IYC vs. XLI

Last updated Jun 9, 2026

IYC (iShares U.S. Consumer Discretionary ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - IYC is a Consumer Discretionary Equities fund tracking the Dow Jones U.S. Consumer Services Index, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, IYC returned 11.51%/yr vs 13.86%/yr for XLI. A 0.77 correlation means they provide meaningful diversification when combined. IYC charges 0.38%/yr vs 0.08%/yr for XLI.

Performance

IYC vs. XLI - Performance Comparison

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

Returns By Period

In the year-to-date period, IYC achieves a -3.16% return, which is significantly lower than XLI's 12.25% return. Over the past 10 years, IYC has underperformed XLI with an annualized return of 11.51%, while XLI has yielded a comparatively higher 13.86% annualized return.

IYC

• 1D: 0.16%
• 1M: -2.96%
• YTD: -3.16%
• 6M: -2.65%
• 1Y: 3.32%
• 3Y*: 14.43%
• 5Y*: 6.25%
• 10Y*: 11.51%

XLI

• 1D: -0.32%
• 1M: 0.25%
• YTD: 12.25%
• 6M: 13.16%
• 1Y: 21.42%
• 3Y*: 21.04%
• 5Y*: 12.54%
• 10Y*: 13.86%

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

IYC vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYC iShares U.S. Consumer Discretionary ETF	-3.16%	7.85%	27.54%	34.03%	-31.78%	19.65%	24.58%	27.36%	1.76%	19.87%
XLI Industrial Select Sector SPDR Fund	12.25%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between IYC and XLI is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jun 29, 2000	0.77

The correlation between IYC and XLI shifts across timeframes, from 0.63 (1 year) to 0.77 (all time), reflecting how their relationship changes across market environments.

IYC vs. XLI - Sectors Allocation Comparison

Sectors	IYC	XLI
Consumer Cyclical	67.8%	0.5%
Communication Services	13.7%	-
Consumer Defensive	11.2%	-
Technology	3.6%	4.0%
Industrials	3.5%	90.7%
Energy	0.1%	-
Basic Materials	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	4.8%

Return for Risk

IYC vs. XLI — Risk / Return Rank

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

IYC

IYC Risk / Return Rank: 13
IYC Sharpe Ratio Rank: 13
IYC Sortino Ratio Rank: 12
IYC Omega Ratio Rank: 12
IYC Calmar Ratio Rank: 13
IYC Martin Ratio Rank: 13

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 44
XLI Sortino Ratio Rank: 46
XLI Omega Ratio Rank: 40
XLI Calmar Ratio Rank: 39
XLI Martin Ratio Rank: 46

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.

IYC vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Consumer Discretionary ETF (IYC) and Industrial Select Sector SPDR Fund (XLI). 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.

	IYC	XLI	Difference
Sharpe ratio: Return per unit of total volatility	0.23	1.39	-1.16
Sortino ratio: Return per unit of downside risk	0.44	2.06	-1.62
Omega ratio: Gain probability vs. loss probability	1.05	1.24	-0.19
Calmar ratio: Return relative to maximum drawdown	0.28	1.76	-1.48
Martin ratio: Return relative to average drawdown	0.83	6.97	-6.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYC vs. XLI - Sharpe Ratio Comparison

The current IYC Sharpe Ratio is 0.23, which is lower than the XLI Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of IYC and XLI, 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

	IYC	XLI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.23	1.39	-1.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.72	-0.42
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.70	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.45	-0.04

Drawdowns

IYC vs. XLI - Drawdown Comparison

The maximum IYC drawdown since its inception was -53.10%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for IYC and XLI.

Drawdown Indicators

	IYC	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-53.10%	-62.26%	+9.16%
Max Drawdown (1Y) Largest decline over 1 year	-11.97%	-12.21%	+0.24%
Max Drawdown (3Y) Largest decline over 3 years	-21.62%	-18.49%	-3.13%
Max Drawdown (5Y) Largest decline over 5 years	-35.90%	-21.64%	-14.26%
Max Drawdown (10Y) Largest decline over 10 years	-35.90%	-42.33%	+6.43%
Current Drawdown Current decline from peak	-6.82%	-2.67%	-4.15%
Average Drawdown Average peak-to-trough decline	-9.95%	-9.20%	-0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	3.08%	+0.94%

Volatility

IYC vs. XLI - Volatility Comparison

The current volatility for iShares U.S. Consumer Discretionary ETF (IYC) is 3.73%, while Industrial Select Sector SPDR Fund (XLI) has a volatility of 3.98%. This indicates that IYC experiences smaller price fluctuations and is considered to be less risky than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYC	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.73%	3.98%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	10.53%	12.84%	-2.31%
Volatility (1Y) Calculated over the trailing 1-year period	14.29%	15.47%	-1.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.73%	17.43%	+3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.90%	19.99%	-0.09%

IYC vs. XLI - Expense Ratio Comparison

IYC has a 0.38% expense ratio, which is higher than XLI's 0.08% expense ratio.

Dividends

IYC vs. XLI - Dividend Comparison

IYC's dividend yield for the trailing twelve months is around 0.51%, less than XLI's 1.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYC iShares U.S. Consumer Discretionary ETF	0.51%	0.51%	0.47%	0.68%	0.68%	0.39%	0.65%	0.89%	0.90%	0.92%	1.10%	1.03%
XLI Industrial Select Sector SPDR Fund	1.18%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%

Frequently Asked Questions

Can I hold both IYC and XLI in my portfolio?

IYC and XLI have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYC or XLI?

XLI has higher volatility (3.98%) compared to IYC (3.73%). In terms of maximum drawdown, IYC dropped -53.10% vs XLI's -62.26%.

Which ETF is better, IYC or XLI?

On 10-year performance, XLI leads with 13.86% vs 11.51% for IYC. On fees, XLI is cheaper at 0.08% per year. On volatility, IYC has been the lower-risk option at 3.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYC or XLI?

Over the 10-year period, XLI has performed better with a 13.86% return vs 11.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYC or XLI?

XLI is cheaper with a 0.08% expense ratio, compared with 0.38% for IYC.

Which ETF pays a higher dividend yield, IYC or XLI?

XLI has the higher dividend yield at 1.18%, compared with 0.51% for IYC.

What is the main difference between IYC and XLI?

IYC is categorized as Consumer Discretionary Equities, while XLI is Industrials Equities. IYC tracks Dow Jones U.S. Consumer Services Index, while XLI tracks Industrial Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for IYC and 0.08% for XLI.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.39 vs 0.23), 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.