XLB vs. GUNR

Last updated Jun 4, 2026

XLB (Materials Select Sector SPDR ETF) and GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while GUNR is a Commodity Producers Equities fund tracking the Morningstar Global Upstream Natural Resources Index. Both are passively managed. Over the past 10 years, XLB returned 10.23%/yr vs 11.17%/yr for GUNR. A 0.77 correlation means they provide meaningful diversification when combined. XLB charges 0.13%/yr vs 0.46%/yr for GUNR.

Performance

XLB vs. GUNR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLB achieves a 14.35% return, which is significantly lower than GUNR's 19.20% return. Over the past 10 years, XLB has underperformed GUNR with an annualized return of 10.23%, while GUNR has yielded a comparatively higher 11.17% annualized return.

XLB

• 1D: 0.21%
• 1M: 1.93%
• YTD: 14.35%
• 6M: 17.15%
• 1Y: 19.99%
• 3Y*: 11.71%
• 5Y*: 5.35%
• 10Y*: 10.23%

GUNR

• 1D: -0.69%
• 1M: 0.04%
• YTD: 19.20%
• 6M: 21.67%
• 1Y: 41.45%
• 3Y*: 14.42%
• 5Y*: 9.93%
• 10Y*: 11.17%

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

XLB vs. GUNR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLB Materials Select Sector SPDR ETF	14.35%	9.94%	0.15%	12.46%	-12.30%	27.44%	20.46%	24.13%	-14.88%	24.01%
GUNR FlexShares Morningstar Global Upstream Natural Resources Index Fund	19.20%	30.03%	-8.37%	-2.40%	14.83%	26.06%	0.46%	18.41%	-9.42%	18.74%

Correlation

The correlation between XLB and GUNR is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.74
Correlation (All Time) Calculated using the full available price history since Sep 23, 2011	0.77

The correlation between XLB and GUNR shifts across timeframes, from 0.67 (1 year) to 0.77 (all time), reflecting how their relationship changes across market environments.

XLB vs. GUNR - Sectors Allocation Comparison

Sectors	XLB	GUNR
Basic Materials	87.6%	44.3%
Consumer Cyclical	12.4%	0.2%
Industrials	1.5%	2.3%
Communication Services	-	1.6%
Consumer Defensive	-	11.4%
Energy	-	30.6%
Financial Services	-	2.6%
Healthcare	-	-
Real Estate	-	0.2%
Technology	-	0.5%
Utilities	-	4.0%

Return for Risk

XLB vs. GUNR — Risk / Return Rank

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

XLB

XLB Risk / Return Rank: 32
XLB Sharpe Ratio Rank: 32
XLB Sortino Ratio Rank: 32
XLB Omega Ratio Rank: 30
XLB Calmar Ratio Rank: 32
XLB Martin Ratio Rank: 33

GUNR

GUNR Risk / Return Rank: 84
GUNR Sharpe Ratio Rank: 83
GUNR Sortino Ratio Rank: 76
GUNR Omega Ratio Rank: 79
GUNR Calmar Ratio Rank: 92
GUNR Martin Ratio Rank: 92

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.

XLB vs. GUNR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR). 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.

	XLB	GUNR	Difference
Sharpe ratio: Return per unit of total volatility	1.20	2.75	-1.55
Sortino ratio: Return per unit of downside risk	1.76	3.48	-1.72
Omega ratio: Gain probability vs. loss probability	1.21	1.48	-0.27
Calmar ratio: Return relative to maximum drawdown	1.62	6.12	-4.49
Martin ratio: Return relative to average drawdown	5.06	23.21	-18.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLB vs. GUNR - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.20, which is lower than the GUNR Sharpe Ratio of 2.75. The chart below compares the historical Sharpe Ratios of XLB and GUNR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLB	GUNR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	2.75	-1.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.53	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.55	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.33	+0.03

Drawdowns

XLB vs. GUNR - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, which is greater than GUNR's maximum drawdown of -45.64%. Use the drawdown chart below to compare losses from any high point for XLB and GUNR.

Drawdown Indicators

	XLB	GUNR	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-45.64%	-14.19%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-6.81%	-5.57%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-19.59%	-3.58%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-24.06%	-0.66%
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	-43.04%	+5.77%
Current Drawdown Current decline from peak	-3.28%	-2.56%	-0.72%
Average Drawdown Average peak-to-trough decline	-10.84%	-10.40%	-0.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	1.79%	+2.17%

Volatility

XLB vs. GUNR - Volatility Comparison

Materials Select Sector SPDR ETF (XLB) has a higher volatility of 5.73% compared to FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) at 4.39%. This indicates that XLB's price experiences larger fluctuations and is considered to be riskier than GUNR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	GUNR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	4.39%	+1.34%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	12.57%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	15.14%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.94%	18.98%	-0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.65%	20.42%	+0.23%

XLB vs. GUNR - Expense Ratio Comparison

XLB has a 0.13% expense ratio, which is lower than GUNR's 0.46% expense ratio.

Dividends

XLB vs. GUNR - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.69%, less than GUNR's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GUNR FlexShares Morningstar Global Upstream Natural Resources Index Fund	2.24%	2.81%	3.39%	3.55%	4.12%	3.61%	2.79%	3.25%	3.27%	2.00%	1.73%	4.50%
XLB Materials Select Sector SPDR ETF	1.69%	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

Can I hold both XLB and GUNR in my portfolio?

XLB and GUNR have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLB or GUNR?

XLB has higher volatility (5.73%) compared to GUNR (4.39%). In terms of maximum drawdown, XLB dropped -59.83% vs GUNR's -45.64%.

Which ETF is better, XLB or GUNR?

On 10-year performance, GUNR leads with 11.17% vs 10.23% for XLB. On fees, XLB is cheaper at 0.13% per year. On volatility, GUNR has been the lower-risk option at 4.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLB or GUNR?

Over the 10-year period, GUNR has performed better with a 11.17% return vs 10.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLB or GUNR?

XLB is cheaper with a 0.13% expense ratio, compared with 0.46% for GUNR.

Which ETF pays a higher dividend yield, XLB or GUNR?

GUNR has the higher dividend yield at 2.24%, compared with 1.69% for XLB.

What is the main difference between XLB and GUNR?

XLB is categorized as Materials, while GUNR is Commodity Producers Equities. XLB tracks Materials Select Sector Index, while GUNR tracks Morningstar Global Upstream Natural Resources Index. They also come from different issuers: State Street and Northern Trust. Their fees differ too: 0.13% for XLB and 0.46% for GUNR.

Which has better risk-adjusted returns?

GUNR currently has the higher Sharpe Ratio (2.75 vs 1.20), 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.