TLT vs. XLI
TLT (iShares 20+ Year Treasury Bond ETF) and XLI (Industrial 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 XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, TLT returned -1.85%/yr vs 13.86%/yr for XLI. At a correlation of -0.26, they often move in opposite directions. TLT charges 0.15%/yr vs 0.08%/yr for XLI.
Performance
TLT vs. XLI - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -1.08% return, which is significantly lower than XLI's 12.25% return. Over the past 10 years, TLT has underperformed XLI with an annualized return of -1.85%, while XLI has yielded a comparatively higher 13.86% annualized return.
TLT
- 1D
- -0.52%
- 1M
- -1.31%
- YTD
- -1.08%
- 6M
- -1.51%
- 1Y
- 3.67%
- 3Y*
- -2.05%
- 5Y*
- -6.70%
- 10Y*
- -1.85%
XLI
- 1D
- -0.32%
- 1M
- 0.25%
- YTD
- 12.25%
- 6M
- 13.16%
- 1Y
- 21.42%
- 3Y*
- 21.04%
- 5Y*
- 12.54%
- 10Y*
- 13.86%
TLT vs. XLI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -1.08% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
XLI Industrial Select Sector SPDR Fund | 12.25% | 19.35% | 17.31% | 18.13% | -5.57% | 21.08% | 10.91% | 29.08% | -13.25% | 23.98% |
Correlation
The correlation between TLT and XLI is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.17 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.12 |
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002 | -0.26 |
The correlation between TLT and XLI shifts across timeframes, from -0.26 (all time) to 0.19 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
TLT vs. XLI — Risk / Return Rank
TLT
XLI
TLT vs. XLI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and Industrial Select Sector SPDR Fund (XLI). 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.
| TLT | XLI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.01 | ||
| Sortino ratioReturn per unit of downside risk | -1.44 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.24 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 0.49 | 1.76 | -1.28 |
| Martin ratioReturn relative to average drawdown | 1.19 | 6.97 | -5.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TLT | XLI | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.38 | 1.39 | -1.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.42 | 0.72 | -1.15 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.12 | 0.70 | -0.82 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.45 | -0.20 |
Drawdowns
TLT vs. XLI - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for TLT and XLI.
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Drawdown Indicators
| TLT | XLI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -62.26% | +13.91% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -12.21% | +4.63% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -18.49% | -0.69% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -21.64% | -22.06% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -42.33% | -6.02% |
Current DrawdownCurrent decline from peak | -40.92% | -2.67% | -38.25% |
Average DrawdownAverage peak-to-trough decline | -13.83% | -9.20% | -4.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.08% | 3.08% | 0.00% |
Volatility
TLT vs. XLI - Volatility Comparison
The current volatility for iShares 20+ Year Treasury Bond ETF (TLT) is 2.65%, while Industrial Select Sector SPDR Fund (XLI) has a volatility of 3.98%. This indicates that TLT experiences smaller price fluctuations and is considered to be less risky than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | XLI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.65% | 3.98% | -1.33% |
Volatility (6M)Calculated over the trailing 6-month period | 6.51% | 12.84% | -6.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.60% | 15.47% | -5.87% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.85% | 17.43% | -1.58% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.91% | 19.99% | -5.08% |
TLT vs. XLI - Expense Ratio Comparison
TLT has a 0.15% expense ratio, which is higher than XLI's 0.08% 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. XLI - Dividend Comparison
TLT's dividend yield for the trailing twelve months is around 4.63%, more than XLI's 1.18% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.63% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
XLI Industrial Select Sector SPDR Fund | 1.18% | 1.29% | 1.44% | 1.63% | 1.63% | 1.25% | 1.55% | 1.94% | 2.15% | 1.77% | 2.07% | 2.15% |
Frequently Asked Questions
TLT and XLI have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLI has higher volatility (3.98%) compared to TLT (2.65%). In terms of maximum drawdown, TLT dropped -48.35% vs XLI's -62.26%.
On 10-year performance, XLI leads with 13.86% vs -1.85% for TLT. On fees, XLI is cheaper at 0.08% per year. On volatility, TLT has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLI has performed better with a 13.86% return vs -1.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLI is cheaper with a 0.08% expense ratio, compared with 0.15% for TLT.
TLT has the higher dividend yield at 4.63%, compared with 1.18% for XLI.
TLT is categorized as Government Bonds, while XLI is Industrials Equities. TLT tracks ICE U.S. Treasury 20+ Year Bond Index, while XLI tracks Industrial Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.15% for TLT and 0.08% for XLI.
XLI currently has the higher Sharpe Ratio (1.39 vs 0.38), 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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