MISL vs. XLII

Last updated Jun 4, 2026

MISL (First Trust Indxx Aerospace & Defense ETF) and XLII (State Street Industrial Select Sector SPDR Premium Income ETF) are both exchange-traded funds - MISL is a Industrials Equities fund tracking the Indxx US Aerospace & Defense Index - Benchmark TR Gross, while XLII is a Derivative Income fund actively managed by State Street. MISL is passively managed, while XLII is actively managed. A 0.70 correlation means they provide meaningful diversification when combined. MISL charges 0.60%/yr vs 0.35%/yr for XLII.

Performance

MISL vs. XLII - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Indxx Aerospace & Defense ETF (MISL) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MISL achieves a 7.59% return, which is significantly higher than XLII's 6.73% return.

MISL

• 1D: -2.71%
• 1M: 5.48%
• YTD: 7.59%
• 6M: 13.84%
• 1Y: 32.38%
• 3Y*: 28.35%
• 5Y*: —
• 10Y*: —

XLII

• 1D: -0.15%
• 1M: 2.45%
• YTD: 6.73%
• 6M: 8.74%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MISL vs. XLII - Yearly Performance Comparison

	2026 (YTD)	2025
MISL First Trust Indxx Aerospace & Defense ETF	7.59%	9.39%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	6.73%	6.62%

Correlation

The correlation between MISL and XLII is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 31, 2025	0.70

MISL vs. XLII - Sectors Allocation Comparison

Sectors	MISL	XLII
Industrials	83.0%	-
Technology	17.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	100.3%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

MISL vs. XLII — Risk / Return Rank

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

MISL

MISL Risk / Return Rank: 39
MISL Sharpe Ratio Rank: 40
MISL Sortino Ratio Rank: 41
MISL Omega Ratio Rank: 35
MISL Calmar Ratio Rank: 42
MISL Martin Ratio Rank: 35

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.

MISL vs. XLII - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII). 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.

	MISL	XLII	Difference
Sharpe ratio: Return per unit of total volatility	1.44	—	—
Sortino ratio: Return per unit of downside risk	2.10	—	—
Omega ratio: Gain probability vs. loss probability	1.24	—	—
Calmar ratio: Return relative to maximum drawdown	2.07	—	—
Martin ratio: Return relative to average drawdown	5.49	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	MISL	XLII	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.35	1.44	-0.09

Drawdowns

MISL vs. XLII - Drawdown Comparison

The maximum MISL drawdown since its inception was -17.91%, which is greater than XLII's maximum drawdown of -10.10%. Use the drawdown chart below to compare losses from any high point for MISL and XLII.

Drawdown Indicators

	MISL	XLII	Difference
Max Drawdown Largest peak-to-trough decline	-17.91%	-10.10%	-7.81%
Max Drawdown (1Y) Largest decline over 1 year	-15.69%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-17.91%	—	—
Current Drawdown Current decline from peak	-9.75%	-0.36%	-9.39%
Average Drawdown Average peak-to-trough decline	-3.50%	-1.34%	-2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	—	—

Volatility

Volatility by Period

	MISL	XLII	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.50%	—	—
Volatility (6M) Calculated over the trailing 6-month period	19.14%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	22.60%	11.55%	+11.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.14%	11.55%	+7.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	11.55%	+7.59%

MISL vs. XLII - Expense Ratio Comparison

MISL has a 0.60% expense ratio, which is higher than XLII's 0.35% expense ratio.

Dividends

MISL vs. XLII - Dividend Comparison

MISL's dividend yield for the trailing twelve months is around 0.36%, less than XLII's 11.29% yield.

Position	TTM	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	0.36%	0.40%	0.74%	0.63%	0.08%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	11.29%	5.47%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MISL and XLII in my portfolio?

MISL and XLII have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, MISL or XLII?

On fees, XLII is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, MISL or XLII?

XLII is cheaper with a 0.35% expense ratio, compared with 0.60% for MISL.

Which ETF pays a higher dividend yield, MISL or XLII?

XLII has the higher dividend yield at 11.29%, compared with 0.36% for MISL.

What is the main difference between MISL and XLII?

MISL is categorized as Industrials Equities, while XLII is Derivative Income. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.60% for MISL and 0.35% for XLII.