SETM vs. XLE

Last updated Jun 3, 2026

SETM (Sprott Energy Transition Materials ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both Energy Equities funds - SETM tracks the Nasdaq Sprott Energy Transition Materials Select Index - AUD - Benchmark TR Gross while XLE tracks the Energy Select Sector Index. Both are passively managed. Over the past 3 years, SETM returned 32.73%/yr vs 17.46%/yr for XLE. At a 0.27 correlation, their price movements are largely independent. SETM charges 0.65%/yr vs 0.08%/yr for XLE.

Performance

SETM vs. XLE - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with SETM having a 32.64% return and XLE slightly lower at 32.17%.

SETM

• 1D: 3.36%
• 1M: 3.81%
• YTD: 32.64%
• 6M: 40.31%
• 1Y: 158.67%
• 3Y*: 32.73%
• 5Y*: —
• 10Y*: —

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)

SETM vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SETM Sprott Energy Transition Materials ETF	32.64%	95.27%	-13.24%	-11.03%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	0.89%

Correlation

The correlation between SETM and XLE is -0.04, 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	-0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (All Time) Calculated using the full available price history since Feb 3, 2023	0.27

The correlation between SETM and XLE shifts across timeframes, from -0.04 (1 year) to 0.27 (all time), reflecting how their relationship changes across market environments.

SETM vs. XLE - Sectors Allocation Comparison

Sectors	SETM	XLE
Basic Materials	73.2%	-
Energy	25.8%	100.0%
Industrials	0.9%	-
Technology	0.1%	-
Consumer Defensive	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SETM vs. XLE — Risk / Return Rank

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

SETM

SETM Risk / Return Rank: 86
SETM Sharpe Ratio Rank: 93
SETM Sortino Ratio Rank: 77
SETM Omega Ratio Rank: 79
SETM Calmar Ratio Rank: 92
SETM Martin Ratio Rank: 88

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.

SETM vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sprott Energy Transition Materials ETF (SETM) 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.

	SETM	XLE	Difference
Sharpe ratio Return per unit of total volatility	3.59	2.21	+1.38
Sortino ratio Return per unit of downside risk	3.51	2.84	+0.67
Omega ratio Gain probability vs. loss probability	1.48	1.35	+0.12
Calmar ratio Return relative to maximum drawdown	6.22	3.75	+2.47
Martin ratio Return relative to average drawdown	19.37	10.92	+8.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SETM vs. XLE - Sharpe Ratio Comparison

The current SETM Sharpe Ratio is 3.59, which is higher than the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of SETM 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

	SETM	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.59	2.21	+1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.79	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.35	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.31	+0.33

Drawdowns

SETM vs. XLE - Drawdown Comparison

The maximum SETM drawdown since its inception was -42.81%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for SETM and XLE.

Drawdown Indicators

	SETM	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-42.81%	-71.26%	+28.45%
Max Drawdown (1Y) Largest decline over 1 year	-25.85%	-12.05%	-13.80%
Max Drawdown (3Y) Largest decline over 3 years	-42.81%	-20.14%	-22.67%
Max Drawdown (5Y) Largest decline over 5 years	—	-26.04%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-66.81%	—
Current Drawdown Current decline from peak	-3.35%	-6.15%	+2.80%
Average Drawdown Average peak-to-trough decline	-14.27%	-17.98%	+3.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.30%	4.14%	+4.16%

Volatility

SETM vs. XLE - Volatility Comparison

Sprott Energy Transition Materials ETF (SETM) has a higher volatility of 13.18% compared to State Street Energy Select Sector SPDR ETF (XLE) at 8.25%. This indicates that SETM's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SETM	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.18%	8.25%	+4.93%
Volatility (6M) Calculated over the trailing 6-month period	34.24%	16.58%	+17.66%
Volatility (1Y) Calculated over the trailing 1-year period	44.49%	20.53%	+23.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.52%	26.02%	+10.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.52%	29.59%	+6.93%

SETM vs. XLE - Expense Ratio Comparison

SETM has a 0.65% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

SETM vs. XLE - Dividend Comparison

SETM's dividend yield for the trailing twelve months is around 1.18%, less than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SETM Sprott Energy Transition Materials ETF	1.18%	1.56%	2.07%	2.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SETM and XLE in my portfolio?

SETM and XLE have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SETM or XLE?

SETM has higher volatility (13.18%) compared to XLE (8.25%). In terms of maximum drawdown, SETM dropped -42.81% vs XLE's -71.26%.

Which ETF is better, SETM or XLE?

On 3-year performance, SETM leads with 32.73% vs 17.46% for XLE. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 8.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SETM or XLE?

Over the 3-year period, SETM has performed better with a 32.73% return vs 17.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SETM or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.65% for SETM.

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

XLE has the higher dividend yield at 2.54%, compared with 1.18% for SETM.

What is the main difference between SETM and XLE?

SETM tracks Nasdaq Sprott Energy Transition Materials Select Index - AUD - Benchmark TR Gross, while XLE tracks Energy Select Sector Index. They also come from different issuers: Sprott and State Street. Their fees differ too: 0.65% for SETM and 0.08% for XLE.

Which has better risk-adjusted returns?

SETM currently has the higher Sharpe Ratio (3.59 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.