IPAY vs. XLY

Last updated Jun 24, 2026

IPAY (ETFMG Prime Mobile Payments ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IPAY is a Technology Equities fund tracking the Prime Mobile Payments 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, IPAY returned 6.77%/yr vs 12.73%/yr for XLY. A 0.73 correlation means they provide meaningful diversification when combined. IPAY charges 0.75%/yr vs 0.13%/yr for XLY.

Performance

IPAY vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETFMG Prime Mobile Payments ETF (IPAY) 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, IPAY achieves a -16.12% return, which is significantly lower than XLY's -4.35% return. Over the past 10 years, IPAY has underperformed XLY with an annualized return of 6.77%, while XLY has yielded a comparatively higher 12.73% annualized return.

IPAY

• 1D: -0.55%
• 1M: -3.52%
• YTD: -16.12%
• 6M: -17.27%
• 1Y: -23.67%
• 3Y*: 2.21%
• 5Y*: -9.21%
• 10Y*: 6.77%

XLY

• 1D: -1.03%
• 1M: -4.36%
• YTD: -4.35%
• 6M: -6.51%
• 1Y: 6.94%
• 3Y*: 12.11%
• 5Y*: 6.04%
• 10Y*: 12.73%

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

IPAY vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IPAY ETFMG Prime Mobile Payments ETF	-16.12%	-9.55%	25.88%	18.21%	-32.38%	-12.72%	34.22%	41.80%	0.17%	36.34%
XLY Consumer Discretionary Select Sector SPDR Fund	-4.35%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between IPAY and XLY is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jul 16, 2015	0.73

The correlation between IPAY and XLY shifts across timeframes, from 0.64 (1 year) to 0.75 (5 years), reflecting how their relationship changes across market environments.

IPAY vs. XLY - Sectors Allocation Comparison

Sectors	IPAY	XLY
Technology	53.9%	0.9%
Financial Services	41.8%	-
Industrials	4.3%	0.1%
Basic Materials	-	-
Communication Services	-	1.5%
Consumer Cyclical	-	97.3%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IPAY vs. XLY — Risk / Return Rank

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

IPAY

IPAY Risk / Return Rank: 2
IPAY Sharpe Ratio Rank: 1
IPAY Sortino Ratio Rank: 2
IPAY Omega Ratio Rank: 2
IPAY Calmar Ratio Rank: 2
IPAY Martin Ratio Rank: 2

XLY

XLY Risk / Return Rank: 14
XLY Sharpe Ratio Rank: 14
XLY Sortino Ratio Rank: 14
XLY Omega Ratio Rank: 13
XLY Calmar Ratio Rank: 14
XLY Martin Ratio Rank: 15

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.

IPAY vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETFMG Prime Mobile Payments ETF (IPAY) 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.

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.

	IPAY	XLY	Difference
Sharpe ratio: Return per unit of total volatility	-1.00	0.38	-1.37
Sortino ratio: Return per unit of downside risk	-1.28	0.66	-1.94
Omega ratio: Gain probability vs. loss probability	0.84	1.08	-0.23
Calmar ratio: Return relative to maximum drawdown	-0.76	0.47	-1.22
Martin ratio: Return relative to average drawdown	-1.36	1.40	-2.76

IPAY vs. XLY - Sharpe Ratio Comparison

The current IPAY Sharpe Ratio is -1.00, which is lower than the XLY Sharpe Ratio of 0.38. The chart below compares the historical Sharpe Ratios of IPAY 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.

Drawdowns

IPAY vs. XLY - Drawdown Comparison

The maximum IPAY drawdown since its inception was -51.75%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IPAY and XLY.

Drawdown Indicators

	IPAY	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-51.75%	-59.05%	+7.30%
Max Drawdown (1Y) Largest decline over 1 year	-31.31%	-14.98%	-16.33%
Max Drawdown (3Y) Largest decline over 3 years	-32.74%	-26.01%	-6.73%
Max Drawdown (5Y) Largest decline over 5 years	-51.49%	-39.67%	-11.82%
Max Drawdown (10Y) Largest decline over 10 years	-51.75%	-39.67%	-12.08%
Current Drawdown Current decline from peak	-39.27%	-8.28%	-30.99%
Average Drawdown Average peak-to-trough decline	-16.77%	-9.55%	-7.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.46%	4.97%	+12.49%

Volatility

IPAY vs. XLY - Volatility Comparison

ETFMG Prime Mobile Payments ETF (IPAY) has a higher volatility of 7.88% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 6.48%. This indicates that IPAY'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

	IPAY	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.88%	6.48%	+1.40%
Volatility (6M) Calculated over the trailing 6-month period	18.78%	13.82%	+4.96%
Volatility (1Y) Calculated over the trailing 1-year period	23.92%	18.55%	+5.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.15%	23.91%	+2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.39%	22.09%	+3.30%

IPAY vs. XLY - Expense Ratio Comparison

IPAY has a 0.75% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

IPAY vs. XLY - Dividend Comparison

IPAY's dividend yield for the trailing twelve months is around 0.94%, more than XLY's 0.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IPAY ETFMG Prime Mobile Payments ETF	0.94%	0.79%	0.77%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLY Consumer Discretionary Select Sector SPDR Fund	0.79%	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 IPAY and XLY in my portfolio?

IPAY and XLY have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IPAY or XLY?

IPAY has higher volatility (7.88%) compared to XLY (6.48%). In terms of maximum drawdown, IPAY dropped -51.75% vs XLY's -59.05%.

Which ETF is better, IPAY or XLY?

On 10-year performance, XLY leads with 12.73% vs 6.77% for IPAY. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IPAY or XLY?

Over the 10-year period, XLY has performed better with a 12.73% return vs 6.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IPAY or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.75% for IPAY.

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

IPAY has the higher dividend yield at 0.94%, compared with 0.79% for XLY.

What is the main difference between IPAY and XLY?

IPAY is categorized as Technology Equities, while XLY is Consumer Discretionary Equities. IPAY tracks Prime Mobile Payments Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: ETFMG and State Street. Their fees differ too: 0.75% for IPAY and 0.13% for XLY.

Which has better risk-adjusted returns?

XLY currently has the higher Sharpe Ratio (0.38 vs -1.00), 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.