XBI vs. MSFT

Last updated Jun 14, 2026

XBI (SPDR S&P Biotech ETF) is Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, XBI returned 9.55%/yr vs 24.39%/yr for MSFT. At a 0.41 correlation, their price movements are largely independent.

Performance

XBI vs. MSFT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Biotech ETF (XBI) and Microsoft Corporation (MSFT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XBI achieves a 9.73% return, which is significantly higher than MSFT's -18.85% return. Over the past 10 years, XBI has underperformed MSFT with an annualized return of 9.55%, while MSFT has yielded a comparatively higher 24.39% annualized return.

XBI

• 1D: 0.79%
• 1M: -0.79%
• YTD: 9.73%
• 6M: 9.02%
• 1Y: 60.62%
• 3Y*: 14.23%
• 5Y*: -0.20%
• 10Y*: 9.55%

MSFT

• 1D: 0.10%
• 1M: -7.19%
• YTD: -18.85%
• 6M: -17.98%
• 1Y: -17.07%
• 3Y*: 6.16%
• 5Y*: 9.56%
• 10Y*: 24.39%

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

XBI vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XBI SPDR S&P Biotech ETF	9.73%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%
MSFT Microsoft Corporation	-18.85%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between XBI and MSFT is 0.09, 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	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.22
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.40
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.41

Over the past year, the correlation between XBI and MSFT has dropped to 0.09 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.

Return for Risk

XBI vs. MSFT — Risk / Return Rank

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

XBI

XBI Risk / Return Rank: 84
XBI Sharpe Ratio Rank: 82
XBI Sortino Ratio Rank: 81
XBI Omega Ratio Rank: 73
XBI Calmar Ratio Rank: 94
XBI Martin Ratio Rank: 90

MSFT

MSFT Risk / Return Rank: 17
MSFT Sharpe Ratio Rank: 13
MSFT Sortino Ratio Rank: 15
MSFT Omega Ratio Rank: 14
MSFT Calmar Ratio Rank: 24
MSFT Martin Ratio Rank: 20

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.

XBI vs. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) and Microsoft Corporation (MSFT). 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.

	XBI	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	2.28	-0.70	+2.98
Sortino ratio: Return per unit of downside risk	3.11	-0.84	+3.95
Omega ratio: Gain probability vs. loss probability	1.37	0.89	+0.48
Calmar ratio: Return relative to maximum drawdown	6.12	-0.53	+6.64
Martin ratio: Return relative to average drawdown	18.07	-1.08	+19.15

XBI vs. MSFT - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.28, which is higher than the MSFT Sharpe Ratio of -0.70. The chart below compares the historical Sharpe Ratios of XBI and MSFT, 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

XBI vs. MSFT - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for XBI and MSFT.

Drawdown Indicators

	XBI	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-63.89%	-69.38%	+5.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-33.91%	+24.19%
Max Drawdown (3Y) Largest decline over 3 years	-32.99%	-33.91%	+0.92%
Max Drawdown (5Y) Largest decline over 5 years	-54.71%	-37.15%	-17.56%
Max Drawdown (10Y) Largest decline over 10 years	-63.89%	-37.15%	-26.74%
Current Drawdown Current decline from peak	-22.67%	-27.46%	+4.79%
Average Drawdown Average peak-to-trough decline	-20.93%	-21.78%	+0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	16.48%	-13.18%

Volatility

XBI vs. MSFT - Volatility Comparison

SPDR S&P Biotech ETF (XBI) and Microsoft Corporation (MSFT) have volatilities of 10.39% and 10.52%, 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

	XBI	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.39%	10.52%	-0.13%
Volatility (6M) Calculated over the trailing 6-month period	20.76%	22.31%	-1.55%
Volatility (1Y) Calculated over the trailing 1-year period	26.09%	25.42%	+0.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.21%	26.66%	+5.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.01%	27.06%	+4.95%

Dividends

XBI vs. MSFT - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.33%, less than MSFT's 0.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.91%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
XBI SPDR S&P Biotech ETF	0.33%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%

Frequently Asked Questions

Can I hold both XBI and MSFT in my portfolio?

XBI and MSFT have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XBI or MSFT?

MSFT has higher volatility (10.52%) compared to XBI (10.39%). In terms of maximum drawdown, XBI dropped -63.89% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

XBI currently has the higher Sharpe Ratio (2.28 vs -0.70), 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.