JNK vs. XLB
Compare and contrast key facts about SPDR Barclays High Yield Bond ETF (JNK) and Materials Select Sector SPDR ETF (XLB).
JNK and XLB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. JNK is a passively managed fund by State Street that tracks the performance of the Barclays Capital High Yield Very Liquid Index. It was launched on Nov 28, 2007. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. Both JNK and XLB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: JNK or XLB.
Key characteristics
| JNK | XLB | |
|---|---|---|
| YTD Return | 7.55% | 8.84% |
| 1Y Return | 12.80% | 17.37% |
| 3Y Return (Ann) | 2.30% | 2.92% |
| 5Y Return (Ann) | 3.43% | 11.04% |
| 10Y Return (Ann) | 3.69% | 8.63% |
| Sharpe Ratio | 2.78 | 1.35 |
| Sortino Ratio | 4.26 | 1.88 |
| Omega Ratio | 1.54 | 1.23 |
| Calmar Ratio | 2.12 | 2.03 |
| Martin Ratio | 21.06 | 6.37 |
| Ulcer Index | 0.62% | 2.81% |
| Daily Std Dev | 4.66% | 13.27% |
| Max Drawdown | -38.48% | -59.83% |
| Current Drawdown | -0.73% | -5.85% |
Correlation
The correlation between JNK and XLB is 0.57, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
JNK vs. XLB - Performance Comparison
In the year-to-date period, JNK achieves a 7.55% return, which is significantly lower than XLB's 8.84% return. Over the past 10 years, JNK has underperformed XLB with an annualized return of 3.69%, while XLB has yielded a comparatively higher 8.63% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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JNK vs. XLB - Expense Ratio Comparison
JNK has a 0.40% expense ratio, which is higher than XLB's 0.13% expense ratio.
Risk-Adjusted Performance
JNK vs. XLB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Barclays High Yield Bond ETF (JNK) and Materials Select Sector SPDR ETF (XLB). 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.
Dividends
JNK vs. XLB - Dividend Comparison
JNK's dividend yield for the trailing twelve months is around 6.57%, more than XLB's 1.91% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
JNK SPDR Barclays High Yield Bond ETF | 6.57% | 6.38% | 6.06% | 4.26% | 5.11% | 5.44% | 5.90% | 5.60% | 6.06% | 6.60% | 5.99% | 6.05% |
XLB Materials Select Sector SPDR ETF | 1.91% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
Drawdowns
JNK vs. XLB - Drawdown Comparison
The maximum JNK drawdown since its inception was -38.48%, smaller than the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for JNK and XLB. For additional features, visit the drawdowns tool.
Volatility
JNK vs. XLB - Volatility Comparison
The current volatility for SPDR Barclays High Yield Bond ETF (JNK) is 1.20%, while Materials Select Sector SPDR ETF (XLB) has a volatility of 3.59%. This indicates that JNK experiences smaller price fluctuations and is considered to be less risky than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.