NLY vs. XOP
NLY (Annaly Capital Management, Inc.) is a stock, while XOP (SPDR S&P Oil & Gas Exploration & Production ETF) is Energy Equities fund tracking the S&P Oil & Gas Exploration & Production Select Industry. Over the past 10 years, NLY returned 5.88%/yr vs 4.04%/yr for XOP. Their 0.26 correlation means their historical movements had little consistent relationship.
Performance
NLY vs. XOP - Performance Comparison
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Returns By Period
In the year-to-date period, NLY achieves a 8.73% return, which is significantly lower than XOP's 37.40% return. Over the past 10 years, NLY has outperformed XOP with an annualized return of 5.88%, while XOP has yielded a comparatively lower 4.04% annualized return.
NLY
- 1D
- -0.13%
- 1M
- 0.84%
- 6M
- 6.49%
- YTD
- 8.73%
- 1Y
- 24.07%
- 3Y*
- 19.76%
- 5Y*
- 5.89%
- 10Y*
- 5.88%
- ALL TIME*
- 9.45%
XOP
- 1D
- -1.34%
- 1M
- 11.19%
- 6M
- 24.11%
- YTD
- 37.40%
- 1Y
- 41.79%
- 3Y*
- 8.56%
- 5Y*
- 19.01%
- 10Y*
- 4.04%
- ALL TIME*
- 2.52%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $202.32M | $168.63M | $172.32M | |
| $562.15M | $553.78M | $583.97M |
NLY vs. XOP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NLY Annaly Capital Management, Inc. | 8.73% | 40.00% | 8.07% | 4.94% | -21.41% | 2.48% | 2.38% | 7.22% | -7.22% | 31.92% |
XOP SPDR S&P Oil & Gas Exploration & Production ETF | 37.40% | -2.15% | -1.00% | 3.56% | 45.37% | 66.74% | -36.40% | -9.44% | -28.10% | -9.47% |
Correlation
The correlation between NLY and XOP is -0.17, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.17 |
Correlation (3Y) Balances recent behavior with more history. | 0.13 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.27 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.28 |
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006 | 0.26 |
The correlation between NLY and XOP shifts across timeframes, from -0.17 (1 year) to 0.28 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
NLY vs. XOP — Risk / Return Rank
NLY
XOP
NLY vs. XOP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Annaly Capital Management, Inc. (NLY) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). 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.
| NLY | XOP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.24 | ||
| Sortino ratioReturn per unit of downside risk | -0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.24 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.62 | 2.27 | -0.64 |
| Martin ratioReturn relative to average drawdown | 4.64 | 5.47 | -0.84 |
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Drawdowns
NLY vs. XOP - Drawdown Comparison
The maximum NLY drawdown since its inception was -60.09%, smaller than the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for NLY and XOP.
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Drawdown Indicators
| NLY | XOP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.09% | -90.27% | +30.18% |
Max Drawdown (1Y)Largest decline over 1 year | -14.88% | -18.50% | +3.62% |
Max Drawdown (3Y)Largest decline over 3 years | -26.28% | -34.98% | +8.70% |
Max Drawdown (5Y)Largest decline over 5 years | -50.21% | -34.98% | -15.23% |
Max Drawdown (10Y)Largest decline over 10 years | -60.09% | -82.61% | +22.52% |
Current DrawdownCurrent decline from peak | -2.86% | -35.78% | +32.92% |
Average DrawdownAverage peak-to-trough decline | -13.77% | -42.55% | +28.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.21% | 7.66% | -2.45% |
Volatility
NLY vs. XOP - Volatility Comparison
The current volatility for Annaly Capital Management, Inc. (NLY) is 5.52%, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a volatility of 8.79%. This indicates that NLY experiences smaller price fluctuations and is considered to be less risky than XOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NLY | XOP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.52% | 8.79% | -3.27% |
Volatility (6M)Calculated over the trailing 6-month period | 14.42% | 22.39% | -7.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.54% | 28.33% | -8.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.52% | 33.48% | -7.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.20% | 40.15% | -11.95% |
Dividends
NLY vs. XOP - Dividend Comparison
NLY's dividend yield for the trailing twelve months is around 12.53%, more than XOP's 1.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NLY Annaly Capital Management, Inc. | 12.53% | 12.52% | 14.21% | 13.42% | 16.70% | 11.25% | 10.77% | 11.15% | 12.22% | 10.09% | 12.04% | 12.79% |
XOP SPDR S&P Oil & Gas Exploration & Production ETF | 1.89% | 2.62% | 2.45% | 2.63% | 2.47% | 1.61% | 2.34% | 1.47% | 0.99% | 0.76% | 0.76% | 2.21% |
Frequently Asked Questions
NLY and XOP have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XOP has higher volatility (8.79%) compared to NLY (5.52%). In terms of maximum drawdown, NLY dropped -60.09% vs XOP's -90.27%.
XOP currently has the higher Sharpe Ratio (1.48 vs 1.24), 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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