VZ vs. XLY
VZ (Verizon Communications Inc.) is a stock, while XLY (Consumer Discretionary Select Sector SPDR Fund) is Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Over the past 10 years, VZ returned 4.44%/yr vs 12.78%/yr for XLY. At a 0.36 correlation, their price movements are largely independent.
Performance
VZ vs. XLY - 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 XLY's -2.16% return. Over the past 10 years, VZ has underperformed XLY with an annualized return of 4.44%, while XLY has yielded a comparatively higher 12.78% 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%
XLY
- 1D
- 0.26%
- 1M
- -1.74%
- YTD
- -2.16%
- 6M
- -3.01%
- 1Y
- 11.01%
- 3Y*
- 12.99%
- 5Y*
- 7.00%
- 10Y*
- 12.78%
VZ vs. XLY - 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% |
XLY Consumer Discretionary Select Sector SPDR Fund | -2.16% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.63% | 28.39% | 1.58% | 22.82% |
Correlation
The correlation between VZ and XLY is -0.06, 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 | -0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.08 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Jul 3, 2000 | 0.36 |
The correlation between VZ and XLY shifts across timeframes, from -0.06 (1 year) to 0.36 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VZ vs. XLY — Risk / Return Rank
VZ
XLY
VZ vs. XLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Verizon Communications Inc. (VZ) and Consumer Discretionary Select Sector SPDR Fund (XLY). 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 | XLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.29 | ||
| Sortino ratioReturn per unit of downside risk | +0.60 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.10 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 0.67 | +0.76 |
| Martin ratioReturn relative to average drawdown | 3.06 | 2.05 | +1.00 |
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Drawdowns
VZ vs. XLY - Drawdown Comparison
The maximum VZ drawdown since its inception was -50.66%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for VZ and XLY.
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Drawdown Indicators
| VZ | XLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.66% | -59.05% | +8.39% |
Max Drawdown (1Y)Largest decline over 1 year | -13.32% | -14.98% | +1.66% |
Max Drawdown (3Y)Largest decline over 3 years | -14.93% | -26.01% | +11.08% |
Max Drawdown (5Y)Largest decline over 5 years | -38.38% | -39.67% | +1.29% |
Max Drawdown (10Y)Largest decline over 10 years | -41.21% | -39.67% | -1.54% |
Current DrawdownCurrent decline from peak | -4.96% | -6.17% | +1.21% |
Average DrawdownAverage peak-to-trough decline | -14.82% | -9.55% | -5.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.23% | 4.88% | +1.35% |
Volatility
VZ vs. XLY - Volatility Comparison
Verizon Communications Inc. (VZ) has a higher volatility of 6.87% compared to Consumer Discretionary Select Sector SPDR Fund (XLY) at 6.19%. This indicates that VZ's price experiences larger fluctuations and is considered to be riskier than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VZ | XLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.87% | 6.19% | +0.68% |
Volatility (6M)Calculated over the trailing 6-month period | 17.91% | 13.44% | +4.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.78% | 18.27% | +4.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.66% | 23.83% | -2.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.36% | 22.08% | -1.72% |
Dividends
VZ vs. XLY - Dividend Comparison
VZ's dividend yield for the trailing twelve months is around 5.75%, more than XLY's 0.77% 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% |
XLY Consumer Discretionary Select Sector SPDR Fund | 0.77% | 0.79% | 0.72% | 0.78% | 1.00% | 0.53% | 0.82% | 1.28% | 1.34% | 1.20% | 1.71% | 1.43% |
Frequently Asked Questions
VZ and XLY have a correlation of -0.06, 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 XLY (6.19%). In terms of maximum drawdown, VZ dropped -50.66% vs XLY's -59.05%.
VZ currently has the higher Sharpe Ratio (0.84 vs 0.55), 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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