IYJ vs. XLII

Last updated Aug 4, 2026

IYJ (iShares U.S. Industrials ETF) and XLII (State Street Industrial Select Sector SPDR Premium Income ETF) are both exchange-traded funds - IYJ is a Industrials Equities fund tracking the Dow Jones U.S. Industrials Index, while XLII is a Derivative Income fund actively managed by State Street. IYJ is passively managed, while XLII is actively managed. Over the past year, IYJ returned 17.95% vs 22.47% for XLII. Their correlation of 0.93 means they have usually moved in the same direction. IYJ charges 0.38%/yr vs 0.35%/yr for XLII.

Performance

IYJ vs. XLII - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Industrials ETF (IYJ) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYJ achieves a 12.88% return, which is significantly lower than XLII's 13.54% return.

IYJ

• 1D: 1.71%
• 1M: 0.11%
• 6M: 7.11%
• YTD: 12.88%
• 1Y: 17.95%
• 3Y*: 16.91%
• 5Y*: 9.36%
• 10Y*: 12.57%
• ALL TIME*: 8.09%

XLII

• 1D: 1.46%
• 1M: 0.97%
• 6M: 9.62%
• YTD: 13.54%
• 1Y: 22.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 20.46%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IYJ iShares U.S. Industrials ETF	$23.95M	$14.74M	$15.31M
XLII State Street Industrial Select Sector SPDR Premium Income ETF	$466.82K	$338.40K	$220.17K

IYJ vs. XLII - Yearly Performance Comparison

	2026 (YTD)	2025
IYJ iShares U.S. Industrials ETF	12.88%	1.86%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	13.54%	6.30%

Correlation

The correlation between IYJ and XLII is 0.93, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.93
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.93

The correlation between IYJ and XLII has been stable across timeframes, ranging from 0.93 to 0.93 - a consistent structural relationship.

IYJ vs. XLII - Sectors Allocation Comparison

Sectors	IYJ	XLII
Industrials	65.6%	93.8%
Financial Services	17.3%	100.8%
Technology	7.1%	5.9%
Basic Materials	4.5%	-
Utilities	3.3%	-
Consumer Cyclical	1.6%	0.3%
Healthcare	0.4%	-
Consumer Defensive	0.0%	-
Communication Services	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

IYJ vs. XLII — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IYJ

IYJ Risk / Return Rank: 44
IYJ Sharpe Ratio Rank: 44
IYJ Sortino Ratio Rank: 44
IYJ Omega Ratio Rank: 40
IYJ Calmar Ratio Rank: 43
IYJ Martin Ratio Rank: 49

XLII

XLII Risk / Return Rank: 70
XLII Sharpe Ratio Rank: 73
XLII Sortino Ratio Rank: 73
XLII Omega Ratio Rank: 74
XLII Calmar Ratio Rank: 58
XLII Martin Ratio Rank: 74

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IYJ vs. XLII - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Industrials ETF (IYJ) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). 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.

	IYJ	XLII	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.84	-0.71
Sortino ratio: Return per unit of downside risk	1.66	2.60	-0.94
Omega ratio: Gain probability vs. loss probability	1.20	1.34	-0.14
Calmar ratio: Return relative to maximum drawdown	1.58	2.23	-0.65
Martin ratio: Return relative to average drawdown	5.80	10.06	-4.27

IYJ vs. XLII - Sharpe Ratio Comparison

The current IYJ Sharpe Ratio is 1.13, which is lower than the XLII Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of IYJ and XLII, 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

IYJ vs. XLII - Drawdown Comparison

The maximum IYJ drawdown since its inception was -61.97%, which is greater than XLII's maximum drawdown of -10.10%. Use the drawdown chart below to compare losses from any high point for IYJ and XLII.

Drawdown Indicators

	IYJ	XLII	Difference
Max Drawdown Largest peak-to-trough decline	-61.97%	-10.10%	-51.87%
Max Drawdown (1Y) Largest decline over 1 year	-11.39%	-10.10%	-1.29%
Max Drawdown (3Y) Largest decline over 3 years	-19.67%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-26.24%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-40.20%	—	—
Current Drawdown Current decline from peak	-0.47%	0.00%	-0.47%
Average Drawdown Average peak-to-trough decline	-11.15%	-1.27%	-9.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	2.24%	+0.86%

Volatility

IYJ vs. XLII - Volatility Comparison

iShares U.S. Industrials ETF (IYJ) has a higher volatility of 4.71% compared to State Street Industrial Select Sector SPDR Premium Income ETF (XLII) at 4.09%. This indicates that IYJ's price experiences larger fluctuations and is considered to be riskier than XLII based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYJ	XLII	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.71%	4.09%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	12.78%	10.53%	+2.25%
Volatility (1Y) Calculated over the trailing 1-year period	16.00%	12.30%	+3.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.18%	12.29%	+5.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.90%	12.29%	+7.61%

IYJ vs. XLII - Expense Ratio Comparison

IYJ has a 0.38% expense ratio, which is higher than XLII's 0.35% expense ratio.

Dividends

IYJ vs. XLII - Dividend Comparison

IYJ's dividend yield for the trailing twelve months is around 0.70%, less than XLII's 13.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYJ iShares U.S. Industrials ETF	0.70%	0.83%	0.88%	1.05%	1.05%	0.76%	1.01%	1.32%	1.43%	1.29%	1.38%	1.53%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	13.20%	5.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IYJ and XLII in my portfolio?

With a correlation of 0.93, IYJ and XLII 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, IYJ or XLII?

IYJ has higher volatility (4.71%) compared to XLII (4.09%). In terms of maximum drawdown, IYJ dropped -61.97% vs XLII's -10.10%.

Which ETF is better, IYJ or XLII?

On 1-year performance, XLII leads with 22.47% vs 17.95% for IYJ. On fees, XLII is cheaper at 0.35% per year. On volatility, XLII has been the lower-risk option at 4.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYJ or XLII?

Over the 1-year period, XLII has performed better with a 22.47% return vs 17.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYJ or XLII?

XLII is cheaper with a 0.35% expense ratio, compared with 0.38% for IYJ.

Which ETF pays a higher dividend yield, IYJ or XLII?

XLII has the higher dividend yield at 13.20%, compared with 0.70% for IYJ.

What is the main difference between IYJ and XLII?

IYJ is categorized as Industrials Equities, while XLII is Derivative Income. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for IYJ and 0.35% for XLII.

Which has better risk-adjusted returns?

XLII currently has the higher Sharpe Ratio (1.84 vs 1.13), 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.