IYM vs. XLBI

Last updated Aug 2, 2026

IYM (iShares U.S. Basic Materials ETF) and XLBI (State Street Materials Select Sector SPDR Premium Income ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials Index, while XLBI is a Derivative Income fund actively managed by State Street. IYM is passively managed, while XLBI is actively managed. Over the past year, IYM returned 28.28% vs 14.41% for XLBI. Their correlation of 0.90 means they have usually moved in the same direction. IYM charges 0.42%/yr vs 0.35%/yr for XLBI.

Performance

IYM vs. XLBI - Performance Comparison

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

Returns By Period

In the year-to-date period, IYM achieves a 14.73% return, which is significantly higher than XLBI's 7.49% return.

IYM

• 1D: -1.96%
• 1M: -3.54%
• 6M: 3.72%
• YTD: 14.73%
• 1Y: 28.28%
• 3Y*: 10.20%
• 5Y*: 7.53%
• 10Y*: 10.11%
• ALL TIME*: 8.27%

XLBI

• 1D: -1.27%
• 1M: -1.73%
• 6M: 3.94%
• YTD: 7.49%
• 1Y: 14.41%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 9.90%

*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)
IYM iShares U.S. Basic Materials ETF	$17.03M	$23.02M	$39.39M
XLBI State Street Materials Select Sector SPDR Premium Income ETF	$131.30K	$122.38K	$132.20K

IYM vs. XLBI - Yearly Performance Comparison

	2026 (YTD)	2025
IYM iShares U.S. Basic Materials ETF	14.73%	6.99%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	7.49%	2.25%

Correlation

The correlation between IYM and XLBI is 0.89, 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.	0.89
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.90

The correlation between IYM and XLBI has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

IYM vs. XLBI - Sectors Allocation Comparison

Sectors	IYM	XLBI
Basic Materials	84.7%	-
Industrials	12.0%	-
Consumer Cyclical	3.3%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	100.5%
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IYM vs. XLBI — Risk / Return Rank

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

IYM

IYM Risk / Return Rank: 55
IYM Sharpe Ratio Rank: 57
IYM Sortino Ratio Rank: 55
IYM Omega Ratio Rank: 52
IYM Calmar Ratio Rank: 56
IYM Martin Ratio Rank: 57

XLBI

XLBI Risk / Return Rank: 38
XLBI Sharpe Ratio Rank: 39
XLBI Sortino Ratio Rank: 37
XLBI Omega Ratio Rank: 38
XLBI Calmar Ratio Rank: 37
XLBI Martin Ratio Rank: 43

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.

IYM vs. XLBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). 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.

	IYM	XLBI	Difference
Sharpe ratio: Return per unit of total volatility	1.36	0.97	+0.39
Sortino ratio: Return per unit of downside risk	1.91	1.38	+0.52
Omega ratio: Gain probability vs. loss probability	1.23	1.18	+0.05
Calmar ratio: Return relative to maximum drawdown	1.98	1.25	+0.72
Martin ratio: Return relative to average drawdown	6.68	4.66	+2.02

IYM vs. XLBI - Sharpe Ratio Comparison

The current IYM Sharpe Ratio is 1.36, which is higher than the XLBI Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of IYM and XLBI, 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

IYM vs. XLBI - Drawdown Comparison

The maximum IYM drawdown since its inception was -67.78%, which is greater than XLBI's maximum drawdown of -10.62%. Use the drawdown chart below to compare losses from any high point for IYM and XLBI.

Drawdown Indicators

	IYM	XLBI	Difference
Max Drawdown Largest peak-to-trough decline	-67.78%	-10.62%	-57.16%
Max Drawdown (1Y) Largest decline over 1 year	-13.61%	-10.62%	-2.99%
Max Drawdown (3Y) Largest decline over 3 years	-23.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-29.94%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.76%	—	—
Current Drawdown Current decline from peak	-7.05%	-2.43%	-4.62%
Average Drawdown Average peak-to-trough decline	-11.41%	-2.10%	-9.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	2.86%	+1.16%

Volatility

IYM vs. XLBI - Volatility Comparison

iShares U.S. Basic Materials ETF (IYM) has a higher volatility of 5.29% compared to State Street Materials Select Sector SPDR Premium Income ETF (XLBI) at 4.91%. This indicates that IYM's price experiences larger fluctuations and is considered to be riskier than XLBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYM	XLBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.29%	4.91%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	16.09%	11.38%	+4.71%
Volatility (1Y) Calculated over the trailing 1-year period	19.88%	13.82%	+6.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.51%	13.92%	+6.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.72%	13.92%	+7.80%

IYM vs. XLBI - Expense Ratio Comparison

IYM has a 0.42% expense ratio, which is higher than XLBI's 0.35% expense ratio.

Dividends

IYM vs. XLBI - Dividend Comparison

IYM's dividend yield for the trailing twelve months is around 1.33%, less than XLBI's 14.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYM iShares U.S. Basic Materials ETF	1.33%	1.51%	1.65%	1.77%	2.14%	1.48%	1.39%	2.08%	1.68%	1.43%	1.47%	2.04%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	14.88%	7.71%	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 IYM and XLBI in my portfolio?

IYM and XLBI have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYM or XLBI?

IYM has higher volatility (5.29%) compared to XLBI (4.91%). In terms of maximum drawdown, IYM dropped -67.78% vs XLBI's -10.62%.

Which ETF is better, IYM or XLBI?

On 1-year performance, IYM leads with 28.28% vs 14.41% for XLBI. On fees, XLBI is cheaper at 0.35% per year. On volatility, XLBI has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYM or XLBI?

Over the 1-year period, IYM has performed better with a 28.28% return vs 14.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYM or XLBI?

XLBI is cheaper with a 0.35% expense ratio, compared with 0.42% for IYM.

Which ETF pays a higher dividend yield, IYM or XLBI?

XLBI has the higher dividend yield at 14.88%, compared with 1.33% for IYM.

What is the main difference between IYM and XLBI?

IYM is categorized as Materials, while XLBI is Derivative Income. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYM and 0.35% for XLBI.

Which has better risk-adjusted returns?

IYM currently has the higher Sharpe Ratio (1.36 vs 0.97), 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.