5.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.76%	5.87%	-2.11%

Volatility

IEZ vs. XOP - Volatility Comparison

The current volatility for iShares U.S. Oil Equipment & Services ETF (IEZ) is 7.95%, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a volatility of 10.26%. This indicates that IEZ experiences smaller price fluctuations and is considered to be less risky than XOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEZ	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.95%	10.26%	-2.31%
Volatility (6M) Calculated over the trailing 6-month period	20.12%	21.61%	-1.49%
Volatility (1Y) Calculated over the trailing 1-year period	28.64%	27.80%	+0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.35%	33.88%	+2.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.57%	40.29%	+1.28%

IEZ vs. XOP - Expense Ratio Comparison

IEZ has a 0.42% expense ratio, which is higher than XOP's 0.35% expense ratio.

Dividends

IEZ vs. XOP - Dividend Comparison

IEZ's dividend yield for the trailing twelve months is around 1.18%, less than XOP's 1.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEZ iShares U.S. Oil Equipment & Services ETF	1.18%	1.87%	1.76%	0.97%	0.65%	1.20%	2.07%	2.28%	1.81%	3.42%	0.91%	2.40%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	1.93%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both IEZ and XOP in my portfolio?

IEZ and XOP have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IEZ or XOP?

XOP has higher volatility (10.26%) compared to IEZ (7.95%). In terms of maximum drawdown, IEZ dropped -92.52% vs XOP's -90.27%.

Which ETF is better, IEZ or XOP?

On 10-year performance, XOP leads with 3.66% vs -0.14% for IEZ. On fees, XOP is cheaper at 0.35% per year. On volatility, IEZ has been the lower-risk option at 7.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEZ or XOP?

Over the 10-year period, XOP has performed better with a 3.66% return vs -0.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEZ or XOP?

XOP is cheaper with a 0.35% expense ratio, compared with 0.42% for IEZ.

Which ETF pays a higher dividend yield, IEZ or XOP?

XOP has the higher dividend yield at 1.93%, compared with 1.18% for IEZ.

What is the main difference between IEZ and XOP?

IEZ tracks Dow Jones U.S. Select Oil Equipment & Services Index, while XOP tracks S&P Oil & Gas Exploration & Production Select Industry. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IEZ and 0.35% for XOP.

Which has better risk-adjusted returns?

IEZ currently has the higher Sharpe Ratio (3.18 vs 1.55), 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.