XLB vs. JNK
XLB (Materials Select Sector SPDR ETF) and JNK (State Street SPDR Bloomberg High Yield Bond ETF) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while JNK is a High Yield Bonds fund tracking the Bloomberg High Yield Very Liquid Index. Both are passively managed. Over the past 10 years, XLB returned 11.03%/yr vs 5.23%/yr for JNK. A 0.56 correlation means they provide meaningful diversification when combined. XLB charges 0.13%/yr vs 0.40%/yr for JNK.
Performance
XLB vs. JNK - 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 JNK's 1.81% return. Over the past 10 years, XLB has outperformed JNK with an annualized return of 11.03%, while JNK has yielded a comparatively lower 5.23% annualized return.
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%
JNK
- 1D
- 0.09%
- 1M
- 0.25%
- YTD
- 1.81%
- 6M
- 1.81%
- 1Y
- 6.30%
- 3Y*
- 8.85%
- 5Y*
- 3.58%
- 10Y*
- 5.23%
XLB vs. JNK - 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% |
JNK State Street SPDR Bloomberg High Yield Bond ETF | 1.81% | 8.76% | 7.71% | 12.42% | -12.19% | 4.00% | 4.95% | 14.88% | -3.28% | 6.49% |
Correlation
The correlation between XLB and JNK is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Dec 4, 2007 | 0.56 |
The correlation between XLB and JNK has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.
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Return for Risk
XLB vs. JNK — Risk / Return Rank
XLB
JNK
XLB vs. JNK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and State Street SPDR Bloomberg High Yield Bond ETF (JNK). 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 | JNK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.40 | ||
| Sortino ratioReturn per unit of downside risk | -0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.22 | 1.31 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 2.53 | -0.77 |
| Martin ratioReturn relative to average drawdown | 5.32 | 11.07 | -5.75 |
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Drawdowns
XLB vs. JNK - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, which is greater than JNK's maximum drawdown of -38.48%. Use the drawdown chart below to compare losses from any high point for XLB and JNK.
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Drawdown Indicators
| XLB | JNK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.83% | -38.48% | -21.35% |
Max Drawdown (1Y)Largest decline over 1 year | -12.38% | -2.51% | -9.87% |
Max Drawdown (3Y)Largest decline over 3 years | -23.17% | -5.02% | -18.15% |
Max Drawdown (5Y)Largest decline over 5 years | -24.72% | -16.67% | -8.05% |
Max Drawdown (10Y)Largest decline over 10 years | -37.27% | -22.89% | -14.38% |
Current DrawdownCurrent decline from peak | -2.53% | -0.18% | -2.35% |
Average DrawdownAverage peak-to-trough decline | -10.82% | -3.69% | -7.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.07% | 0.57% | +3.50% |
Volatility
XLB vs. JNK - Volatility Comparison
Materials Select Sector SPDR ETF (XLB) has a higher volatility of 6.14% compared to State Street SPDR Bloomberg High Yield Bond ETF (JNK) at 1.03%. This indicates that XLB's price experiences larger fluctuations and is considered to be riskier than JNK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB | JNK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.14% | 1.03% | +5.11% |
Volatility (6M)Calculated over the trailing 6-month period | 13.66% | 3.05% | +10.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.52% | 3.87% | +13.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.03% | 7.56% | +11.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.66% | 8.29% | +12.37% |
XLB vs. JNK - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than JNK's 0.40% expense ratio.
Dividends
XLB vs. JNK - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.64%, less than JNK's 6.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
JNK State Street SPDR Bloomberg High Yield Bond ETF | 6.60% | 6.54% | 6.63% | 6.38% | 6.06% | 4.27% | 5.11% | 5.44% | 5.90% | 5.60% | 6.06% | 6.59% |
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 JNK have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLB has higher volatility (6.14%) compared to JNK (1.03%). In terms of maximum drawdown, XLB dropped -59.83% vs JNK's -38.48%.
On 10-year performance, XLB leads with 11.03% vs 5.23% for JNK. On fees, XLB is cheaper at 0.13% per year. On volatility, JNK has been the lower-risk option at 1.03%. 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 11.03% return vs 5.23%. 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 JNK.
JNK has the higher dividend yield at 6.60%, compared with 1.64% for XLB.
XLB is categorized as Materials, while JNK is High Yield Bonds. XLB tracks Materials Select Sector Index, while JNK tracks Bloomberg High Yield Very Liquid Index. Their fees differ too: 0.13% for XLB and 0.40% for JNK.
JNK currently has the higher Sharpe Ratio (1.64 vs 1.24), 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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