XBI vs. QLC

Last updated Jun 16, 2026

XBI (SPDR S&P Biotech ETF) and QLC (FlexShares US Quality Large Cap Index Fund) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while QLC is a Large Cap Blend Equities fund tracking the Northern Trust Quality Large Cap Index. Both are passively managed. Over the past 10 years, XBI returned 9.98%/yr vs 15.08%/yr for QLC. A 0.51 correlation means they provide meaningful diversification when combined. XBI charges 0.35%/yr vs 0.25%/yr for QLC.

Performance

XBI vs. QLC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Biotech ETF (XBI) and FlexShares US Quality Large Cap Index Fund (QLC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XBI having a 11.87% return and QLC slightly higher at 11.97%. Over the past 10 years, XBI has underperformed QLC with an annualized return of 9.98%, while QLC has yielded a comparatively higher 15.08% annualized return.

XBI

• 1D: 1.95%
• 1M: 4.37%
• YTD: 11.87%
• 6M: 11.41%
• 1Y: 63.76%
• 3Y*: 16.08%
• 5Y*: 0.52%
• 10Y*: 9.98%

QLC

• 1D: 1.63%
• 1M: 3.02%
• YTD: 11.97%
• 6M: 12.35%
• 1Y: 33.81%
• 3Y*: 24.25%
• 5Y*: 15.50%
• 10Y*: 15.08%

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

XBI vs. QLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XBI SPDR S&P Biotech ETF	11.87%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%
QLC FlexShares US Quality Large Cap Index Fund	11.97%	23.26%	26.71%	26.02%	-17.21%	28.46%	13.64%	24.51%	-8.12%	21.73%

Correlation

The correlation between XBI and QLC is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Sep 24, 2015	0.51

The correlation between XBI and QLC has been stable across timeframes, ranging from 0.50 to 0.56 - a consistent structural relationship.

XBI vs. QLC - Sectors Allocation Comparison

Sectors	XBI	QLC
Healthcare	99.7%	9.6%
Financial Services	0.3%	13.2%
Basic Materials	0.2%	2.0%
Communication Services	-	13.0%
Consumer Cyclical	-	7.8%
Consumer Defensive	-	3.0%
Energy	-	2.0%
Industrials	-	6.3%
Real Estate	-	2.1%
Technology	-	37.8%
Utilities	-	3.1%

Return for Risk

XBI vs. QLC — Risk / Return Rank

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

XBI

XBI Risk / Return Rank: 86
XBI Sharpe Ratio Rank: 85
XBI Sortino Ratio Rank: 83
XBI Omega Ratio Rank: 74
XBI Calmar Ratio Rank: 94
XBI Martin Ratio Rank: 91

QLC

QLC Risk / Return Rank: 86
QLC Sharpe Ratio Rank: 88
QLC Sortino Ratio Rank: 87
QLC Omega Ratio Rank: 86
QLC Calmar Ratio Rank: 80
QLC Martin Ratio Rank: 88

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. QLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) and FlexShares US Quality Large Cap Index Fund (QLC). 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	QLC	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.64	-0.19
Sortino ratio: Return per unit of downside risk	3.29	3.58	-0.29
Omega ratio: Gain probability vs. loss probability	1.39	1.47	-0.08
Calmar ratio: Return relative to maximum drawdown	6.59	3.84	+2.75
Martin ratio: Return relative to average drawdown	19.47	17.56	+1.92

XBI vs. QLC - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.45, which is comparable to the QLC Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of XBI and QLC, 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. QLC - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, which is greater than QLC's maximum drawdown of -35.86%. Use the drawdown chart below to compare losses from any high point for XBI and QLC.

Drawdown Indicators

	XBI	QLC	Difference
Max Drawdown Largest peak-to-trough decline	-63.89%	-35.86%	-28.03%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-8.84%	-0.88%
Max Drawdown (3Y) Largest decline over 3 years	-32.99%	-18.49%	-14.50%
Max Drawdown (5Y) Largest decline over 5 years	-54.71%	-23.81%	-30.90%
Max Drawdown (10Y) Largest decline over 10 years	-63.89%	-35.86%	-28.03%
Current Drawdown Current decline from peak	-21.16%	-0.22%	-20.94%
Average Drawdown Average peak-to-trough decline	-20.93%	-4.53%	-16.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	1.93%	+1.36%

Volatility

XBI vs. QLC - Volatility Comparison

SPDR S&P Biotech ETF (XBI) has a higher volatility of 10.55% compared to FlexShares US Quality Large Cap Index Fund (QLC) at 4.70%. This indicates that XBI's price experiences larger fluctuations and is considered to be riskier than QLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XBI	QLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.55%	4.70%	+5.85%
Volatility (6M) Calculated over the trailing 6-month period	20.83%	10.29%	+10.54%
Volatility (1Y) Calculated over the trailing 1-year period	26.18%	12.90%	+13.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.22%	16.92%	+15.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.03%	18.46%	+13.57%

XBI vs. QLC - Expense Ratio Comparison

XBI has a 0.35% expense ratio, which is higher than QLC's 0.25% expense ratio.

Dividends

XBI vs. QLC - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.32%, less than QLC's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QLC FlexShares US Quality Large Cap Index Fund	0.87%	0.94%	1.03%	1.26%	1.46%	0.96%	1.40%	1.91%	1.82%	1.29%	1.80%	0.64%
XBI SPDR S&P Biotech ETF	0.32%	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 QLC in my portfolio?

XBI and QLC have a correlation of 0.50, 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 QLC?

XBI has higher volatility (10.55%) compared to QLC (4.70%). In terms of maximum drawdown, XBI dropped -63.89% vs QLC's -35.86%.

Which ETF is better, XBI or QLC?

On 10-year performance, QLC leads with 15.08% vs 9.98% for XBI. On fees, QLC is cheaper at 0.25% per year. On volatility, QLC has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XBI or QLC?

Over the 10-year period, QLC has performed better with a 15.08% return vs 9.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XBI or QLC?

QLC is cheaper with a 0.25% expense ratio, compared with 0.35% for XBI.

Which ETF pays a higher dividend yield, XBI or QLC?

QLC has the higher dividend yield at 0.87%, compared with 0.32% for XBI.

What is the main difference between XBI and QLC?

XBI is categorized as Health & Biotech Equities, while QLC is Large Cap Blend Equities. XBI tracks S&P Biotechnology Select Industry Index, while QLC tracks Northern Trust Quality Large Cap Index. They also come from different issuers: State Street and Northern Trust. Their fees differ too: 0.35% for XBI and 0.25% for QLC.

Which has better risk-adjusted returns?

QLC currently has the higher Sharpe Ratio (2.64 vs 2.45), 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.