XLB vs. JNK
Compare and contrast key facts about Materials Select Sector SPDR ETF (XLB) and SPDR Barclays High Yield Bond ETF (JNK).
XLB and JNK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. JNK is a passively managed fund by State Street that tracks the performance of the Barclays Capital High Yield Very Liquid Index. It was launched on Nov 28, 2007. Both XLB and JNK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLB or JNK.
Key characteristics
| XLB | JNK | |
|---|---|---|
| YTD Return | 4.38% | 0.27% |
| 1Y Return | 15.59% | 8.78% |
| 3Y Return (Ann) | 4.29% | 0.58% |
| 5Y Return (Ann) | 11.59% | 2.55% |
| 10Y Return (Ann) | 8.80% | 2.89% |
| Sharpe Ratio | 0.97 | 1.36 |
| Daily Std Dev | 14.72% | 6.15% |
| Max Drawdown | -59.83% | -38.48% |
| Current Drawdown | -4.40% | -1.49% |
Correlation
The correlation between XLB and JNK is 0.57, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XLB vs. JNK - Performance Comparison
In the year-to-date period, XLB achieves a 4.38% return, which is significantly higher than JNK's 0.27% return. Over the past 10 years, XLB has outperformed JNK with an annualized return of 8.80%, while JNK has yielded a comparatively lower 2.89% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLB vs. JNK - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than JNK's 0.40% expense ratio.
Risk-Adjusted Performance
XLB vs. JNK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and SPDR Barclays 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.
Dividends
XLB vs. JNK - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.92%, less than JNK's 6.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
JNK SPDR Barclays High Yield Bond ETF | 6.61% | 6.38% | 6.06% | 4.27% | 5.11% | 5.44% | 5.90% | 5.60% | 6.06% | 6.59% | 5.99% | 6.05% |
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. For additional features, visit the drawdowns tool.
Volatility
XLB vs. JNK - Volatility Comparison
Materials Select Sector SPDR ETF (XLB) has a higher volatility of 3.56% compared to SPDR Barclays High Yield Bond ETF (JNK) at 1.68%. 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.