VRTIX vs. XLB

Last updated Jun 24, 2026

VRTIX (Vanguard Russell 2000 Index Fund Institutional Shares) and XLB (Materials Select Sector SPDR ETF) are both funds - VRTIX is a Small Cap Blend Equities fund managed by Vanguard, while XLB is a Materials fund tracking the Materials Select Sector Index. Over the past 10 years, VRTIX returned 11.86%/yr vs 10.44%/yr for XLB. A 0.76 correlation means they provide meaningful diversification when combined. VRTIX charges 0.08%/yr vs 0.13%/yr for XLB.

Performance

VRTIX vs. XLB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 Index Fund Institutional Shares (VRTIX) and Materials Select Sector SPDR ETF (XLB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VRTIX achieves a 21.75% return, which is significantly higher than XLB's 13.09% return. Over the past 10 years, VRTIX has outperformed XLB with an annualized return of 11.86%, while XLB has yielded a comparatively lower 10.44% annualized return.

VRTIX

• 1D: 0.83%
• 1M: 4.84%
• YTD: 21.75%
• 6M: 18.98%
• 1Y: 42.76%
• 3Y*: 19.74%
• 5Y*: 6.88%
• 10Y*: 11.86%

XLB

• 1D: -1.45%
• 1M: 1.53%
• YTD: 13.09%
• 6M: 12.10%
• 1Y: 19.16%
• 3Y*: 10.60%
• 5Y*: 6.47%
• 10Y*: 10.44%

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

VRTIX vs. XLB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VRTIX Vanguard Russell 2000 Index Fund Institutional Shares	21.75%	12.55%	11.59%	17.01%	-20.40%	14.71%	20.46%	25.60%	-10.92%	14.77%
XLB Materials Select Sector SPDR ETF	13.09%	9.94%	0.15%	12.46%	-12.30%	27.44%	20.46%	24.13%	-14.88%	24.01%

Correlation

The correlation between VRTIX and XLB is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.76

The correlation between VRTIX and XLB has been stable across timeframes, ranging from 0.67 to 0.76 - a consistent structural relationship.

Return for Risk

VRTIX vs. XLB — Risk / Return Rank

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

VRTIX

VRTIX Risk / Return Rank: 72
VRTIX Sharpe Ratio Rank: 71
VRTIX Sortino Ratio Rank: 65
VRTIX Omega Ratio Rank: 53
VRTIX Calmar Ratio Rank: 87
VRTIX Martin Ratio Rank: 83

XLB

XLB Risk / Return Rank: 31
XLB Sharpe Ratio Rank: 32
XLB Sortino Ratio Rank: 31
XLB Omega Ratio Rank: 29
XLB Calmar Ratio Rank: 32
XLB Martin Ratio Rank: 33

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.

VRTIX vs. XLB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 Index Fund Institutional Shares (VRTIX) and Materials Select Sector SPDR ETF (XLB). 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.

	VRTIX	XLB	Difference
Sharpe ratio: Return per unit of total volatility	2.26	1.10	+1.16
Sortino ratio: Return per unit of downside risk	3.08	1.64	+1.44
Omega ratio: Gain probability vs. loss probability	1.37	1.19	+0.17
Calmar ratio: Return relative to maximum drawdown	4.05	1.55	+2.50
Martin ratio: Return relative to average drawdown	14.34	4.73	+9.61

VRTIX vs. XLB - Sharpe Ratio Comparison

The current VRTIX Sharpe Ratio is 2.26, which is higher than the XLB Sharpe Ratio of 1.10. The chart below compares the historical Sharpe Ratios of VRTIX and XLB, 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

VRTIX vs. XLB - Drawdown Comparison

The maximum VRTIX drawdown since its inception was -41.69%, smaller than the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for VRTIX and XLB.

Drawdown Indicators

	VRTIX	XLB	Difference
Max Drawdown Largest peak-to-trough decline	-41.69%	-59.83%	+18.14%
Max Drawdown (1Y) Largest decline over 1 year	-10.99%	-12.38%	+1.39%
Max Drawdown (3Y) Largest decline over 3 years	-27.72%	-23.17%	-4.55%
Max Drawdown (5Y) Largest decline over 5 years	-31.98%	-24.72%	-7.26%
Max Drawdown (10Y) Largest decline over 10 years	-41.69%	-37.27%	-4.42%
Current Drawdown Current decline from peak	0.00%	-4.35%	+4.35%
Average Drawdown Average peak-to-trough decline	-8.38%	-10.82%	+2.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	4.06%	-0.96%

Volatility

VRTIX vs. XLB - Volatility Comparison

Vanguard Russell 2000 Index Fund Institutional Shares (VRTIX) and Materials Select Sector SPDR ETF (XLB) have volatilities of 6.41% and 6.15%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VRTIX	XLB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.41%	6.15%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	14.33%	13.64%	+0.69%
Volatility (1Y) Calculated over the trailing 1-year period	19.74%	17.51%	+2.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.69%	19.02%	+3.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.51%	20.67%	+2.84%

VRTIX vs. XLB - Expense Ratio Comparison

VRTIX has a 0.08% expense ratio, which is lower than XLB's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VRTIX vs. XLB - Dividend Comparison

VRTIX's dividend yield for the trailing twelve months is around 1.09%, less than XLB's 1.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VRTIX Vanguard Russell 2000 Index Fund Institutional Shares	1.09%	1.00%	1.23%	1.46%	1.50%	1.05%	1.14%	1.36%	1.49%	1.24%	1.33%	1.31%
XLB Materials Select Sector SPDR ETF	1.67%	1.92%	1.92%	2.00%	2.26%	1.62%	1.72%	1.98%	2.20%	1.66%	1.95%	2.24%

Frequently Asked Questions

Can I hold both VRTIX and XLB in my portfolio?

VRTIX and XLB have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VRTIX or XLB?

VRTIX has higher volatility (6.41%) compared to XLB (6.15%). In terms of maximum drawdown, VRTIX dropped -41.69% vs XLB's -59.83%.

Which has better risk-adjusted returns?

VRTIX currently has the higher Sharpe Ratio (2.26 vs 1.10), 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.