TLT vs. XLC
TLT (iShares 20+ Year Treasury Bond ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, TLT returned -6.53%/yr vs 8.03%/yr for XLC. At a correlation of -0.02, they often move in opposite directions. TLT charges 0.15%/yr vs 0.13%/yr for XLC.
Performance
TLT vs. XLC - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a 0.27% return, which is significantly higher than XLC's -4.85% return.
TLT
- 1D
- -0.24%
- 1M
- 1.40%
- YTD
- 0.27%
- 6M
- 0.45%
- 1Y
- 3.88%
- 3Y*
- -1.38%
- 5Y*
- -6.53%
- 10Y*
- -1.75%
XLC
- 1D
- -0.42%
- 1M
- -4.66%
- YTD
- -4.85%
- 6M
- -3.59%
- 1Y
- 10.19%
- 3Y*
- 21.60%
- 5Y*
- 8.03%
- 10Y*
- —
TLT vs. XLC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 0.27% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | 2.67% |
XLC Communication Services Select Sector SPDR Fund | -4.85% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
Correlation
The correlation between TLT and XLC is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.16 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | -0.02 |
The correlation between TLT and XLC shifts across timeframes, from -0.02 (all time) to 0.25 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. XLC — Risk / Return Rank
TLT
XLC
TLT vs. XLC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Communication Services Select Sector SPDR Fund (XLC). 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.
| TLT | XLC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.39 | ||
| Sortino ratioReturn per unit of downside risk | -0.57 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.12 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.38 | 0.86 | -0.48 |
| Martin ratioReturn relative to average drawdown | 0.92 | 2.73 | -1.81 |
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Drawdowns
TLT vs. XLC - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, roughly equal to the maximum XLC drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for TLT and XLC.
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Drawdown Indicators
| TLT | XLC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -46.65% | -1.70% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -10.57% | +2.99% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -17.97% | -1.21% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -46.65% | +2.95% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | — | — |
Current DrawdownCurrent decline from peak | -40.12% | -6.72% | -33.40% |
Average DrawdownAverage peak-to-trough decline | -13.84% | -10.58% | -3.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.14% | 3.33% | -0.19% |
Volatility
TLT vs. XLC - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.83%, while Communication Services Select Sector SPDR Fund (XLC) has a volatility of 3.57%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | XLC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.83% | 3.57% | -0.74% |
Volatility (6M)Calculated over the trailing 6-month period | 6.64% | 9.65% | -3.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.68% | 13.28% | -3.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 20.68% | -4.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 22.17% | -7.26% |
TLT vs. XLC - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is higher than XLC's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
TLT vs. XLC - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.56%, more than XLC's 1.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.56% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
XLC Communication Services Select Sector SPDR Fund | 1.25% | 1.13% | 0.99% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TLT and XLC have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLC has higher volatility (3.57%) compared to TLT (2.83%). In terms of maximum drawdown, TLT dropped -48.35% vs XLC's -46.65%.
On 5-year performance, XLC leads with 8.03% vs -6.53% for TLT. On fees, XLC is cheaper at 0.13% per year. On volatility, TLT has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XLC has performed better with a 8.03% return vs -6.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLC is cheaper with a 0.13% expense ratio, compared with 0.15% for TLT.
TLT has the higher dividend yield at 4.56%, compared with 1.25% for XLC.
TLT is categorized as Government Bonds, while XLC is Communications Equities. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for TLT and 0.13% for XLC.
XLC currently has the higher Sharpe Ratio (0.69 vs 0.30), 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.
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