IYZ vs. XLC
IYZ (iShares U.S. Telecommunications ETF) and XLC (Communication Services Select Sector SPDR Fund) are both Communications Equities funds - IYZ tracks the Dow Jones U.S. Select Telecommunications Index while XLC tracks the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, IYZ returned 7.66%/yr vs 8.31%/yr for XLC. A 0.66 correlation means they provide meaningful diversification when combined. IYZ charges 0.42%/yr vs 0.13%/yr for XLC.
Performance
IYZ vs. XLC - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IYZ achieves a 28.55% return, which is significantly higher than XLC's -4.39% return.
IYZ
- 1D
- -0.79%
- 1M
- 1.50%
- YTD
- 28.55%
- 6M
- 31.94%
- 1Y
- 57.01%
- 3Y*
- 27.64%
- 5Y*
- 7.66%
- 10Y*
- 5.71%
XLC
- 1D
- 0.48%
- 1M
- -3.35%
- YTD
- -4.39%
- 6M
- -3.14%
- 1Y
- 10.72%
- 3Y*
- 21.42%
- 5Y*
- 8.31%
- 10Y*
- —
IYZ vs. XLC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 28.55% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -4.23% |
XLC Communication Services Select Sector SPDR Fund | -4.39% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
Correlation
The correlation between IYZ and XLC is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.66 |
Over the past year, the correlation between IYZ and XLC has dropped to 0.46 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IYZ vs. XLC — Risk / Return Rank
IYZ
XLC
IYZ vs. XLC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Telecommunications ETF (IYZ) and Communication Services Select Sector SPDR Fund (XLC). 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.
| IYZ | XLC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.26 | ||
| Sortino ratioReturn per unit of downside risk | +2.76 | ||
| Omega ratioGain probability vs. loss probability | 1.53 | 1.14 | +0.39 |
| Calmar ratioReturn relative to maximum drawdown | 6.65 | 1.02 | +5.63 |
| Martin ratioReturn relative to average drawdown | 26.10 | 3.21 | +22.89 |
Loading charts...
Drawdowns
IYZ vs. XLC - Drawdown Comparison
The maximum IYZ drawdown since its inception was -77.11%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for IYZ and XLC.
Loading charts...
Drawdown Indicators
| IYZ | XLC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.11% | -46.65% | -30.46% |
Max Drawdown (1Y)Largest decline over 1 year | -8.62% | -10.57% | +1.95% |
Max Drawdown (3Y)Largest decline over 3 years | -13.85% | -17.97% | +4.12% |
Max Drawdown (5Y)Largest decline over 5 years | -39.74% | -46.65% | +6.91% |
Max Drawdown (10Y)Largest decline over 10 years | -39.74% | — | — |
Current DrawdownCurrent decline from peak | -5.52% | -6.27% | +0.75% |
Average DrawdownAverage peak-to-trough decline | -40.09% | -10.58% | -29.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.19% | 3.35% | -1.16% |
Volatility
IYZ vs. XLC - Volatility Comparison
iShares U.S. Telecommunications ETF (IYZ) has a higher volatility of 8.04% compared to Communication Services Select Sector SPDR Fund (XLC) at 3.61%. This indicates that IYZ's price experiences larger fluctuations and is considered to be riskier than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| IYZ | XLC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.04% | 3.61% | +4.43% |
Volatility (6M)Calculated over the trailing 6-month period | 15.62% | 9.66% | +5.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.64% | 13.25% | +5.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.89% | 20.68% | -1.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.31% | 22.17% | -2.86% |
IYZ vs. XLC - Expense Ratio Comparison
IYZ has a 0.42% expense ratio, which is higher than XLC's 0.13% expense ratio.
Dividends
IYZ vs. XLC - Dividend Comparison
IYZ's dividend yield for the trailing twelve months is around 1.91%, more than XLC's 1.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 1.91% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
XLC Communication Services Select Sector SPDR Fund | 1.24% | 1.13% | 0.99% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
IYZ and XLC have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (8.04%) compared to XLC (3.61%). In terms of maximum drawdown, IYZ dropped -77.11% vs XLC's -46.65%.
On 5-year performance, XLC leads with 8.31% vs 7.66% for IYZ. On fees, XLC is cheaper at 0.13% per year. On volatility, XLC has been the lower-risk option at 3.61%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XLC has performed better with a 8.31% return vs 7.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLC is cheaper with a 0.13% expense ratio, compared with 0.42% for IYZ.
IYZ has the higher dividend yield at 1.91%, compared with 1.24% for XLC.
IYZ tracks Dow Jones U.S. Select Telecommunications Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYZ and 0.13% for XLC.
IYZ currently has the higher Sharpe Ratio (3.08 vs 0.81), 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.
Find the right allocation for IYZ and XLC
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer