REMX vs. XLY

Last updated Jun 13, 2026

REMX (VanEck Rare Earth and Strategic Metals ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - REMX is a Materials fund tracking the MarketVector Global Rare Earth/Strategic Metals 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, REMX returned 10.32%/yr vs 12.78%/yr for XLY. At a 0.49 correlation, their price movements are largely independent. REMX charges 0.59%/yr vs 0.13%/yr for XLY.

Performance

REMX vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Rare Earth and Strategic Metals ETF (REMX) 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, REMX achieves a 29.19% return, which is significantly higher than XLY's -2.16% return. Over the past 10 years, REMX has underperformed XLY with an annualized return of 10.32%, while XLY has yielded a comparatively higher 12.78% annualized return.

REMX

• 1D: 2.73%
• 1M: -10.13%
• YTD: 29.19%
• 6M: 34.20%
• 1Y: 144.64%
• 3Y*: 5.16%
• 5Y*: 4.80%
• 10Y*: 10.32%

XLY

• 1D: 0.26%
• 1M: -1.79%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 9.98%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

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

REMX vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
REMX VanEck Rare Earth and Strategic Metals ETF	29.19%	92.95%	-35.02%	-19.18%	-31.13%	79.81%	64.82%	0.74%	-49.63%	82.60%
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 REMX and XLY is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.48
Correlation (All Time) Calculated using the full available price history since Oct 28, 2010	0.49

Over the past year, the correlation between REMX and XLY has dropped to 0.28 - well below their long-term average of 0.49, suggesting their price drivers have been diverging.

REMX vs. XLY - Sectors Allocation Comparison

Sectors	REMX	XLY
Basic Materials	100.0%	-
Communication Services	-	1.3%
Consumer Cyclical	-	97.6%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Technology	-	0.9%
Utilities	-	-

Return for Risk

REMX vs. XLY — Risk / Return Rank

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

REMX

REMX Risk / Return Rank: 87
REMX Sharpe Ratio Rank: 93
REMX Sortino Ratio Rank: 83
REMX Omega Ratio Rank: 78
REMX Calmar Ratio Rank: 94
REMX Martin Ratio Rank: 88

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.

REMX vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Rare Earth and Strategic Metals ETF (REMX) 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.

	REMX	XLY	Difference
Sharpe ratio: Return per unit of total volatility	2.93	0.55	+2.38
Sortino ratio: Return per unit of downside risk	3.19	0.89	+2.30
Omega ratio: Gain probability vs. loss probability	1.40	1.10	+0.29
Calmar ratio: Return relative to maximum drawdown	6.23	0.67	+5.56
Martin ratio: Return relative to average drawdown	16.82	2.05	+14.77

REMX vs. XLY - Sharpe Ratio Comparison

The current REMX Sharpe Ratio is 2.93, which is higher than the XLY Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of REMX 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

REMX vs. XLY - Drawdown Comparison

The maximum REMX drawdown since its inception was -90.20%, which is greater than XLY's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for REMX and XLY.

Drawdown Indicators

	REMX	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-90.20%	-59.05%	-31.15%
Max Drawdown (1Y) Largest decline over 1 year	-23.35%	-14.98%	-8.37%
Max Drawdown (3Y) Largest decline over 3 years	-62.11%	-26.01%	-36.10%
Max Drawdown (5Y) Largest decline over 5 years	-73.34%	-39.67%	-33.67%
Max Drawdown (10Y) Largest decline over 10 years	-73.34%	-39.67%	-33.67%
Current Drawdown Current decline from peak	-56.27%	-6.17%	-50.10%
Average Drawdown Average peak-to-trough decline	-66.84%	-9.55%	-57.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.63%	4.88%	+3.75%

Volatility

REMX vs. XLY - Volatility Comparison

VanEck Rare Earth and Strategic Metals ETF (REMX) has a higher volatility of 17.56% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 6.19%. This indicates that REMX's price experiences larger fluctuations and is considered to be riskier than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REMX	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.56%	6.19%	+11.37%
Volatility (6M) Calculated over the trailing 6-month period	37.14%	13.44%	+23.70%
Volatility (1Y) Calculated over the trailing 1-year period	49.74%	18.27%	+31.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.64%	23.83%	+16.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.14%	22.08%	+15.06%

REMX vs. XLY - Expense Ratio Comparison

REMX has a 0.59% expense ratio, which is higher than XLY's 0.13% expense ratio.

Dividends

REMX vs. XLY - Dividend Comparison

REMX's dividend yield for the trailing twelve months is around 1.36%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REMX VanEck Rare Earth and Strategic Metals ETF	1.36%	1.76%	2.56%	0.00%	1.56%	5.25%	0.81%	1.64%	12.43%	2.89%	2.23%	4.77%
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 REMX and XLY in my portfolio?

REMX and XLY have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REMX or XLY?

REMX has higher volatility (17.56%) compared to XLY (6.19%). In terms of maximum drawdown, REMX dropped -90.20% vs XLY's -59.05%.

Which ETF is better, REMX or XLY?

On 10-year performance, XLY leads with 12.78% vs 10.32% for REMX. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REMX or XLY?

Over the 10-year period, XLY has performed better with a 12.78% return vs 10.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REMX or XLY?

XLY is cheaper with a 0.13% expense ratio, compared with 0.59% for REMX.

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

REMX has the higher dividend yield at 1.36%, compared with 0.77% for XLY.

What is the main difference between REMX and XLY?

REMX is categorized as Materials, while XLY is Consumer Discretionary Equities. REMX tracks MarketVector Global Rare Earth/Strategic Metals Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: VanEck and State Street. Their fees differ too: 0.59% for REMX and 0.13% for XLY.

Which has better risk-adjusted returns?

REMX currently has the higher Sharpe Ratio (2.93 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.