XLB vs. RSPM

Last updated Jun 4, 2026

XLB (Materials Select Sector SPDR ETF) and RSPM (Invesco S&P 500® Equal Weight Materials ETF) are both Materials funds - XLB tracks the Materials Select Sector Index while RSPM tracks the S&P 500 Equal Weight Materials Index. Both are passively managed. Over the past 10 years, XLB returned 10.23%/yr vs 10.67%/yr for RSPM. Their correlation of 0.90 suggests significant overlap in exposure. XLB charges 0.13%/yr vs 0.40%/yr for RSPM.

Performance

XLB vs. RSPM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and Invesco S&P 500® Equal Weight Materials ETF (RSPM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLB achieves a 14.35% return, which is significantly lower than RSPM's 15.78% return. Both investments have delivered pretty close results over the past 10 years, with XLB having a 10.23% annualized return and RSPM not far ahead at 10.67%.

XLB

• 1D: 0.21%
• 1M: 1.93%
• YTD: 14.35%
• 6M: 17.15%
• 1Y: 19.99%
• 3Y*: 11.71%
• 5Y*: 5.35%
• 10Y*: 10.23%

RSPM

• 1D: 0.11%
• 1M: 1.21%
• YTD: 15.78%
• 6M: 18.94%
• 1Y: 23.99%
• 3Y*: 10.35%
• 5Y*: 4.29%
• 10Y*: 10.67%

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

XLB vs. RSPM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLB Materials Select Sector SPDR ETF	14.35%	9.94%	0.15%	12.46%	-12.30%	27.44%	20.46%	24.13%	-14.88%	24.01%
RSPM Invesco S&P 500® Equal Weight Materials ETF	15.78%	6.90%	-1.30%	8.32%	-9.95%	31.21%	22.77%	25.11%	-14.75%	25.87%

Correlation

The correlation between XLB and RSPM is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Nov 8, 2006	0.90

The correlation between XLB and RSPM has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.

XLB vs. RSPM - Sectors Allocation Comparison

Sectors	XLB	RSPM
Basic Materials	87.6%	79.4%
Consumer Cyclical	12.4%	20.6%
Industrials	1.5%	3.5%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.0%
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLB vs. RSPM — Risk / Return Rank

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

XLB

XLB Risk / Return Rank: 32
XLB Sharpe Ratio Rank: 32
XLB Sortino Ratio Rank: 32
XLB Omega Ratio Rank: 30
XLB Calmar Ratio Rank: 32
XLB Martin Ratio Rank: 33

RSPM

RSPM Risk / Return Rank: 37
RSPM Sharpe Ratio Rank: 37
RSPM Sortino Ratio Rank: 37
RSPM Omega Ratio Rank: 34
RSPM Calmar Ratio Rank: 40
RSPM Martin Ratio Rank: 35

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. RSPM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and Invesco S&P 500® Equal Weight Materials ETF (RSPM). 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.

	XLB	RSPM	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.33	-0.13
Sortino ratio: Return per unit of downside risk	1.76	1.98	-0.22
Omega ratio: Gain probability vs. loss probability	1.21	1.23	-0.02
Calmar ratio: Return relative to maximum drawdown	1.62	1.96	-0.33
Martin ratio: Return relative to average drawdown	5.06	5.36	-0.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLB vs. RSPM - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.20, which is comparable to the RSPM Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of XLB and RSPM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLB	RSPM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	1.33	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.21	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.49	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.39	-0.03

Drawdowns

XLB vs. RSPM - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, roughly equal to the maximum RSPM drawdown of -61.18%. Use the drawdown chart below to compare losses from any high point for XLB and RSPM.

Drawdown Indicators

	XLB	RSPM	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-61.18%	+1.35%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-12.32%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-27.19%	+4.02%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-27.19%	+2.47%
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	-39.84%	+2.57%
Current Drawdown Current decline from peak	-3.28%	-4.13%	+0.85%
Average Drawdown Average peak-to-trough decline	-10.84%	-8.79%	-2.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	4.49%	-0.53%

Volatility

XLB vs. RSPM - Volatility Comparison

Materials Select Sector SPDR ETF (XLB) and Invesco S&P 500® Equal Weight Materials ETF (RSPM) have volatilities of 5.73% and 5.82%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	RSPM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	5.82%	-0.09%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	13.40%	-0.55%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	18.15%	-1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.94%	20.12%	-1.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.65%	21.93%	-1.28%

XLB vs. RSPM - Expense Ratio Comparison

XLB has a 0.13% expense ratio, which is lower than RSPM's 0.40% expense ratio.

Dividends

XLB vs. RSPM - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.69%, more than RSPM's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RSPM Invesco S&P 500® Equal Weight Materials ETF	1.50%	2.06%	2.04%	2.05%	2.19%	1.43%	1.57%	1.81%	1.83%	1.50%	1.28%	1.57%
XLB Materials Select Sector SPDR ETF	1.69%	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 RSPM in my portfolio?

With a correlation of 0.97, XLB and RSPM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLB or RSPM?

RSPM has higher volatility (5.82%) compared to XLB (5.73%). In terms of maximum drawdown, XLB dropped -59.83% vs RSPM's -61.18%.

Which ETF is better, XLB or RSPM?

On 10-year performance, RSPM leads with 10.67% vs 10.23% for XLB. On fees, XLB is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLB or RSPM?

Over the 10-year period, RSPM has performed better with a 10.67% return vs 10.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLB or RSPM?

XLB is cheaper with a 0.13% expense ratio, compared with 0.40% for RSPM.

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

XLB has the higher dividend yield at 1.69%, compared with 1.50% for RSPM.

What is the main difference between XLB and RSPM?

XLB tracks Materials Select Sector Index, while RSPM tracks S&P 500 Equal Weight Materials Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.13% for XLB and 0.40% for RSPM.

Which has better risk-adjusted returns?

RSPM currently has the higher Sharpe Ratio (1.33 vs 1.20), 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.