IWF vs. XLY

Last updated Jun 12, 2026

IWF (iShares Russell 1000 Growth ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IWF is a Large Cap Growth Equities fund tracking the Russell 1000 Growth 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, IWF returned 18.15%/yr vs 12.72%/yr for XLY. Their correlation of 0.82 suggests significant overlap in exposure. IWF charges 0.18%/yr vs 0.13%/yr for XLY.

Performance

IWF vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 1000 Growth ETF (IWF) 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, IWF achieves a 2.83% return, which is significantly higher than XLY's -2.41% return. Over the past 10 years, IWF has outperformed XLY with an annualized return of 18.15%, while XLY has yielded a comparatively lower 12.72% annualized return.

IWF

• 1D: 1.57%
• 1M: -1.44%
• YTD: 2.83%
• 6M: 1.71%
• 1Y: 19.30%
• 3Y*: 22.57%
• 5Y*: 13.90%
• 10Y*: 18.15%

XLY

• 1D: 2.48%
• 1M: -1.68%
• YTD: -2.41%
• 6M: -2.84%
• 1Y: 9.18%
• 3Y*: 13.28%
• 5Y*: 6.94%
• 10Y*: 12.72%

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

IWF vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWF iShares Russell 1000 Growth ETF	2.83%	18.33%	33.12%	42.59%	-29.31%	27.43%	38.25%	35.86%	-1.67%	29.95%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.41%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between IWF and XLY is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since May 26, 2000	0.82

The correlation between IWF and XLY shifts across timeframes, from 0.68 (1 year) to 0.83 (10 years), reflecting how their relationship changes across market environments.

IWF vs. XLY - Sectors Allocation Comparison

Sectors	IWF	XLY
Technology	53.2%	0.9%
Consumer Cyclical	12.7%	97.6%
Communication Services	12.3%	1.3%
Healthcare	7.0%	-
Industrials	5.0%	0.1%
Financial Services	4.9%	-
Consumer Defensive	2.5%	-
Utilities	1.1%	-
Real Estate	0.4%	-
Energy	0.4%	-
Basic Materials	0.3%	-

Return for Risk

IWF vs. XLY — Risk / Return Rank

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

IWF

IWF Risk / Return Rank: 36
IWF Sharpe Ratio Rank: 41
IWF Sortino Ratio Rank: 39
IWF Omega Ratio Rank: 39
IWF Calmar Ratio Rank: 29
IWF Martin Ratio Rank: 32

XLY

XLY Risk / Return Rank: 19
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 19
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 19
XLY Martin Ratio Rank: 20

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.

IWF vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 1000 Growth ETF (IWF) 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.

	IWF	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.21	0.50	+0.71
Sortino ratio: Return per unit of downside risk	1.70	0.83	+0.86
Omega ratio: Gain probability vs. loss probability	1.22	1.10	+0.12
Calmar ratio: Return relative to maximum drawdown	1.19	0.62	+0.58
Martin ratio: Return relative to average drawdown	3.93	1.89	+2.04

IWF vs. XLY - Sharpe Ratio Comparison

The current IWF Sharpe Ratio is 1.21, which is higher than the XLY Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of IWF 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

IWF vs. XLY - Drawdown Comparison

The maximum IWF drawdown since its inception was -64.25%, which is greater than XLY's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IWF and XLY.

Drawdown Indicators

	IWF	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-64.25%	-59.05%	-5.20%
Max Drawdown (1Y) Largest decline over 1 year	-16.27%	-14.98%	-1.29%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-26.01%	+2.65%
Max Drawdown (5Y) Largest decline over 5 years	-32.72%	-39.67%	+6.95%
Max Drawdown (10Y) Largest decline over 10 years	-32.72%	-39.67%	+6.95%
Current Drawdown Current decline from peak	-5.59%	-6.41%	+0.82%
Average Drawdown Average peak-to-trough decline	-22.06%	-9.55%	-12.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.92%	4.86%	+0.06%

Volatility

IWF vs. XLY - Volatility Comparison

The current volatility for iShares Russell 1000 Growth ETF (IWF) is 5.43%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.20%. This indicates that IWF experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IWF	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.43%	6.20%	-0.77%
Volatility (6M) Calculated over the trailing 6-month period	12.40%	13.52%	-1.12%
Volatility (1Y) Calculated over the trailing 1-year period	15.96%	18.29%	-2.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.47%	23.84%	-2.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.01%	22.08%	-1.07%

IWF vs. XLY - Expense Ratio Comparison

IWF has a 0.18% expense ratio, which is higher than XLY's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IWF vs. XLY - Dividend Comparison

IWF's dividend yield for the trailing twelve months is around 0.35%, less than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWF iShares Russell 1000 Growth ETF	0.35%	0.36%	0.46%	0.67%	0.91%	0.49%	0.66%	0.99%	1.27%	1.10%	1.43%	1.37%
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 IWF and XLY in my portfolio?

IWF and XLY have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWF or XLY?

XLY has higher volatility (6.20%) compared to IWF (5.43%). In terms of maximum drawdown, IWF dropped -64.25% vs XLY's -59.05%.

Which ETF is better, IWF or XLY?

On 10-year performance, IWF leads with 18.15% vs 12.72% for XLY. On fees, XLY is cheaper at 0.13% per year. On volatility, IWF has been the lower-risk option at 5.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWF or XLY?

Over the 10-year period, IWF has performed better with a 18.15% return vs 12.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWF or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.18% for IWF.

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

XLY has the higher dividend yield at 0.77%, compared with 0.35% for IWF.

What is the main difference between IWF and XLY?

IWF is categorized as Large Cap Growth Equities, while XLY is Consumer Discretionary Equities. IWF tracks Russell 1000 Growth Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.18% for IWF and 0.13% for XLY.

Which has better risk-adjusted returns?

IWF currently has the higher Sharpe Ratio (1.21 vs 0.50), 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.