IYC vs. XLY

Last updated Jun 24, 2026

IYC (iShares U.S. Consumer Discretionary ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both Consumer Discretionary Equities funds - IYC tracks the Dow Jones U.S. Consumer Services Index while XLY tracks the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, IYC returned 11.80%/yr vs 12.73%/yr for XLY. Their correlation of 0.94 suggests significant overlap in exposure. IYC charges 0.38%/yr vs 0.13%/yr for XLY.

Performance

IYC vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Consumer Discretionary ETF (IYC) 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, IYC achieves a -3.42% return, which is significantly higher than XLY's -4.35% return. Over the past 10 years, IYC has underperformed XLY with an annualized return of 11.80%, while XLY has yielded a comparatively higher 12.73% annualized return.

IYC

• 1D: -0.27%
• 1M: -2.64%
• YTD: -3.42%
• 6M: -4.50%
• 1Y: 2.57%
• 3Y*: 13.50%
• 5Y*: 5.77%
• 10Y*: 11.80%

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)

IYC vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYC iShares U.S. Consumer Discretionary ETF	-3.42%	7.85%	27.54%	34.03%	-31.78%	19.65%	24.58%	27.36%	1.76%	19.87%
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 IYC and XLY is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jun 28, 2000	0.94

The correlation between IYC and XLY has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

IYC vs. XLY - Sectors Allocation Comparison

Sectors	IYC	XLY
Consumer Cyclical	67.8%	97.3%
Communication Services	13.4%	1.5%
Consumer Defensive	11.2%	-
Technology	3.8%	0.9%
Industrials	3.6%	0.1%
Energy	0.1%	-
Basic Materials	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IYC vs. XLY — Risk / Return Rank

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

IYC

IYC Risk / Return Rank: 11
IYC Sharpe Ratio Rank: 11
IYC Sortino Ratio Rank: 10
IYC Omega Ratio Rank: 10
IYC Calmar Ratio Rank: 11
IYC Martin Ratio Rank: 11

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.

IYC vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Consumer Discretionary ETF (IYC) 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.

	IYC	XLY	Difference
Sharpe ratio: Return per unit of total volatility	0.18	0.38	-0.20
Sortino ratio: Return per unit of downside risk	0.36	0.66	-0.30
Omega ratio: Gain probability vs. loss probability	1.04	1.08	-0.04
Calmar ratio: Return relative to maximum drawdown	0.22	0.47	-0.25
Martin ratio: Return relative to average drawdown	0.62	1.40	-0.78

IYC vs. XLY - Sharpe Ratio Comparison

The current IYC Sharpe Ratio is 0.18, which is lower than the XLY Sharpe Ratio of 0.38. The chart below compares the historical Sharpe Ratios of IYC 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

IYC vs. XLY - Drawdown Comparison

The maximum IYC drawdown since its inception was -53.10%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IYC and XLY.

Drawdown Indicators

	IYC	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-53.10%	-59.05%	+5.95%
Max Drawdown (1Y) Largest decline over 1 year	-11.97%	-14.98%	+3.01%
Max Drawdown (3Y) Largest decline over 3 years	-21.62%	-26.01%	+4.39%
Max Drawdown (5Y) Largest decline over 5 years	-35.90%	-39.67%	+3.77%
Max Drawdown (10Y) Largest decline over 10 years	-35.90%	-39.67%	+3.77%
Current Drawdown Current decline from peak	-7.07%	-8.28%	+1.21%
Average Drawdown Average peak-to-trough decline	-9.94%	-9.55%	-0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	4.97%	-0.80%

Volatility

IYC vs. XLY - Volatility Comparison

The current volatility for iShares U.S. Consumer Discretionary ETF (IYC) is 4.93%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.48%. This indicates that IYC 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

	IYC	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.93%	6.48%	-1.55%
Volatility (6M) Calculated over the trailing 6-month period	11.18%	13.82%	-2.64%
Volatility (1Y) Calculated over the trailing 1-year period	14.65%	18.55%	-3.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.80%	23.91%	-3.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.91%	22.09%	-2.18%

IYC vs. XLY - Expense Ratio Comparison

IYC has a 0.38% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

IYC vs. XLY - Dividend Comparison

IYC's dividend yield for the trailing twelve months is around 0.52%, less than XLY's 0.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYC iShares U.S. Consumer Discretionary ETF	0.52%	0.51%	0.47%	0.68%	0.68%	0.39%	0.65%	0.89%	0.90%	0.92%	1.10%	1.03%
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 IYC and XLY in my portfolio?

With a correlation of 0.94, IYC and XLY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IYC or XLY?

XLY has higher volatility (6.48%) compared to IYC (4.93%). In terms of maximum drawdown, IYC dropped -53.10% vs XLY's -59.05%.

Which ETF is better, IYC or XLY?

On 10-year performance, XLY leads with 12.73% vs 11.80% for IYC. On fees, XLY is cheaper at 0.13% per year. On volatility, IYC has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYC or XLY?

Over the 10-year period, XLY has performed better with a 12.73% return vs 11.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYC or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.38% for IYC.

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

XLY has the higher dividend yield at 0.79%, compared with 0.52% for IYC.

What is the main difference between IYC and XLY?

IYC tracks Dow Jones U.S. Consumer Services Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for IYC and 0.13% for XLY.

Which has better risk-adjusted returns?

XLY currently has the higher Sharpe Ratio (0.38 vs 0.18), 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.