O vs. XLY

Last updated Jun 13, 2026

O (Realty Income Corporation) is a stock, while XLY (Consumer Discretionary Select Sector SPDR Fund) is Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Over the past 10 years, O returned 4.89%/yr vs 12.78%/yr for XLY. At a 0.38 correlation, their price movements are largely independent.

Performance

O vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Realty Income Corporation (O) 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, O achieves a 13.70% return, which is significantly higher than XLY's -2.16% return. Over the past 10 years, O has underperformed XLY with an annualized return of 4.89%, while XLY has yielded a comparatively higher 12.78% annualized return.

O

• 1D: 1.31%
• 1M: 1.67%
• YTD: 13.70%
• 6M: 11.57%
• 1Y: 14.88%
• 3Y*: 6.59%
• 5Y*: 3.49%
• 10Y*: 4.89%

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)

O vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
O Realty Income Corporation	13.70%	12.20%	-2.11%	-4.55%	-7.38%	23.95%	-11.60%	21.27%	15.94%	3.67%
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 O and XLY is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.06
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.38

Over the past year, the correlation between O and XLY has dropped to 0.06 - well below their long-term average of 0.38, suggesting their price drivers have been diverging.

Return for Risk

O vs. XLY — Risk / Return Rank

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

O

O Risk / Return Rank: 66
O Sharpe Ratio Rank: 71
O Sortino Ratio Rank: 62
O Omega Ratio Rank: 61
O Calmar Ratio Rank: 68
O Martin Ratio Rank: 69

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.

O vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Realty Income Corporation (O) 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.

	O	XLY	Difference
Sharpe ratio: Return per unit of total volatility	0.88	0.55	+0.33
Sortino ratio: Return per unit of downside risk	1.26	0.89	+0.37
Omega ratio: Gain probability vs. loss probability	1.15	1.10	+0.05
Calmar ratio: Return relative to maximum drawdown	1.29	0.67	+0.62
Martin ratio: Return relative to average drawdown	3.12	2.05	+1.06

O vs. XLY - Sharpe Ratio Comparison

The current O Sharpe Ratio is 0.88, which is higher than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of O 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

O vs. XLY - Drawdown Comparison

The maximum O drawdown since its inception was -48.45%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for O and XLY.

Drawdown Indicators

	O	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-48.45%	-59.05%	+10.60%
Max Drawdown (1Y) Largest decline over 1 year	-11.10%	-14.98%	+3.88%
Max Drawdown (3Y) Largest decline over 3 years	-26.49%	-26.01%	-0.48%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-39.67%	+5.19%
Max Drawdown (10Y) Largest decline over 10 years	-48.28%	-39.67%	-8.61%
Current Drawdown Current decline from peak	-5.94%	-6.17%	+0.23%
Average Drawdown Average peak-to-trough decline	-9.20%	-9.55%	+0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	4.88%	-0.30%

Volatility

O vs. XLY - Volatility Comparison

The current volatility for Realty Income Corporation (O) is 5.29%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.19%. This indicates that O 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

	O	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.29%	6.19%	-0.90%
Volatility (6M) Calculated over the trailing 6-month period	11.98%	13.44%	-1.46%
Volatility (1Y) Calculated over the trailing 1-year period	16.21%	18.27%	-2.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.92%	23.83%	-4.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.64%	22.08%	+3.56%

Dividends

O vs. XLY - Dividend Comparison

O's dividend yield for the trailing twelve months is around 5.16%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
O Realty Income Corporation	5.16%	6.19%	5.37%	5.33%	4.68%	3.87%	4.51%	3.69%	4.19%	4.45%	4.18%	4.41%
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 O and XLY in my portfolio?

O and XLY have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, O or XLY?

XLY has higher volatility (6.19%) compared to O (5.29%). In terms of maximum drawdown, O dropped -48.45% vs XLY's -59.05%.

Which has better risk-adjusted returns?

O currently has the higher Sharpe Ratio (0.88 vs 0.55), 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.