KBWD vs. XLY

Last updated Jun 14, 2026

KBWD (Invesco KBW High Dividend Yield Financial ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - KBWD is a Financials Equities fund tracking the KBW Nasdaq Financial Sector Dividend Yield 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, KBWD returned 5.25%/yr vs 12.78%/yr for XLY. A 0.62 correlation means they provide meaningful diversification when combined. KBWD charges 1.24%/yr vs 0.13%/yr for XLY.

Performance

KBWD vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco KBW High Dividend Yield Financial ETF (KBWD) 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, KBWD achieves a -3.74% return, which is significantly lower than XLY's -2.16% return. Over the past 10 years, KBWD has underperformed XLY with an annualized return of 5.25%, while XLY has yielded a comparatively higher 12.78% annualized return.

KBWD

• 1D: 0.80%
• 1M: -1.25%
• YTD: -3.74%
• 6M: -4.15%
• 1Y: 3.52%
• 3Y*: 5.00%
• 5Y*: 0.34%
• 10Y*: 5.25%

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)

KBWD vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KBWD Invesco KBW High Dividend Yield Financial ETF	-3.74%	5.59%	4.30%	20.21%	-19.14%	31.89%	-15.58%	20.72%	-8.70%	12.06%
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 KBWD and XLY is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Dec 2, 2010	0.62

The correlation between KBWD and XLY has been stable across timeframes, ranging from 0.53 to 0.63 - a consistent structural relationship.

KBWD vs. XLY - Sectors Allocation Comparison

Sectors	KBWD	XLY
Financial Services	60.8%	-
Real Estate	39.2%	-
Basic Materials	-	-
Communication Services	-	1.4%
Consumer Cyclical	-	97.5%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	0.1%
Technology	-	0.9%
Utilities	-	-

Return for Risk

KBWD vs. XLY — Risk / Return Rank

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

KBWD

KBWD Risk / Return Rank: 11
KBWD Sharpe Ratio Rank: 11
KBWD Sortino Ratio Rank: 11
KBWD Omega Ratio Rank: 11
KBWD Calmar Ratio Rank: 11
KBWD Martin Ratio Rank: 11

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.

KBWD vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) 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.

	KBWD	XLY	Difference
Sharpe ratio: Return per unit of total volatility	0.13	0.55	-0.42
Sortino ratio: Return per unit of downside risk	0.29	0.89	-0.60
Omega ratio: Gain probability vs. loss probability	1.03	1.10	-0.07
Calmar ratio: Return relative to maximum drawdown	0.13	0.67	-0.54
Martin ratio: Return relative to average drawdown	0.32	2.05	-1.73

KBWD vs. XLY - Sharpe Ratio Comparison

The current KBWD Sharpe Ratio is 0.13, which is lower than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of KBWD 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

KBWD vs. XLY - Drawdown Comparison

The maximum KBWD drawdown since its inception was -58.63%, roughly equal to the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for KBWD and XLY.

Drawdown Indicators

	KBWD	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-58.63%	-59.05%	+0.42%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-14.98%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-19.65%	-26.01%	+6.36%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-39.67%	+8.93%
Max Drawdown (10Y) Largest decline over 10 years	-58.63%	-39.67%	-18.96%
Current Drawdown Current decline from peak	-10.58%	-6.17%	-4.41%
Average Drawdown Average peak-to-trough decline	-7.41%	-9.55%	+2.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.10%	4.88%	+1.22%

Volatility

KBWD vs. XLY - Volatility Comparison

The current volatility for Invesco KBW High Dividend Yield Financial ETF (KBWD) is 4.70%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.19%. This indicates that KBWD experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KBWD	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.70%	6.19%	-1.49%
Volatility (6M) Calculated over the trailing 6-month period	12.36%	13.44%	-1.08%
Volatility (1Y) Calculated over the trailing 1-year period	15.59%	18.27%	-2.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.89%	23.83%	-3.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.25%	22.08%	+1.17%

KBWD vs. XLY - Expense Ratio Comparison

KBWD has a 1.24% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

KBWD vs. XLY - Dividend Comparison

KBWD's dividend yield for the trailing twelve months is around 14.14%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWD Invesco KBW High Dividend Yield Financial ETF	14.14%	12.83%	12.45%	11.45%	11.32%	7.26%	9.68%	8.63%	9.47%	8.77%	8.68%	8.89%
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 KBWD and XLY in my portfolio?

KBWD and XLY have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBWD or XLY?

XLY has higher volatility (6.19%) compared to KBWD (4.70%). In terms of maximum drawdown, KBWD dropped -58.63% vs XLY's -59.05%.

Which ETF is better, KBWD or XLY?

On 10-year performance, XLY leads with 12.78% vs 5.25% for KBWD. On fees, XLY is cheaper at 0.13% per year. On volatility, KBWD has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBWD or XLY?

Over the 10-year period, XLY has performed better with a 12.78% return vs 5.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBWD or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 1.24% for KBWD.

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

KBWD has the higher dividend yield at 14.14%, compared with 0.77% for XLY.

What is the main difference between KBWD and XLY?

KBWD is categorized as Financials Equities, while XLY is Consumer Discretionary Equities. KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 1.24% for KBWD and 0.13% for XLY.

Which has better risk-adjusted returns?

XLY currently has the higher Sharpe Ratio (0.55 vs 0.13), 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.