IXG vs. XLY

Last updated Jun 14, 2026

IXG (iShares Global Financials ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IXG is a Financials Equities fund tracking the S&P Global Financials Sector 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, IXG returned 12.87%/yr vs 12.78%/yr for XLY. A 0.69 correlation means they provide meaningful diversification when combined. IXG charges 0.46%/yr vs 0.13%/yr for XLY.

Performance

IXG vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Financials ETF (IXG) 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, IXG achieves a 3.78% return, which is significantly higher than XLY's -2.16% return. Both investments have delivered pretty close results over the past 10 years, with IXG having a 12.87% annualized return and XLY not far behind at 12.78%.

IXG

• 1D: 1.28%
• 1M: 4.62%
• YTD: 3.78%
• 6M: 4.96%
• 1Y: 19.03%
• 3Y*: 23.67%
• 5Y*: 12.27%
• 10Y*: 12.87%

XLY

• 1D: 0.26%
• 1M: 0.06%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 11.01%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

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

IXG vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IXG iShares Global Financials ETF	3.78%	28.54%	25.69%	14.97%	-8.97%	25.07%	-2.99%	24.60%	-16.33%	23.78%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.16%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between IXG and XLY is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Nov 26, 2001	0.69

The correlation between IXG and XLY has been stable across timeframes, ranging from 0.62 to 0.69 - a consistent structural relationship.

IXG vs. XLY - Sectors Allocation Comparison

Sectors	IXG	XLY
Financial Services	97.9%	-
Technology	1.1%	0.9%
Industrials	0.2%	0.1%
Energy	0.1%	-
Healthcare	0.1%	-
Consumer Cyclical	0.0%	97.5%
Basic Materials	-	-
Communication Services	-	1.4%
Consumer Defensive	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IXG vs. XLY — Risk / Return Rank

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

IXG

IXG Risk / Return Rank: 37
IXG Sharpe Ratio Rank: 38
IXG Sortino Ratio Rank: 38
IXG Omega Ratio Rank: 35
IXG Calmar Ratio Rank: 34
IXG Martin Ratio Rank: 38

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.

IXG vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Financials ETF (IXG) 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.

	IXG	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.20	0.55	+0.66
Sortino ratio: Return per unit of downside risk	1.78	0.89	+0.89
Omega ratio: Gain probability vs. loss probability	1.21	1.10	+0.10
Calmar ratio: Return relative to maximum drawdown	1.49	0.67	+0.82
Martin ratio: Return relative to average drawdown	5.26	2.05	+3.20

IXG vs. XLY - Sharpe Ratio Comparison

The current IXG Sharpe Ratio is 1.20, which is higher than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of IXG 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

IXG vs. XLY - Drawdown Comparison

The maximum IXG drawdown since its inception was -78.42%, which is greater than XLY's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IXG and XLY.

Drawdown Indicators

	IXG	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-78.42%	-59.05%	-19.37%
Max Drawdown (1Y) Largest decline over 1 year	-11.33%	-14.98%	+3.65%
Max Drawdown (3Y) Largest decline over 3 years	-13.54%	-26.01%	+12.47%
Max Drawdown (5Y) Largest decline over 5 years	-27.20%	-39.67%	+12.47%
Max Drawdown (10Y) Largest decline over 10 years	-43.47%	-39.67%	-3.80%
Current Drawdown Current decline from peak	0.00%	-6.17%	+6.17%
Average Drawdown Average peak-to-trough decline	-19.73%	-9.55%	-10.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.21%	4.88%	-1.67%

Volatility

IXG vs. XLY - Volatility Comparison

The current volatility for iShares Global Financials ETF (IXG) is 4.30%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.19%. This indicates that IXG 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

	IXG	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.30%	6.19%	-1.89%
Volatility (6M) Calculated over the trailing 6-month period	11.30%	13.44%	-2.14%
Volatility (1Y) Calculated over the trailing 1-year period	14.01%	18.27%	-4.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.38%	23.83%	-6.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.12%	22.08%	-1.96%

IXG vs. XLY - Expense Ratio Comparison

IXG has a 0.46% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

IXG vs. XLY - Dividend Comparison

IXG's dividend yield for the trailing twelve months is around 1.97%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IXG iShares Global Financials ETF	1.97%	2.04%	2.64%	2.62%	3.71%	1.69%	2.13%	2.87%	3.14%	2.12%	2.21%	2.79%
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 IXG and XLY in my portfolio?

IXG and XLY have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IXG or XLY?

XLY has higher volatility (6.19%) compared to IXG (4.30%). In terms of maximum drawdown, IXG dropped -78.42% vs XLY's -59.05%.

Which ETF is better, IXG or XLY?

On 10-year performance, IXG leads with 12.87% vs 12.78% for XLY. On fees, XLY is cheaper at 0.13% per year. On volatility, IXG has been the lower-risk option at 4.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IXG or XLY?

Over the 10-year period, IXG has performed better with a 12.87% return vs 12.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IXG or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.46% for IXG.

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

IXG has the higher dividend yield at 1.97%, compared with 0.77% for XLY.

What is the main difference between IXG and XLY?

IXG is categorized as Financials Equities, while XLY is Consumer Discretionary Equities. IXG tracks S&P Global Financials Sector Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.46% for IXG and 0.13% for XLY.

Which has better risk-adjusted returns?

IXG currently has the higher Sharpe Ratio (1.20 vs 0.55), 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.