QEMM vs. XLE

Last updated Jun 4, 2026

QEMM (SPDR MSCI Emerging Markets StrategicFactors ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - QEMM is a Emerging Markets Equities fund tracking the MSCI EM Factor Mix A-Series (USD), while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, QEMM returned 8.96%/yr vs 10.22%/yr for XLE. At a 0.39 correlation, their price movements are largely independent. QEMM charges 0.30%/yr vs 0.08%/yr for XLE.

Performance

QEMM vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QEMM achieves a 24.39% return, which is significantly lower than XLE's 32.17% return. Over the past 10 years, QEMM has underperformed XLE with an annualized return of 8.96%, while XLE has yielded a comparatively higher 10.22% annualized return.

QEMM

• 1D: -1.21%
• 1M: 6.69%
• YTD: 24.39%
• 6M: 26.00%
• 1Y: 42.27%
• 3Y*: 19.52%
• 5Y*: 7.37%
• 10Y*: 8.96%

XLE

• 1D: 1.29%
• 1M: -1.14%
• YTD: 32.17%
• 6M: 29.80%
• 1Y: 45.00%
• 3Y*: 17.46%
• 5Y*: 20.44%
• 10Y*: 10.22%

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

QEMM vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QEMM SPDR MSCI Emerging Markets StrategicFactors ETF	24.39%	21.92%	4.98%	12.50%	-17.82%	6.34%	9.95%	15.40%	-13.33%	31.50%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between QEMM and XLE is -0.02, 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	-0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Jun 9, 2014	0.39

The correlation between QEMM and XLE shifts across timeframes, from -0.02 (1 year) to 0.39 (all time), reflecting how their relationship changes across market environments.

QEMM vs. XLE - Sectors Allocation Comparison

Sectors	QEMM	XLE
Technology	33.8%	-
Financial Services	19.6%	-
Consumer Cyclical	8.3%	-
Industrials	7.2%	-
Communication Services	6.4%	-
Consumer Defensive	6.1%	-
Energy	5.7%	100.0%
Basic Materials	5.6%	-
Healthcare	3.5%	-
Utilities	3.0%	-
Real Estate	0.8%	-

Return for Risk

QEMM vs. XLE — Risk / Return Rank

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

QEMM

QEMM Risk / Return Rank: 78
QEMM Sharpe Ratio Rank: 78
QEMM Sortino Ratio Rank: 75
QEMM Omega Ratio Rank: 79
QEMM Calmar Ratio Rank: 79
QEMM Martin Ratio Rank: 77

XLE

XLE Risk / Return Rank: 63
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 56
XLE Calmar Ratio Rank: 73
XLE Martin Ratio Rank: 60

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.

QEMM vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	QEMM	XLE	Difference
Sharpe ratio: Return per unit of total volatility	2.54	2.21	+0.34
Sortino ratio: Return per unit of downside risk	3.41	2.84	+0.57
Omega ratio: Gain probability vs. loss probability	1.48	1.35	+0.12
Calmar ratio: Return relative to maximum drawdown	4.08	3.75	+0.33
Martin ratio: Return relative to average drawdown	14.92	10.92	+4.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QEMM vs. XLE - Sharpe Ratio Comparison

The current QEMM Sharpe Ratio is 2.54, which is comparable to the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of QEMM and XLE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QEMM	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.54	2.21	+0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	0.79	-0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.35	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.31	+0.03

Drawdowns

QEMM vs. XLE - Drawdown Comparison

The maximum QEMM drawdown since its inception was -36.89%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for QEMM and XLE.

Drawdown Indicators

	QEMM	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-36.89%	-71.26%	+34.37%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-12.05%	+1.65%
Max Drawdown (3Y) Largest decline over 3 years	-17.03%	-20.14%	+3.11%
Max Drawdown (5Y) Largest decline over 5 years	-27.49%	-26.04%	-1.45%
Max Drawdown (10Y) Largest decline over 10 years	-36.89%	-66.81%	+29.92%
Current Drawdown Current decline from peak	-1.21%	-6.15%	+4.94%
Average Drawdown Average peak-to-trough decline	-10.64%	-17.98%	+7.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	4.14%	-1.30%

Volatility

QEMM vs. XLE - Volatility Comparison

The current volatility for SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) is 7.29%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 8.25%. This indicates that QEMM experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QEMM	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.29%	8.25%	-0.96%
Volatility (6M) Calculated over the trailing 6-month period	14.78%	16.58%	-1.80%
Volatility (1Y) Calculated over the trailing 1-year period	16.69%	20.53%	-3.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.23%	26.02%	-10.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.89%	29.59%	-12.70%

QEMM vs. XLE - Expense Ratio Comparison

QEMM has a 0.30% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

QEMM vs. XLE - Dividend Comparison

QEMM's dividend yield for the trailing twelve months is around 4.34%, more than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QEMM SPDR MSCI Emerging Markets StrategicFactors ETF	4.34%	4.90%	5.17%	4.88%	4.07%	2.35%	2.48%	3.05%	2.86%	2.11%	2.03%	2.14%
XLE State Street Energy Select Sector SPDR ETF	2.54%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both QEMM and XLE in my portfolio?

QEMM and XLE have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QEMM or XLE?

XLE has higher volatility (8.25%) compared to QEMM (7.29%). In terms of maximum drawdown, QEMM dropped -36.89% vs XLE's -71.26%.

Which ETF is better, QEMM or XLE?

On 10-year performance, XLE leads with 10.22% vs 8.96% for QEMM. On fees, XLE is cheaper at 0.08% per year. On volatility, QEMM has been the lower-risk option at 7.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QEMM or XLE?

Over the 10-year period, XLE has performed better with a 10.22% return vs 8.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QEMM or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.30% for QEMM.

Which ETF pays a higher dividend yield, QEMM or XLE?

QEMM has the higher dividend yield at 4.34%, compared with 2.54% for XLE.

What is the main difference between QEMM and XLE?

QEMM is categorized as Emerging Markets Equities, while XLE is Energy Equities. QEMM tracks MSCI EM Factor Mix A-Series (USD), while XLE tracks Energy Select Sector Index. Their fees differ too: 0.30% for QEMM and 0.08% for XLE.

Which has better risk-adjusted returns?

QEMM currently has the higher Sharpe Ratio (2.54 vs 2.21), 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.