SETM vs. XLBI

Last updated Jul 14, 2026

SETM (Sprott Critical Materials ETF) and XLBI (State Street Materials Select Sector SPDR Premium Income ETF) are both exchange-traded funds - SETM is a Materials fund tracking the Nasdaq Sprott Critical Materials Index, while XLBI is a Derivative Income fund actively managed by State Street. SETM is passively managed, while XLBI is actively managed. A 0.56 correlation means they provide meaningful diversification when combined. SETM charges 0.65%/yr vs 0.35%/yr for XLBI.

Performance

SETM vs. XLBI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sprott Critical Materials ETF (SETM) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SETM achieves a 1.35% return, which is significantly lower than XLBI's 6.83% return.

SETM

• 1D: -3.52%
• 1M: -14.31%
• 6M: -14.39%
• YTD: 1.35%
• 1Y: 59.83%
• 3Y*: 18.54%
• 5Y*: —
• 10Y*: —

XLBI

• 1D: -0.90%
• 1M: -1.70%
• 6M: 4.52%
• YTD: 6.83%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SETM vs. XLBI - Yearly Performance Comparison

	2026 (YTD)	2025
SETM Sprott Critical Materials ETF	1.35%	51.91%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	6.83%	2.25%

Correlation

The correlation between SETM and XLBI is 0.56, 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 30, 2025	0.56

SETM vs. XLBI - Sectors Allocation Comparison

Sectors	SETM	XLBI
Basic Materials	76.0%	-
Energy	22.9%	-
Industrials	1.0%	-
Technology	0.1%	-
Consumer Defensive	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	-
Financial Services	-	98.9%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SETM vs. XLBI — Risk / Return Rank

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

SETM

SETM Risk / Return Rank: 47
SETM Sharpe Ratio Rank: 46
SETM Sortino Ratio Rank: 42
SETM Omega Ratio Rank: 44
SETM Calmar Ratio Rank: 58
SETM Martin Ratio Rank: 44

XLBI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

SETM vs. XLBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sprott Critical Materials ETF (SETM) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). 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.

	SETM	XLBI	Difference
Sharpe ratio: Return per unit of total volatility	1.30	—	—
Sortino ratio: Return per unit of downside risk	1.76	—	—
Omega ratio: Gain probability vs. loss probability	1.23	—	—
Calmar ratio: Return relative to maximum drawdown	2.30	—	—
Martin ratio: Return relative to average drawdown	5.76	—	—

Drawdowns

SETM vs. XLBI - Drawdown Comparison

The maximum SETM drawdown since its inception was -42.81%, which is greater than XLBI's maximum drawdown of -10.62%. Use the drawdown chart below to compare losses from any high point for SETM and XLBI.

Drawdown Indicators

	SETM	XLBI	Difference
Max Drawdown Largest peak-to-trough decline	-42.81%	-10.62%	-32.19%
Max Drawdown (1Y) Largest decline over 1 year	-26.15%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-42.81%	—	—
Current Drawdown Current decline from peak	-26.15%	-2.76%	-23.39%
Average Drawdown Average peak-to-trough decline	-15.15%	-2.10%	-13.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.43%	—	—

Volatility

Volatility by Period

	SETM	XLBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.74%	—	—
Volatility (6M) Calculated over the trailing 6-month period	37.11%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	46.50%	13.94%	+32.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.17%	13.94%	+23.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.17%	13.94%	+23.23%

SETM vs. XLBI - Expense Ratio Comparison

SETM has a 0.65% expense ratio, which is higher than XLBI's 0.35% expense ratio.

Dividends

SETM vs. XLBI - Dividend Comparison

SETM's dividend yield for the trailing twelve months is around 1.54%, less than XLBI's 14.97% yield.

Position	TTM	2025	2024	2023
SETM Sprott Critical Materials ETF	1.54%	1.56%	2.07%	2.47%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	14.97%	7.71%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SETM and XLBI in my portfolio?

SETM and XLBI have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SETM or XLBI?

On fees, XLBI 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, SETM or XLBI?

XLBI is cheaper with a 0.35% expense ratio, compared with 0.65% for SETM.

Which ETF pays a higher dividend yield, SETM or XLBI?

XLBI has the higher dividend yield at 14.97%, compared with 1.54% for SETM.

What is the main difference between SETM and XLBI?

SETM is categorized as Materials, while XLBI is Derivative Income. They also come from different issuers: Sprott and State Street. Their fees differ too: 0.65% for SETM and 0.35% for XLBI.