IYZ vs. XLI
IYZ (iShares U.S. Telecommunications ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, IYZ returned 6.28%/yr vs 13.99%/yr for XLI. A 0.65 correlation means they provide meaningful diversification when combined. IYZ charges 0.42%/yr vs 0.13%/yr for XLI.
Performance
IYZ vs. XLI - Performance Comparison
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Returns By Period
In the year-to-date period, IYZ achieves a 32.03% return, which is significantly higher than XLI's 12.52% return. Over the past 10 years, IYZ has underperformed XLI with an annualized return of 6.28%, while XLI has yielded a comparatively higher 13.99% annualized return.
IYZ
- 1D
- -2.96%
- 1M
- 4.94%
- YTD
- 32.03%
- 6M
- 38.73%
- 1Y
- 59.79%
- 3Y*
- 30.34%
- 5Y*
- 8.18%
- 10Y*
- 6.28%
XLI
- 1D
- -0.08%
- 1M
- 1.80%
- YTD
- 12.52%
- 6M
- 13.57%
- 1Y
- 22.72%
- 3Y*
- 21.72%
- 5Y*
- 12.26%
- 10Y*
- 13.99%
IYZ vs. XLI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 32.03% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
XLI Industrial Select Sector SPDR Fund | 12.52% | 19.35% | 17.31% | 18.13% | -5.57% | 21.08% | 10.91% | 29.08% | -13.25% | 23.98% |
Correlation
The correlation between IYZ and XLI is 0.57, 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 | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since May 30, 2000 | 0.65 |
The correlation between IYZ and XLI shifts across timeframes, from 0.57 (1 year) to 0.68 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IYZ vs. XLI — Risk / Return Rank
IYZ
XLI
IYZ vs. XLI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Telecommunications ETF (IYZ) and Industrial Select Sector SPDR Fund (XLI). 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.
| IYZ | XLI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.86 | ||
| Sortino ratioReturn per unit of downside risk | +2.27 | ||
| Omega ratioGain probability vs. loss probability | 1.58 | 1.26 | +0.33 |
| Calmar ratioReturn relative to maximum drawdown | 9.54 | 1.87 | +7.67 |
| Martin ratioReturn relative to average drawdown | 32.08 | 7.41 | +24.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IYZ | XLI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.35 | 1.49 | +1.86 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.44 | 0.71 | -0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.33 | 0.70 | -0.38 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.07 | 0.45 | -0.38 |
Drawdowns
IYZ vs. XLI - Drawdown Comparison
The maximum IYZ drawdown since its inception was -77.11%, which is greater than XLI's maximum drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for IYZ and XLI.
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Drawdown Indicators
| IYZ | XLI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.11% | -62.26% | -14.85% |
Max Drawdown (1Y)Largest decline over 1 year | -6.30% | -12.21% | +5.91% |
Max Drawdown (3Y)Largest decline over 3 years | -13.85% | -18.49% | +4.64% |
Max Drawdown (5Y)Largest decline over 5 years | -39.74% | -21.64% | -18.10% |
Max Drawdown (10Y)Largest decline over 10 years | -39.74% | -42.33% | +2.59% |
Current DrawdownCurrent decline from peak | -2.96% | -2.44% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -40.14% | -9.21% | -30.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.87% | 3.07% | -1.20% |
Volatility
IYZ vs. XLI - Volatility Comparison
iShares U.S. Telecommunications ETF (IYZ) has a higher volatility of 7.44% compared to Industrial Select Sector SPDR Fund (XLI) at 4.80%. This indicates that IYZ's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYZ | XLI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.44% | 4.80% | +2.64% |
Volatility (6M)Calculated over the trailing 6-month period | 14.76% | 12.79% | +1.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.95% | 15.38% | +2.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.75% | 17.42% | +1.33% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.25% | 19.98% | -0.73% |
IYZ vs. XLI - Expense Ratio Comparison
IYZ has a 0.42% expense ratio, which is higher than XLI's 0.13% expense ratio.
Dividends
IYZ vs. XLI - Dividend Comparison
IYZ's dividend yield for the trailing twelve months is around 1.50%, more than XLI's 1.18% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 1.50% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
XLI Industrial Select Sector SPDR Fund | 1.18% | 1.29% | 1.44% | 1.63% | 1.63% | 1.25% | 1.55% | 1.94% | 2.15% | 1.77% | 2.07% | 2.15% |
Frequently Asked Questions
IYZ and XLI have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (7.44%) compared to XLI (4.80%). In terms of maximum drawdown, IYZ dropped -77.11% vs XLI's -62.26%.
On 10-year performance, XLI leads with 13.99% vs 6.28% for IYZ. On fees, XLI is cheaper at 0.13% per year. On volatility, XLI has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLI has performed better with a 13.99% return vs 6.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLI is cheaper with a 0.13% expense ratio, compared with 0.42% for IYZ.
IYZ has the higher dividend yield at 1.50%, compared with 1.18% for XLI.
IYZ is categorized as Communications Equities, while XLI is Industrials Equities. IYZ tracks Dow Jones U.S. Select Telecommunications Index, while XLI tracks Industrial 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 XLI.
IYZ currently has the higher Sharpe Ratio (3.35 vs 1.49), 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.
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