XLB vs. DGS
XLB (Materials Select Sector SPDR ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, XLB returned 10.54%/yr vs 10.14%/yr for DGS. A 0.67 correlation means they provide meaningful diversification when combined. XLB charges 0.13%/yr vs 0.58%/yr for DGS.
Performance
XLB vs. DGS - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with XLB having a 15.57% return and DGS slightly lower at 14.94%. Both investments have delivered pretty close results over the past 10 years, with XLB having a 10.54% annualized return and DGS not far behind at 10.14%.
XLB
- 1D
- 1.87%
- 1M
- 0.99%
- YTD
- 15.57%
- 6M
- 16.68%
- 1Y
- 21.77%
- 3Y*
- 10.88%
- 5Y*
- 6.01%
- 10Y*
- 10.54%
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
XLB vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 15.57% | 9.94% | 0.15% | 12.46% | -12.30% | 27.44% | 20.46% | 24.13% | -14.88% | 24.01% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between XLB and DGS is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | 0.67 |
The correlation between XLB and DGS has been stable across timeframes, ranging from 0.59 to 0.67 - a consistent structural relationship.
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Return for Risk
XLB vs. DGS — Risk / Return Rank
XLB
DGS
XLB vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| XLB | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.27 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 2.38 | -0.73 |
| Martin ratioReturn relative to average drawdown | 5.05 | 7.84 | -2.79 |
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Drawdowns
XLB vs. DGS - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, roughly equal to the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for XLB and DGS.
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Drawdown Indicators
| XLB | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.83% | -61.83% | +2.00% |
Max Drawdown (1Y)Largest decline over 1 year | -12.38% | -10.06% | -2.32% |
Max Drawdown (3Y)Largest decline over 3 years | -23.17% | -19.31% | -3.86% |
Max Drawdown (5Y)Largest decline over 5 years | -24.72% | -24.86% | +0.14% |
Max Drawdown (10Y)Largest decline over 10 years | -37.27% | -44.08% | +6.81% |
Current DrawdownCurrent decline from peak | -2.25% | -1.05% | -1.20% |
Average DrawdownAverage peak-to-trough decline | -10.83% | -12.57% | +1.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.04% | 3.05% | +0.99% |
Volatility
XLB vs. DGS - Volatility Comparison
Materials Select Sector SPDR ETF (XLB) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) have volatilities of 7.05% and 7.30%, 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.
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Volatility by Period
| XLB | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.05% | 7.30% | -0.25% |
Volatility (6M)Calculated over the trailing 6-month period | 13.58% | 14.27% | -0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.49% | 16.60% | +0.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.06% | 15.08% | +3.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.70% | 17.39% | +3.31% |
XLB vs. DGS - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
XLB vs. DGS - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.68%, less than DGS's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
XLB Materials Select Sector SPDR ETF | 1.68% | 1.92% | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% |
Frequently Asked Questions
XLB and DGS have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DGS has higher volatility (7.30%) compared to XLB (7.05%). In terms of maximum drawdown, XLB dropped -59.83% vs DGS's -61.83%.
On 10-year performance, XLB leads with 10.54% vs 10.14% for DGS. On fees, XLB is cheaper at 0.13% per year. On volatility, XLB has been the lower-risk option at 7.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLB has performed better with a 10.54% return vs 10.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLB is cheaper with a 0.13% expense ratio, compared with 0.58% for DGS.
DGS has the higher dividend yield at 3.20%, compared with 1.68% for XLB.
XLB is categorized as Materials, while DGS is Emerging Markets Diversified. XLB tracks Materials Select Sector Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: State Street and WisdomTree. Their fees differ too: 0.13% for XLB and 0.58% for DGS.
DGS currently has the higher Sharpe Ratio (1.44 vs 1.17), 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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