XLB vs. GLD
XLB (Materials Select Sector SPDR ETF) and GLD (SPDR Gold Shares) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while GLD is a Gold fund tracking the LBMA Gold Price PM. Both are passively managed. Over the past 10 years, XLB returned 11.03%/yr vs 11.30%/yr for GLD. At a 0.20 correlation, their price movements are largely independent. XLB charges 0.13%/yr vs 0.40%/yr for GLD.
Performance
XLB vs. GLD - Performance Comparison
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Returns By Period
In the year-to-date period, XLB achieves a 15.25% return, which is significantly higher than GLD's -6.77% return. Both investments have delivered pretty close results over the past 10 years, with XLB having a 11.03% annualized return and GLD not far ahead at 11.30%.
XLB
- 1D
- 1.33%
- 1M
- 2.05%
- YTD
- 15.25%
- 6M
- 14.02%
- 1Y
- 21.60%
- 3Y*
- 10.91%
- 5Y*
- 6.87%
- 10Y*
- 11.03%
GLD
- 1D
- 0.97%
- 1M
- -10.76%
- YTD
- -6.77%
- 6M
- -10.31%
- 1Y
- 20.30%
- 3Y*
- 27.44%
- 5Y*
- 17.27%
- 10Y*
- 11.30%
XLB vs. GLD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 15.25% | 9.94% | 0.15% | 12.46% | -12.30% | 27.44% | 20.46% | 24.13% | -14.88% | 24.01% |
GLD SPDR Gold Shares | -6.77% | 63.68% | 26.66% | 12.69% | -0.77% | -4.15% | 24.81% | 17.86% | -1.94% | 12.81% |
Correlation
The correlation between XLB and GLD is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.42 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.15 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2004 | 0.20 |
Over the past year, XLB and GLD have become more correlated (0.42) than their long-term average of 0.20, meaning their price movements have been converging.
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Return for Risk
XLB vs. GLD — Risk / Return Rank
XLB
GLD
XLB vs. GLD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and SPDR Gold Shares (GLD). 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 | GLD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.50 | ||
| Sortino ratioReturn per unit of downside risk | +0.74 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.16 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 0.78 | +0.97 |
| Martin ratioReturn relative to average drawdown | 5.32 | 2.17 | +3.15 |
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Drawdowns
XLB vs. GLD - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, which is greater than GLD's maximum drawdown of -45.56%. Use the drawdown chart below to compare losses from any high point for XLB and GLD.
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Drawdown Indicators
| XLB | GLD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.83% | -45.56% | -14.27% |
Max Drawdown (1Y)Largest decline over 1 year | -12.38% | -26.21% | +13.83% |
Max Drawdown (3Y)Largest decline over 3 years | -23.17% | -26.21% | +3.04% |
Max Drawdown (5Y)Largest decline over 5 years | -24.72% | -26.21% | +1.49% |
Max Drawdown (10Y)Largest decline over 10 years | -37.27% | -26.21% | -11.06% |
Current DrawdownCurrent decline from peak | -2.53% | -25.50% | +22.97% |
Average DrawdownAverage peak-to-trough decline | -10.82% | -16.17% | +5.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.07% | 9.38% | -5.31% |
Volatility
XLB vs. GLD - Volatility Comparison
The current volatility for Materials Select Sector SPDR ETF (XLB) is 6.14%, while SPDR Gold Shares (GLD) has a volatility of 8.70%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than GLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB | GLD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.14% | 8.70% | -2.56% |
Volatility (6M)Calculated over the trailing 6-month period | 13.66% | 24.48% | -10.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.52% | 27.71% | -10.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.03% | 18.30% | +0.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.66% | 16.07% | +4.59% |
XLB vs. GLD - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than GLD's 0.40% expense ratio.
Dividends
XLB vs. GLD - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.64%, while GLD has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GLD SPDR Gold Shares | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
XLB Materials Select Sector SPDR ETF | 1.64% | 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 GLD have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GLD has higher volatility (8.70%) compared to XLB (6.14%). In terms of maximum drawdown, XLB dropped -59.83% vs GLD's -45.56%.
On 10-year performance, GLD leads with 11.30% vs 11.03% for XLB. On fees, XLB is cheaper at 0.13% per year. On volatility, XLB has been the lower-risk option at 6.14%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, GLD has performed better with a 11.30% return vs 11.03%. 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 0.40% for GLD.
XLB has the higher dividend yield at 1.64%, compared with 0.00% for GLD.
XLB is categorized as Materials, while GLD is Gold. XLB tracks Materials Select Sector Index, while GLD tracks LBMA Gold Price PM. Their fees differ too: 0.13% for XLB and 0.40% for GLD.
XLB currently has the higher Sharpe Ratio (1.24 vs 0.74), 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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