IYJ vs. XLII

Last updated Jun 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. Their correlation of 0.93 suggests significant overlap in exposure. 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 5.81% return, which is significantly lower than XLII's 6.89% return.

IYJ

• 1D: -0.62%
• 1M: 0.44%
• YTD: 5.81%
• 6M: 7.55%
• 1Y: 12.86%
• 3Y*: 16.95%
• 5Y*: 7.87%
• 10Y*: 12.31%

XLII

• 1D: 0.86%
• 1M: 1.58%
• YTD: 6.89%
• 6M: 9.52%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IYJ vs. XLII - Yearly Performance Comparison

	2026 (YTD)	2025
IYJ iShares U.S. Industrials ETF	5.81%	2.44%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	6.89%	6.62%

Correlation

The correlation between IYJ and XLII is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 31, 2025	0.93

IYJ vs. XLII - Sectors Allocation Comparison

Sectors	IYJ	XLII
Industrials	66.6%	-
Financial Services	17.0%	100.3%
Technology	6.6%	-
Basic Materials	4.0%	-
Utilities	3.6%	-
Consumer Cyclical	1.7%	-
Healthcare	0.4%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

IYJ vs. XLII — Risk / Return Rank

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

IYJ

IYJ Risk / Return Rank: 25
IYJ Sharpe Ratio Rank: 24
IYJ Sortino Ratio Rank: 24
IYJ Omega Ratio Rank: 22
IYJ Calmar Ratio Rank: 24
IYJ Martin Ratio Rank: 28

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.

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.

	IYJ	XLII	Difference
Sharpe ratio Return per unit of total volatility	0.86	—	—
Sortino ratio Return per unit of downside risk	1.32	—	—
Omega ratio Gain probability vs. loss probability	1.15	—	—
Calmar ratio Return relative to maximum drawdown	1.13	—	—
Martin ratio Return relative to average drawdown	4.10	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	IYJ	XLII	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.86	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	1.46	-1.09

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%	—	—
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	-3.24%	-0.21%	-3.03%
Average Drawdown Average peak-to-trough decline	-11.21%	-1.35%	-9.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	—	—

Volatility

Volatility by Period

	IYJ	XLII	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.05%	—	—
Volatility (6M) Calculated over the trailing 6-month period	11.88%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	15.05%	11.57%	+3.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.04%	11.57%	+6.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.87%	11.57%	+8.30%

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 0.78%, less than XLII's 11.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYJ iShares U.S. Industrials ETF	0.78%	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	11.27%	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 ETF is better, IYJ or XLII?

On fees, XLII is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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 11.27%, compared with 0.78% 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.