JQUA vs. XLC

Last updated Jun 24, 2026

JQUA (JPMorgan U.S. Quality Factor ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - JQUA is a Large Cap Blend Equities fund tracking the JP Morgan US Quality Factor Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, JQUA returned 13.08%/yr vs 6.99%/yr for XLC. A 0.75 correlation means they provide meaningful diversification when combined. JQUA charges 0.12%/yr vs 0.13%/yr for XLC.

Performance

JQUA vs. XLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in JPMorgan U.S. Quality Factor ETF (JQUA) and Communication Services Select Sector SPDR Fund (XLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, JQUA achieves a 11.30% return, which is significantly higher than XLC's -8.35% return.

JQUA

• 1D: -2.01%
• 1M: 0.56%
• YTD: 11.30%
• 6M: 10.20%
• 1Y: 20.17%
• 3Y*: 19.01%
• 5Y*: 13.08%
• 10Y*: —

XLC

• 1D: 0.38%
• 1M: -6.85%
• YTD: -8.35%
• 6M: -8.09%
• 1Y: 4.55%
• 3Y*: 20.09%
• 5Y*: 6.99%
• 10Y*: —

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

JQUA vs. XLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
JQUA JPMorgan U.S. Quality Factor ETF	11.30%	11.69%	21.21%	25.13%	-13.45%	28.68%	16.56%	28.47%	-6.57%
XLC Communication Services Select Sector SPDR Fund	-8.35%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.45%

Correlation

The correlation between JQUA and XLC is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018	0.75

The correlation between JQUA and XLC shifts across timeframes, from 0.56 (1 year) to 0.76 (5 years), reflecting how their relationship changes across market environments.

JQUA vs. XLC - Sectors Allocation Comparison

Sectors	JQUA	XLC
Technology	43.9%	4.2%
Financial Services	11.1%	-
Consumer Cyclical	9.2%	-
Industrials	8.0%	-
Healthcare	7.9%	-
Communication Services	6.5%	95.6%
Consumer Defensive	5.2%	-
Energy	3.4%	-
Real Estate	2.1%	-
Basic Materials	1.6%	-
Utilities	1.2%	-

Return for Risk

JQUA vs. XLC — Risk / Return Rank

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

JQUA

JQUA Risk / Return Rank: 55
JQUA Sharpe Ratio Rank: 51
JQUA Sortino Ratio Rank: 50
JQUA Omega Ratio Rank: 48
JQUA Calmar Ratio Rank: 60
JQUA Martin Ratio Rank: 66

XLC

XLC Risk / Return Rank: 13
XLC Sharpe Ratio Rank: 13
XLC Sortino Ratio Rank: 12
XLC Omega Ratio Rank: 12
XLC Calmar Ratio Rank: 13
XLC Martin Ratio Rank: 15

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.

JQUA vs. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for JPMorgan U.S. Quality Factor ETF (JQUA) 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.

	JQUA	XLC	Difference
Sharpe ratio: Return per unit of total volatility	1.69	0.34	+1.35
Sortino ratio: Return per unit of downside risk	2.37	0.57	+1.80
Omega ratio: Gain probability vs. loss probability	1.29	1.07	+0.23
Calmar ratio: Return relative to maximum drawdown	2.84	0.43	+2.41
Martin ratio: Return relative to average drawdown	11.58	1.27	+10.31

JQUA vs. XLC - Sharpe Ratio Comparison

The current JQUA Sharpe Ratio is 1.69, which is higher than the XLC Sharpe Ratio of 0.34. The chart below compares the historical Sharpe Ratios of JQUA and XLC, 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

JQUA vs. XLC - Drawdown Comparison

The maximum JQUA drawdown since its inception was -32.92%, smaller than the maximum XLC drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for JQUA and XLC.

Drawdown Indicators

	JQUA	XLC	Difference
Max Drawdown Largest peak-to-trough decline	-32.92%	-46.65%	+13.73%
Max Drawdown (1Y) Largest decline over 1 year	-7.13%	-10.57%	+3.44%
Max Drawdown (3Y) Largest decline over 3 years	-16.81%	-17.97%	+1.16%
Max Drawdown (5Y) Largest decline over 5 years	-22.47%	-46.65%	+24.18%
Current Drawdown Current decline from peak	-2.77%	-10.15%	+7.38%
Average Drawdown Average peak-to-trough decline	-4.15%	-10.57%	+6.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.75%	3.58%	-1.83%

Volatility

JQUA vs. XLC - Volatility Comparison

JPMorgan U.S. Quality Factor ETF (JQUA) has a higher volatility of 5.52% compared to Communication Services Select Sector SPDR Fund (XLC) at 4.67%. This indicates that JQUA'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.

Volatility by Period

	JQUA	XLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.52%	4.67%	+0.85%
Volatility (6M) Calculated over the trailing 6-month period	9.51%	10.24%	-0.73%
Volatility (1Y) Calculated over the trailing 1-year period	12.05%	13.54%	-1.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.74%	20.74%	-5.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.01%	22.17%	-4.16%

JQUA vs. XLC - Expense Ratio Comparison

JQUA has a 0.12% expense ratio, which is lower than XLC's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

JQUA vs. XLC - Dividend Comparison

JQUA's dividend yield for the trailing twelve months is around 1.10%, less than XLC's 1.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
JQUA JPMorgan U.S. Quality Factor ETF	1.10%	1.19%	1.24%	1.21%	1.60%	1.32%	1.44%	1.67%	2.10%	0.40%
XLC Communication Services Select Sector SPDR Fund	1.33%	1.13%	0.99%	0.82%	1.10%	0.74%	0.68%	0.82%	0.64%	0.00%

Frequently Asked Questions

Can I hold both JQUA and XLC in my portfolio?

JQUA and XLC have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, JQUA or XLC?

JQUA has higher volatility (5.52%) compared to XLC (4.67%). In terms of maximum drawdown, JQUA dropped -32.92% vs XLC's -46.65%.

Which ETF is better, JQUA or XLC?

On 5-year performance, JQUA leads with 13.08% vs 6.99% for XLC. On fees, JQUA is cheaper at 0.12% per year. On volatility, XLC has been the lower-risk option at 4.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, JQUA or XLC?

Over the 5-year period, JQUA has performed better with a 13.08% return vs 6.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, JQUA or XLC?

JQUA is cheaper with a 0.12% expense ratio, compared with 0.13% for XLC.

Which ETF pays a higher dividend yield, JQUA or XLC?

XLC has the higher dividend yield at 1.33%, compared with 1.10% for JQUA.

What is the main difference between JQUA and XLC?

JQUA is categorized as Large Cap Blend Equities, while XLC is Communications Equities. JQUA tracks JP Morgan US Quality Factor Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: JPMorgan and State Street. Their fees differ too: 0.12% for JQUA and 0.13% for XLC.

Which has better risk-adjusted returns?

JQUA currently has the higher Sharpe Ratio (1.69 vs 0.34), 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.