VZ vs. XLC
VZ (Verizon Communications Inc.) is a stock, while XLC (Communication Services Select Sector SPDR Fund) is Communications Equities fund tracking the S&P Communication Services Select Sector Index. Over the past 5 years, VZ returned 2.74%/yr vs 8.03%/yr for XLC. At a 0.24 correlation, their price movements are largely independent.
Performance
VZ vs. XLC - Performance Comparison
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Returns By Period
In the year-to-date period, VZ achieves a 21.97% return, which is significantly higher than XLC's -4.85% return.
VZ
- 1D
- 2.49%
- 1M
- 2.23%
- YTD
- 21.97%
- 6M
- 21.50%
- 1Y
- 19.39%
- 3Y*
- 18.39%
- 5Y*
- 2.74%
- 10Y*
- 4.44%
XLC
- 1D
- -0.42%
- 1M
- -4.66%
- YTD
- -4.85%
- 6M
- -3.59%
- 1Y
- 10.19%
- 3Y*
- 21.60%
- 5Y*
- 8.03%
- 10Y*
- —
VZ vs. XLC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 21.97% | 8.86% | 13.14% | 2.71% | -20.02% | -7.55% | -0.13% | 13.83% | 21.16% |
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 VZ and XLC is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.24 |
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Return for Risk
VZ vs. XLC — Risk / Return Rank
VZ
XLC
VZ vs. XLC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Verizon Communications Inc. (VZ) 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.
| VZ | XLC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.15 | ||
| Sortino ratioReturn per unit of downside risk | +0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.12 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 0.86 | +0.57 |
| Martin ratioReturn relative to average drawdown | 3.06 | 2.73 | +0.32 |
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Drawdowns
VZ vs. XLC - Drawdown Comparison
The maximum VZ drawdown since its inception was -50.66%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for VZ and XLC.
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Drawdown Indicators
| VZ | XLC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.66% | -46.65% | -4.01% |
Max Drawdown (1Y)Largest decline over 1 year | -13.32% | -10.57% | -2.75% |
Max Drawdown (3Y)Largest decline over 3 years | -14.93% | -17.97% | +3.04% |
Max Drawdown (5Y)Largest decline over 5 years | -38.38% | -46.65% | +8.27% |
Max Drawdown (10Y)Largest decline over 10 years | -41.21% | — | — |
Current DrawdownCurrent decline from peak | -4.96% | -6.72% | +1.76% |
Average DrawdownAverage peak-to-trough decline | -14.82% | -10.58% | -4.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.23% | 3.33% | +2.90% |
Volatility
VZ vs. XLC - Volatility Comparison
Verizon Communications Inc. (VZ) has a higher volatility of 6.87% compared to Communication Services Select Sector SPDR Fund (XLC) at 3.57%. This indicates that VZ's price experiences larger fluctuations and is considered to be riskier 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
| VZ | XLC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.87% | 3.57% | +3.30% |
Volatility (6M)Calculated over the trailing 6-month period | 17.91% | 9.65% | +8.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.78% | 13.28% | +9.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.66% | 20.68% | +0.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.36% | 22.17% | -1.81% |
Dividends
VZ vs. XLC - Dividend Comparison
VZ's dividend yield for the trailing twelve months is around 5.75%, more than XLC's 1.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 5.75% | 6.68% | 6.68% | 6.96% | 6.53% | 4.85% | 4.21% | 3.95% | 4.22% | 4.39% | 4.26% | 4.79% |
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
VZ and XLC have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VZ has higher volatility (6.87%) compared to XLC (3.57%). In terms of maximum drawdown, VZ dropped -50.66% vs XLC's -46.65%.
VZ currently has the higher Sharpe Ratio (0.84 vs 0.69), 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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