IGM vs. XLC

Last updated Jun 16, 2026

IGM (iShares Expanded Tech Sector ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - IGM is a Technology Equities fund tracking the S&P North American Expanded Technology Sector 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, IGM returned 20.96%/yr vs 8.31%/yr for XLC. Their correlation of 0.81 suggests significant overlap in exposure. IGM charges 0.39%/yr vs 0.13%/yr for XLC.

Performance

IGM vs. XLC - Performance Comparison

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

Returns By Period

In the year-to-date period, IGM achieves a 27.92% return, which is significantly higher than XLC's -4.39% return.

IGM

• 1D: 3.64%
• 1M: 7.10%
• YTD: 27.92%
• 6M: 29.29%
• 1Y: 56.16%
• 3Y*: 36.48%
• 5Y*: 20.96%
• 10Y*: 25.12%

XLC

• 1D: 0.48%
• 1M: -3.35%
• YTD: -4.39%
• 6M: -3.14%
• 1Y: 10.72%
• 3Y*: 21.42%
• 5Y*: 8.31%
• 10Y*: —

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

IGM vs. XLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
IGM iShares Expanded Tech Sector ETF	27.92%	26.76%	36.99%	60.68%	-35.83%	25.72%	45.11%	41.81%	-14.16%
XLC Communication Services Select Sector SPDR Fund	-4.39%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.45%

Correlation

The correlation between IGM and XLC is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018	0.81

Over the past year, the correlation between IGM and XLC has dropped to 0.48 - well below their long-term average of 0.81, suggesting their price drivers have been diverging.

IGM vs. XLC - Sectors Allocation Comparison

Sectors	IGM	XLC
Technology	85.2%	4.7%
Communication Services	13.9%	95.1%
Industrials	0.3%	-
Financial Services	0.3%	-
Energy	0.2%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IGM vs. XLC — Risk / Return Rank

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

IGM

IGM Risk / Return Rank: 78
IGM Sharpe Ratio Rank: 87
IGM Sortino Ratio Rank: 79
IGM Omega Ratio Rank: 80
IGM Calmar Ratio Rank: 74
IGM Martin Ratio Rank: 70

XLC

XLC Risk / Return Rank: 24
XLC Sharpe Ratio Rank: 25
XLC Sortino Ratio Rank: 25
XLC Omega Ratio Rank: 23
XLC Calmar Ratio Rank: 24
XLC Martin Ratio Rank: 26

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.

IGM vs. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech Sector ETF (IGM) 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.

	IGM	XLC	Difference
Sharpe ratio: Return per unit of total volatility	2.54	0.81	+1.73
Sortino ratio: Return per unit of downside risk	3.13	1.25	+1.88
Omega ratio: Gain probability vs. loss probability	1.42	1.14	+0.28
Calmar ratio: Return relative to maximum drawdown	3.43	1.02	+2.41
Martin ratio: Return relative to average drawdown	11.62	3.21	+8.42

IGM vs. XLC - Sharpe Ratio Comparison

The current IGM Sharpe Ratio is 2.54, which is higher than the XLC Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of IGM 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.

Drawdowns

IGM vs. XLC - Drawdown Comparison

The maximum IGM drawdown since its inception was -65.59%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for IGM and XLC.

Drawdown Indicators

	IGM	XLC	Difference
Max Drawdown Largest peak-to-trough decline	-65.59%	-46.65%	-18.94%
Max Drawdown (1Y) Largest decline over 1 year	-16.44%	-10.57%	-5.87%
Max Drawdown (3Y) Largest decline over 3 years	-26.39%	-17.97%	-8.42%
Max Drawdown (5Y) Largest decline over 5 years	-40.68%	-46.65%	+5.97%
Max Drawdown (10Y) Largest decline over 10 years	-40.68%	—	—
Current Drawdown Current decline from peak	-3.41%	-6.27%	+2.86%
Average Drawdown Average peak-to-trough decline	-15.22%	-10.58%	-4.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.85%	3.35%	+1.50%

Volatility

IGM vs. XLC - Volatility Comparison

iShares Expanded Tech Sector ETF (IGM) has a higher volatility of 10.54% compared to Communication Services Select Sector SPDR Fund (XLC) at 3.61%. This indicates that IGM's price experiences larger fluctuations and is considered to be riskier than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IGM	XLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.54%	3.61%	+6.93%
Volatility (6M) Calculated over the trailing 6-month period	18.42%	9.66%	+8.76%
Volatility (1Y) Calculated over the trailing 1-year period	22.24%	13.25%	+8.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.97%	20.68%	+5.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.70%	22.17%	+2.53%

IGM vs. XLC - Expense Ratio Comparison

IGM has a 0.39% expense ratio, which is higher than XLC's 0.13% expense ratio.

Dividends

IGM vs. XLC - Dividend Comparison

IGM's dividend yield for the trailing twelve months is around 0.17%, less than XLC's 1.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGM iShares Expanded Tech Sector ETF	0.17%	0.17%	0.22%	0.33%	0.66%	0.16%	0.32%	0.50%	0.57%	0.57%	0.90%	0.79%
XLC Communication Services Select Sector SPDR Fund	1.24%	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

Can I hold both IGM and XLC in my portfolio?

IGM and XLC have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGM or XLC?

IGM has higher volatility (10.54%) compared to XLC (3.61%). In terms of maximum drawdown, IGM dropped -65.59% vs XLC's -46.65%.

Which ETF is better, IGM or XLC?

On 5-year performance, IGM leads with 20.96% vs 8.31% for XLC. On fees, XLC is cheaper at 0.13% per year. On volatility, XLC has been the lower-risk option at 3.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGM or XLC?

Over the 5-year period, IGM has performed better with a 20.96% return vs 8.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGM or XLC?

XLC is cheaper with a 0.13% expense ratio, compared with 0.39% for IGM.

Which ETF pays a higher dividend yield, IGM or XLC?

XLC has the higher dividend yield at 1.24%, compared with 0.17% for IGM.

What is the main difference between IGM and XLC?

IGM is categorized as Technology Equities, while XLC is Communications Equities. IGM tracks S&P North American Expanded Technology Sector 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: 0.39% for IGM and 0.13% for XLC.

Which has better risk-adjusted returns?

IGM currently has the higher Sharpe Ratio (2.54 vs 0.81), 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.