XLB vs. RTM
Compare and contrast key facts about Materials Select Sector SPDR ETF (XLB) and Invesco S&P 500® Equal Weight Materials ETF (RTM).
XLB and RTM 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. RTM is a passively managed fund by Invesco that tracks the performance of the S&P 500 Equal Weighted / Materials -SEC. It was launched on Nov 1, 2006. Both XLB and RTM 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 RTM.
Key characteristics
| XLB | RTM | |
|---|---|---|
| YTD Return | 5.03% | 3.88% |
| 1Y Return | 14.74% | 12.18% |
| 3Y Return (Ann) | 4.59% | 3.77% |
| 5Y Return (Ann) | 11.72% | 12.31% |
| 10Y Return (Ann) | 8.79% | 9.84% |
| Sharpe Ratio | 1.11 | 0.84 |
| Daily Std Dev | 14.68% | 16.29% |
| Max Drawdown | -59.83% | -57.93% |
| Current Drawdown | -3.80% | -4.61% |
Correlation
The correlation between XLB and RTM is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLB vs. RTM - Performance Comparison
In the year-to-date period, XLB achieves a 5.03% return, which is significantly higher than RTM's 3.88% return. Over the past 10 years, XLB has underperformed RTM with an annualized return of 8.79%, while RTM has yielded a comparatively higher 9.84% 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. RTM - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than RTM's 0.40% expense ratio.
Risk-Adjusted Performance
XLB vs. RTM - Risk-Adjusted Performance 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 (RTM). 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. RTM - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.91%, less than RTM's 1.98% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 1.91% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
RTM Invesco S&P 500® Equal Weight Materials ETF | 1.98% | 2.05% | 2.19% | 1.43% | 1.57% | 1.81% | 1.83% | 1.50% | 1.28% | 1.57% | 1.45% | 1.36% |
Drawdowns
XLB vs. RTM - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, roughly equal to the maximum RTM drawdown of -57.93%. Use the drawdown chart below to compare losses from any high point for XLB and RTM. For additional features, visit the drawdowns tool.
Volatility
XLB vs. RTM - Volatility Comparison
The current volatility for Materials Select Sector SPDR ETF (XLB) is 3.27%, while Invesco S&P 500® Equal Weight Materials ETF (RTM) has a volatility of 3.68%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than RTM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.