IYT vs. XLY

Last updated Jun 14, 2026

IYT (iShares Transportation Average ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, IYT returned 11.08%/yr vs 12.78%/yr for XLY. A 0.72 correlation means they provide meaningful diversification when combined. IYT charges 0.42%/yr vs 0.13%/yr for XLY.

Performance

IYT vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Transportation Average ETF (IYT) 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, IYT achieves a 16.53% return, which is significantly higher than XLY's -2.16% return. Over the past 10 years, IYT has underperformed XLY with an annualized return of 11.08%, while XLY has yielded a comparatively higher 12.78% annualized return.

IYT

• 1D: 0.45%
• 1M: 7.88%
• YTD: 16.53%
• 6M: 13.90%
• 1Y: 34.06%
• 3Y*: 14.84%
• 5Y*: 6.47%
• 10Y*: 11.08%

XLY

• 1D: 0.26%
• 1M: -1.74%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 11.01%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

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

IYT vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYT iShares Transportation Average ETF	16.53%	11.48%	4.10%	24.62%	-21.74%	26.41%	14.20%	20.11%	-12.87%	18.89%
XLY Consumer Discretionary Select Sector SPDR Fund	-2.16%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between IYT and XLY is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Oct 10, 2003	0.72

The correlation between IYT and XLY shifts across timeframes, from 0.61 (1 year) to 0.72 (all time), reflecting how their relationship changes across market environments.

IYT vs. XLY - Sectors Allocation Comparison

Sectors	IYT	XLY
Industrials	84.4%	0.1%
Technology	15.6%	0.9%
Basic Materials	-	-
Communication Services	-	1.4%
Consumer Cyclical	-	97.5%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IYT vs. XLY — Risk / Return Rank

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

IYT

IYT Risk / Return Rank: 53
IYT Sharpe Ratio Rank: 51
IYT Sortino Ratio Rank: 51
IYT Omega Ratio Rank: 49
IYT Calmar Ratio Rank: 61
IYT Martin Ratio Rank: 56

XLY

XLY Risk / Return Rank: 19
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 19
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 19
XLY Martin Ratio Rank: 20

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.

IYT vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Transportation Average ETF (IYT) 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.

	IYT	XLY	Difference
Sharpe ratio: Return per unit of total volatility	1.54	0.55	+1.00
Sortino ratio: Return per unit of downside risk	2.19	0.89	+1.30
Omega ratio: Gain probability vs. loss probability	1.27	1.10	+0.17
Calmar ratio: Return relative to maximum drawdown	2.63	0.67	+1.96
Martin ratio: Return relative to average drawdown	8.56	2.05	+6.51

IYT vs. XLY - Sharpe Ratio Comparison

The current IYT Sharpe Ratio is 1.54, which is higher than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of IYT 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

IYT vs. XLY - Drawdown Comparison

The maximum IYT drawdown since its inception was -60.39%, roughly equal to the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IYT and XLY.

Drawdown Indicators

	IYT	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-60.39%	-59.05%	-1.34%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-14.98%	+2.89%
Max Drawdown (3Y) Largest decline over 3 years	-26.35%	-26.01%	-0.34%
Max Drawdown (5Y) Largest decline over 5 years	-29.15%	-39.67%	+10.52%
Max Drawdown (10Y) Largest decline over 10 years	-41.28%	-39.67%	-1.61%
Current Drawdown Current decline from peak	0.00%	-6.17%	+6.17%
Average Drawdown Average peak-to-trough decline	-9.30%	-9.55%	+0.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.71%	4.88%	-1.17%

Volatility

IYT vs. XLY - Volatility Comparison

iShares Transportation Average ETF (IYT) and Consumer Discretionary Select Sector SPDR Fund (XLY) have volatilities of 6.45% and 6.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYT	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.45%	6.19%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	15.94%	13.44%	+2.50%
Volatility (1Y) Calculated over the trailing 1-year period	20.61%	18.27%	+2.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.38%	23.83%	-1.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.18%	22.08%	+1.10%

IYT vs. XLY - Expense Ratio Comparison

IYT has a 0.42% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

IYT vs. XLY - Dividend Comparison

IYT's dividend yield for the trailing twelve months is around 0.93%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYT iShares Transportation Average ETF	0.93%	1.00%	1.08%	1.26%	1.40%	0.77%	0.93%	1.29%	1.35%	0.92%	0.96%	1.28%
XLY Consumer Discretionary Select Sector SPDR Fund	0.77%	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 IYT and XLY in my portfolio?

IYT and XLY have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYT or XLY?

IYT has higher volatility (6.45%) compared to XLY (6.19%). In terms of maximum drawdown, IYT dropped -60.39% vs XLY's -59.05%.

Which ETF is better, IYT or XLY?

On 10-year performance, XLY leads with 12.78% vs 11.08% for IYT. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYT or XLY?

Over the 10-year period, XLY has performed better with a 12.78% return vs 11.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYT or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.42% for IYT.

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

IYT has the higher dividend yield at 0.93%, compared with 0.77% for XLY.

What is the main difference between IYT and XLY?

IYT is categorized as Transportation Equities, while XLY is Consumer Discretionary Equities. IYT tracks Dow Jones Transportation Average Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYT and 0.13% for XLY.

Which has better risk-adjusted returns?

IYT currently has the higher Sharpe Ratio (1.54 vs 0.55), 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.