VZ vs. XLI
VZ (Verizon Communications Inc.) is a stock, while XLI (Industrial Select Sector SPDR Fund) is Industrials Equities fund tracking the Industrial Select Sector Index. Over the past 10 years, VZ returned 4.44%/yr vs 14.15%/yr for XLI. At a 0.41 correlation, their price movements are largely independent.
Performance
VZ vs. XLI - 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 XLI's 13.90% return. Over the past 10 years, VZ has underperformed XLI with an annualized return of 4.44%, while XLI has yielded a comparatively higher 14.15% annualized 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%
XLI
- 1D
- 0.59%
- 1M
- 0.96%
- YTD
- 13.90%
- 6M
- 13.10%
- 1Y
- 25.17%
- 3Y*
- 20.87%
- 5Y*
- 12.93%
- 10Y*
- 14.15%
VZ vs. XLI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 21.97% | 8.86% | 13.14% | 2.71% | -20.02% | -7.55% | -0.13% | 13.83% | 11.26% | 3.97% |
XLI Industrial Select Sector SPDR Fund | 13.90% | 19.35% | 17.31% | 18.13% | -5.57% | 21.08% | 10.91% | 29.08% | -13.25% | 23.98% |
Correlation
The correlation between VZ and XLI 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 | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Jul 3, 2000 | 0.41 |
Over the past year, the correlation between VZ and XLI has dropped to 0.04 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.
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Return for Risk
VZ vs. XLI — Risk / Return Rank
VZ
XLI
VZ vs. XLI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Verizon Communications Inc. (VZ) 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.
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 | XLI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.66 | ||
| Sortino ratioReturn per unit of downside risk | -0.68 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.26 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 1.98 | -0.55 |
| Martin ratioReturn relative to average drawdown | 3.06 | 7.82 | -4.76 |
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Drawdowns
VZ vs. XLI - Drawdown Comparison
The maximum VZ drawdown since its inception was -50.66%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for VZ and XLI.
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Drawdown Indicators
| VZ | XLI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.66% | -62.26% | +11.60% |
Max Drawdown (1Y)Largest decline over 1 year | -13.32% | -12.21% | -1.11% |
Max Drawdown (3Y)Largest decline over 3 years | -14.93% | -18.49% | +3.56% |
Max Drawdown (5Y)Largest decline over 5 years | -38.38% | -21.64% | -16.74% |
Max Drawdown (10Y)Largest decline over 10 years | -41.21% | -42.33% | +1.12% |
Current DrawdownCurrent decline from peak | -4.96% | -1.24% | -3.72% |
Average DrawdownAverage peak-to-trough decline | -14.82% | -9.20% | -5.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.23% | 3.09% | +3.14% |
Volatility
VZ vs. XLI - Volatility Comparison
Verizon Communications Inc. (VZ) has a higher volatility of 6.87% compared to Industrial Select Sector SPDR Fund (XLI) at 6.22%. This indicates that VZ's price experiences larger fluctuations and is considered to be riskier 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
| VZ | XLI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.87% | 6.22% | +0.65% |
Volatility (6M)Calculated over the trailing 6-month period | 17.91% | 13.59% | +4.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.78% | 16.17% | +6.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.66% | 17.55% | +4.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.36% | 20.04% | +0.32% |
Dividends
VZ vs. XLI - Dividend Comparison
VZ's dividend yield for the trailing twelve months is around 5.75%, more than XLI's 1.16% 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% |
XLI Industrial Select Sector SPDR Fund | 1.16% | 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
VZ and XLI 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.
VZ has higher volatility (6.87%) compared to XLI (6.22%). In terms of maximum drawdown, VZ dropped -50.66% vs XLI's -62.26%.
XLI currently has the higher Sharpe Ratio (1.50 vs 0.84), 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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