IHI vs. XLY

Last updated Jun 9, 2026

IHI (iShares U.S. Medical Devices ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IHI is a Health & Biotech Equities fund tracking the Dow Jones U.S. Select Medical Equipment Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, IHI returned 8.79%/yr vs 12.57%/yr for XLY. A 0.66 correlation means they provide meaningful diversification when combined. IHI charges 0.43%/yr vs 0.13%/yr for XLY.

Performance

IHI vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Medical Devices ETF (IHI) and Consumer Discretionary Select Sector SPDR Fund (XLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IHI achieves a -19.71% return, which is significantly lower than XLY's -3.17% return. Over the past 10 years, IHI has underperformed XLY with an annualized return of 8.79%, while XLY has yielded a comparatively higher 12.57% annualized return.

IHI

• 1D: -0.44%
• 1M: 1.73%
• YTD: -19.71%
• 6M: -19.80%
• 1Y: -19.39%
• 3Y*: -1.88%
• 5Y*: -2.08%
• 10Y*: 8.79%

XLY

• 1D: 0.46%
• 1M: -4.00%
• YTD: -3.17%
• 6M: -1.81%
• 1Y: 9.63%
• 3Y*: 13.63%
• 5Y*: 6.99%
• 10Y*: 12.57%

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

IHI vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHI iShares U.S. Medical Devices ETF	-19.71%	6.88%	8.62%	3.24%	-19.80%	21.03%	24.17%	32.75%	15.45%	30.81%
XLY Consumer Discretionary Select Sector SPDR Fund	-3.17%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between IHI and XLY is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since May 8, 2006	0.66

Over the past year, the correlation between IHI and XLY has dropped to 0.38 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.

IHI vs. XLY - Sectors Allocation Comparison

Sectors	IHI	XLY
Healthcare	100.0%	-
Industrials	0.2%	0.1%
Basic Materials	-	-
Communication Services	-	1.3%
Consumer Cyclical	-	97.6%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Technology	-	0.9%
Utilities	-	-

Return for Risk

IHI vs. XLY — Risk / Return Rank

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

IHI

IHI Risk / Return Rank: 1
IHI Sharpe Ratio Rank: 1
IHI Sortino Ratio Rank: 1
IHI Omega Ratio Rank: 1
IHI Calmar Ratio Rank: 3
IHI Martin Ratio Rank: 0

XLY

XLY Risk / Return Rank: 18
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 18
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 18
XLY Martin Ratio Rank: 19

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.

IHI vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Medical Devices ETF (IHI) and Consumer Discretionary Select Sector SPDR Fund (XLY). 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.

	IHI	XLY	Difference
Sharpe ratio: Return per unit of total volatility	-1.15	0.54	-1.68
Sortino ratio: Return per unit of downside risk	-1.60	0.87	-2.47
Omega ratio: Gain probability vs. loss probability	0.82	1.10	-0.28
Calmar ratio: Return relative to maximum drawdown	-0.75	0.65	-1.39
Martin ratio: Return relative to average drawdown	-1.85	2.01	-3.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IHI vs. XLY - Sharpe Ratio Comparison

The current IHI Sharpe Ratio is -1.15, which is lower than the XLY Sharpe Ratio of 0.54. The chart below compares the historical Sharpe Ratios of IHI and XLY, 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

	IHI	XLY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.15	0.54	-1.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.11	0.30	-0.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.57	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.42	+0.05

Drawdowns

IHI vs. XLY - Drawdown Comparison

The maximum IHI drawdown since its inception was -49.65%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IHI and XLY.

Drawdown Indicators

	IHI	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-49.65%	-59.05%	+9.40%
Max Drawdown (1Y) Largest decline over 1 year	-26.11%	-14.98%	-11.13%
Max Drawdown (3Y) Largest decline over 3 years	-26.64%	-26.01%	-0.63%
Max Drawdown (5Y) Largest decline over 5 years	-33.12%	-39.67%	+6.55%
Max Drawdown (10Y) Largest decline over 10 years	-33.25%	-39.67%	+6.42%
Current Drawdown Current decline from peak	-24.19%	-7.15%	-17.04%
Average Drawdown Average peak-to-trough decline	-8.33%	-9.56%	+1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.48%	4.80%	+5.68%

Volatility

IHI vs. XLY - Volatility Comparison

iShares U.S. Medical Devices ETF (IHI) has a higher volatility of 7.01% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 5.32%. This indicates that IHI's price experiences larger fluctuations and is considered to be riskier than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IHI	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.01%	5.32%	+1.69%
Volatility (6M) Calculated over the trailing 6-month period	13.06%	13.22%	-0.16%
Volatility (1Y) Calculated over the trailing 1-year period	17.00%	18.09%	-1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.99%	23.80%	-4.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.80%	22.06%	-2.26%

IHI vs. XLY - Expense Ratio Comparison

IHI has a 0.43% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

IHI vs. XLY - Dividend Comparison

IHI's dividend yield for the trailing twelve months is around 0.45%, less than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHI iShares U.S. Medical Devices ETF	0.45%	0.34%	0.46%	0.53%	0.45%	0.25%	0.25%	0.33%	0.26%	0.37%	0.55%	1.28%
XLY Consumer Discretionary Select Sector SPDR Fund	0.77%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%

Frequently Asked Questions

Can I hold both IHI and XLY in my portfolio?

IHI and XLY have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHI or XLY?

IHI has higher volatility (7.01%) compared to XLY (5.32%). In terms of maximum drawdown, IHI dropped -49.65% vs XLY's -59.05%.

Which ETF is better, IHI or XLY?

On 10-year performance, XLY leads with 12.57% vs 8.79% for IHI. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 5.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHI or XLY?

Over the 10-year period, XLY has performed better with a 12.57% return vs 8.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHI or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.43% for IHI.

Which ETF pays a higher dividend yield, IHI or XLY?

XLY has the higher dividend yield at 0.77%, compared with 0.45% for IHI.

What is the main difference between IHI and XLY?

IHI is categorized as Health & Biotech Equities, while XLY is Consumer Discretionary Equities. IHI tracks Dow Jones U.S. Select Medical Equipment Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.43% for IHI and 0.13% for XLY.

Which has better risk-adjusted returns?

XLY currently has the higher Sharpe Ratio (0.54 vs -1.15), 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.