XLB vs. MCD

Last updated Jun 14, 2026

XLB (Materials Select Sector SPDR ETF) is Materials fund tracking the Materials Select Sector Index, while MCD (McDonald's Corporation) is a stock. Over the past 10 years, XLB returned 10.54%/yr vs 11.46%/yr for MCD. At a 0.36 correlation, their price movements are largely independent.

Performance

XLB vs. MCD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and McDonald's Corporation (MCD). 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 MCD's -5.66% return. Over the past 10 years, XLB has underperformed MCD with an annualized return of 10.54%, while MCD has yielded a comparatively higher 11.46% annualized return.

XLB

• 1D: 1.87%
• 1M: 0.99%
• YTD: 15.57%
• 6M: 16.68%
• 1Y: 21.77%
• 3Y*: 10.88%
• 5Y*: 6.01%
• 10Y*: 10.54%

MCD

• 1D: 0.01%
• 1M: 4.28%
• YTD: -5.66%
• 6M: -8.96%
• 1Y: -3.37%
• 3Y*: 1.94%
• 5Y*: 6.16%
• 10Y*: 11.46%

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

XLB vs. MCD - 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%
MCD McDonald's Corporation	-5.66%	7.89%	0.14%	15.06%	0.51%	27.79%	11.30%	13.97%	5.78%	45.05%

Correlation

The correlation between XLB and MCD is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.36

The correlation between XLB and MCD shifts across timeframes, from 0.21 (1 year) to 0.36 (all time), reflecting how their relationship changes across market environments.

Return for Risk

XLB vs. MCD — 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

MCD

MCD Risk / Return Rank: 32
MCD Sharpe Ratio Rank: 33
MCD Sortino Ratio Rank: 27
MCD Omega Ratio Rank: 28
MCD Calmar Ratio Rank: 37
MCD Martin Ratio Rank: 34

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. MCD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and McDonald's Corporation (MCD). 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	MCD	Difference
Sharpe ratio: Return per unit of total volatility	1.17	-0.23	+1.40
Sortino ratio: Return per unit of downside risk	1.73	-0.21	+1.94
Omega ratio: Gain probability vs. loss probability	1.20	0.98	+0.23
Calmar ratio: Return relative to maximum drawdown	1.65	-0.20	+1.85
Martin ratio: Return relative to average drawdown	5.05	-0.50	+5.56

XLB vs. MCD - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.17, which is higher than the MCD Sharpe Ratio of -0.23. The chart below compares the historical Sharpe Ratios of XLB and MCD, 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. MCD - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, smaller than the maximum MCD drawdown of -73.20%. Use the drawdown chart below to compare losses from any high point for XLB and MCD.

Drawdown Indicators

	XLB	MCD	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-73.20%	+13.37%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-19.05%	+6.67%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-19.05%	-4.12%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-19.05%	-5.67%
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	-36.90%	-0.37%
Current Drawdown Current decline from peak	-2.25%	-15.46%	+13.21%
Average Drawdown Average peak-to-trough decline	-10.83%	-14.89%	+4.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	7.53%	-3.49%

Volatility

XLB vs. MCD - Volatility Comparison

Materials Select Sector SPDR ETF (XLB) has a higher volatility of 7.05% compared to McDonald's Corporation (MCD) at 4.96%. This indicates that XLB's price experiences larger fluctuations and is considered to be riskier than MCD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	MCD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.05%	4.96%	+2.09%
Volatility (6M) Calculated over the trailing 6-month period	13.58%	12.20%	+1.38%
Volatility (1Y) Calculated over the trailing 1-year period	17.49%	16.62%	+0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.06%	17.27%	+1.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	20.40%	+0.30%

Dividends

XLB vs. MCD - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.68%, less than MCD's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCD McDonald's Corporation	2.58%	2.35%	2.34%	2.10%	2.15%	1.96%	2.35%	2.39%	2.36%	2.23%	2.97%	2.91%
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 MCD in my portfolio?

XLB and MCD have a correlation of 0.21, 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 MCD?

XLB has higher volatility (7.05%) compared to MCD (4.96%). In terms of maximum drawdown, XLB dropped -59.83% vs MCD's -73.20%.

Which has better risk-adjusted returns?

XLB currently has the higher Sharpe Ratio (1.17 vs -0.23), 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.