XLB vs. IYZ
XLB (Materials Select Sector SPDR ETF) and IYZ (iShares U.S. Telecommunications ETF) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index. Both are passively managed. Over the past 10 years, XLB returned 10.54%/yr vs 5.94%/yr for IYZ. A 0.59 correlation means they provide meaningful diversification when combined. XLB charges 0.13%/yr vs 0.42%/yr for IYZ.
Performance
XLB vs. IYZ - Performance Comparison
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Returns By Period
In the year-to-date period, XLB achieves a 15.57% return, which is significantly lower than IYZ's 29.57% return. Over the past 10 years, XLB has outperformed IYZ with an annualized return of 10.54%, while IYZ has yielded a comparatively lower 5.94% annualized 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%
IYZ
- 1D
- 1.27%
- 1M
- 4.54%
- YTD
- 29.57%
- 6M
- 32.60%
- 1Y
- 56.05%
- 3Y*
- 28.37%
- 5Y*
- 7.57%
- 10Y*
- 5.94%
XLB vs. IYZ - 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% |
IYZ iShares U.S. Telecommunications ETF | 29.57% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
Correlation
The correlation between XLB and IYZ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.44 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since May 26, 2000 | 0.59 |
The correlation between XLB and IYZ shifts across timeframes, from 0.44 (1 year) to 0.61 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLB vs. IYZ — Risk / Return Rank
XLB
IYZ
XLB vs. IYZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and iShares U.S. Telecommunications ETF (IYZ). 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 | IYZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.85 | ||
| Sortino ratioReturn per unit of downside risk | -2.21 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.52 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 6.54 | -4.89 |
| Martin ratioReturn relative to average drawdown | 5.05 | 25.99 | -20.94 |
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Drawdowns
XLB vs. IYZ - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, smaller than the maximum IYZ drawdown of -77.11%. Use the drawdown chart below to compare losses from any high point for XLB and IYZ.
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Drawdown Indicators
| XLB | IYZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.83% | -77.11% | +17.28% |
Max Drawdown (1Y)Largest decline over 1 year | -12.38% | -8.62% | -3.76% |
Max Drawdown (3Y)Largest decline over 3 years | -23.17% | -13.85% | -9.32% |
Max Drawdown (5Y)Largest decline over 5 years | -24.72% | -39.74% | +15.02% |
Max Drawdown (10Y)Largest decline over 10 years | -37.27% | -39.74% | +2.47% |
Current DrawdownCurrent decline from peak | -2.25% | -4.77% | +2.52% |
Average DrawdownAverage peak-to-trough decline | -10.83% | -40.10% | +29.27% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.04% | 2.17% | +1.87% |
Volatility
XLB vs. IYZ - Volatility Comparison
The current volatility for Materials Select Sector SPDR ETF (XLB) is 7.05%, while iShares U.S. Telecommunications ETF (IYZ) has a volatility of 8.76%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than IYZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB | IYZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.05% | 8.76% | -1.71% |
Volatility (6M)Calculated over the trailing 6-month period | 13.58% | 15.61% | -2.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.49% | 18.65% | -1.16% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.06% | 18.88% | +0.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.70% | 19.30% | +1.40% |
XLB vs. IYZ - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than IYZ's 0.42% expense ratio.
Dividends
XLB vs. IYZ - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.68%, more than IYZ's 1.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 1.53% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
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 IYZ have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (8.76%) compared to XLB (7.05%). In terms of maximum drawdown, XLB dropped -59.83% vs IYZ's -77.11%.
On 10-year performance, XLB leads with 10.54% vs 5.94% for IYZ. 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 5.94%. 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 0.42% for IYZ.
XLB has the higher dividend yield at 1.68%, compared with 1.53% for IYZ.
XLB is categorized as Materials, while IYZ is Communications Equities. XLB tracks Materials Select Sector Index, while IYZ tracks Dow Jones U.S. Select Telecommunications Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLB and 0.42% for IYZ.
IYZ currently has the higher Sharpe Ratio (3.02 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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