XLB vs. IAUM

Last updated Jun 13, 2026

XLB (Materials Select Sector SPDR ETF) and IAUM (iShares Gold Trust Micro) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while IAUM is a Gold fund tracking the LBMA Gold Price PM. Both are passively managed. Over the past 3 years, XLB returned 10.88%/yr vs 29.28%/yr for IAUM. At a 0.25 correlation, their price movements are largely independent. XLB charges 0.13%/yr vs 0.09%/yr for IAUM.

Performance

XLB vs. IAUM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and iShares Gold Trust Micro (IAUM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLB achieves a 15.57% return, which is significantly higher than IAUM's -2.40% return.

XLB

• 1D: 1.87%
• 1M: 0.23%
• YTD: 15.57%
• 6M: 16.68%
• 1Y: 20.35%
• 3Y*: 10.88%
• 5Y*: 6.01%
• 10Y*: 10.54%

IAUM

• 1D: 0.10%
• 1M: -10.19%
• YTD: -2.40%
• 6M: -2.08%
• 1Y: 24.22%
• 3Y*: 29.28%
• 5Y*: —
• 10Y*: —

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

XLB vs. IAUM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XLB Materials Select Sector SPDR ETF	15.57%	9.94%	0.15%	12.46%	-12.30%	11.37%
IAUM iShares Gold Trust Micro	-2.40%	64.27%	27.04%	13.12%	-0.49%	3.87%

Correlation

The correlation between XLB and IAUM is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (All Time) Calculated using the full available price history since Jun 29, 2021	0.25

The correlation between XLB and IAUM shifts across timeframes, from 0.25 (all time) to 0.38 (1 year), reflecting how their relationship changes across market environments.

XLB vs. IAUM - Sectors Allocation Comparison

Sectors	XLB	IAUM
Basic Materials	87.6%	-
Consumer Cyclical	12.4%	-
Industrials	1.5%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	100.0%
Technology	-	-
Utilities	-	-

Return for Risk

XLB vs. IAUM — Risk / Return Rank

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

XLB

XLB Risk / Return Rank: 37
XLB Sharpe Ratio Rank: 37
XLB Sortino Ratio Rank: 37
XLB Omega Ratio Rank: 34
XLB Calmar Ratio Rank: 38
XLB Martin Ratio Rank: 37

IAUM

IAUM Risk / Return Rank: 27
IAUM Sharpe Ratio Rank: 28
IAUM Sortino Ratio Rank: 25
IAUM Omega Ratio Rank: 31
IAUM Calmar Ratio Rank: 24
IAUM Martin Ratio Rank: 25

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. IAUM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and iShares Gold Trust Micro (IAUM). 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	IAUM	Difference
Sharpe ratio: Return per unit of total volatility	1.17	0.90	+0.27
Sortino ratio: Return per unit of downside risk	1.73	1.26	+0.47
Omega ratio: Gain probability vs. loss probability	1.20	1.19	+0.02
Calmar ratio: Return relative to maximum drawdown	1.65	1.00	+0.65
Martin ratio: Return relative to average drawdown	5.05	2.87	+2.18

XLB vs. IAUM - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.17, which is comparable to the IAUM Sharpe Ratio of 0.90. The chart below compares the historical Sharpe Ratios of XLB and IAUM, 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

XLB vs. IAUM - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, which is greater than IAUM's maximum drawdown of -24.37%. Use the drawdown chart below to compare losses from any high point for XLB and IAUM.

Drawdown Indicators

	XLB	IAUM	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-24.37%	-35.46%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-24.37%	+11.99%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-24.37%	+1.20%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	—	—
Current Drawdown Current decline from peak	-2.25%	-21.99%	+19.74%
Average Drawdown Average peak-to-trough decline	-10.83%	-5.38%	-5.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	8.46%	-4.42%

Volatility

XLB vs. IAUM - Volatility Comparison

The current volatility for Materials Select Sector SPDR ETF (XLB) is 7.05%, while iShares Gold Trust Micro (IAUM) has a volatility of 7.71%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than IAUM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	IAUM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.05%	7.71%	-0.66%
Volatility (6M) Calculated over the trailing 6-month period	13.58%	23.82%	-10.24%
Volatility (1Y) Calculated over the trailing 1-year period	17.49%	27.06%	-9.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.06%	18.05%	+1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	18.05%	+2.65%

XLB vs. IAUM - Expense Ratio Comparison

XLB has a 0.13% expense ratio, which is higher than IAUM's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLB vs. IAUM - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.68%, while IAUM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IAUM iShares Gold Trust Micro	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	1.68%	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

Can I hold both XLB and IAUM in my portfolio?

XLB and IAUM have a correlation of 0.38, 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 IAUM?

IAUM has higher volatility (7.71%) compared to XLB (7.05%). In terms of maximum drawdown, XLB dropped -59.83% vs IAUM's -24.37%.

Which ETF is better, XLB or IAUM?

On 3-year performance, IAUM leads with 29.28% vs 10.88% for XLB. On fees, IAUM is cheaper at 0.09% 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.

Which ETF has performed better, XLB or IAUM?

Over the 3-year period, IAUM has performed better with a 29.28% return vs 10.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLB or IAUM?

IAUM is cheaper with a 0.09% expense ratio, compared with 0.13% for XLB.

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

XLB has the higher dividend yield at 1.68%, compared with 0.00% for IAUM.

What is the main difference between XLB and IAUM?

XLB is categorized as Materials, while IAUM is Gold. XLB tracks Materials Select Sector Index, while IAUM tracks LBMA Gold Price PM. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLB and 0.09% for IAUM.

Which has better risk-adjusted returns?

XLB currently has the higher Sharpe Ratio (1.17 vs 0.90), 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.