XLB vs. VMIAX

Last updated Jun 4, 2026

XLB (Materials Select Sector SPDR ETF) and VMIAX (Vanguard Materials Index Fund Admiral Shares) are both Materials funds. Over the past 10 years, XLB returned 10.23%/yr vs 10.36%/yr for VMIAX. With a 0.98 correlation, they move nearly in lockstep. XLB charges 0.13%/yr vs 0.10%/yr for VMIAX.

Performance

XLB vs. VMIAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and Vanguard Materials Index Fund Admiral Shares (VMIAX). 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 higher than VMIAX's 13.48% return. Both investments have delivered pretty close results over the past 10 years, with XLB having a 10.23% annualized return and VMIAX not far ahead at 10.36%.

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%

VMIAX

• 1D: 1.31%
• 1M: 2.84%
• YTD: 13.48%
• 6M: 16.50%
• 1Y: 23.03%
• 3Y*: 12.54%
• 5Y*: 5.88%
• 10Y*: 10.36%

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

XLB vs. VMIAX - 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%
VMIAX Vanguard Materials Index Fund Admiral Shares	13.48%	12.26%	0.45%	13.69%	-11.77%	27.15%	19.37%	23.59%	-17.38%	23.68%

Correlation

The correlation between XLB and VMIAX is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Feb 3, 2004	0.98

The correlation between XLB and VMIAX has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

XLB vs. VMIAX - Sectors Allocation Comparison

Sectors	XLB	VMIAX
Basic Materials	87.6%	90.2%
Consumer Cyclical	12.4%	8.3%
Industrials	1.5%	1.0%
Communication Services	-	-
Consumer Defensive	-	0.0%
Energy	-	0.5%
Financial Services	-	-
Healthcare	-	0.5%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

XLB vs. VMIAX — 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

VMIAX

VMIAX Risk / Return Rank: 23
VMIAX Sharpe Ratio Rank: 23
VMIAX Sortino Ratio Rank: 23
VMIAX Omega Ratio Rank: 21
VMIAX Calmar Ratio Rank: 24
VMIAX Martin Ratio Rank: 24

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. VMIAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and Vanguard Materials Index Fund Admiral Shares (VMIAX). 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	VMIAX	Difference
Sharpe ratio: Return per unit of total volatility	1.20	1.39	-0.19
Sortino ratio: Return per unit of downside risk	1.76	1.98	-0.22
Omega ratio: Gain probability vs. loss probability	1.21	1.24	-0.03
Calmar ratio: Return relative to maximum drawdown	1.62	1.83	-0.20
Martin ratio: Return relative to average drawdown	5.06	5.98	-0.92
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. VMIAX - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.20, which is comparable to the VMIAX Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of XLB and VMIAX, 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	VMIAX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	1.39	-0.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.30	-0.02
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. VMIAX - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, roughly equal to the maximum VMIAX drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for XLB and VMIAX.

Drawdown Indicators

	XLB	VMIAX	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-62.17%	+2.34%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-13.41%	+1.03%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-23.21%	+0.04%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-25.45%	+0.73%
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	-41.02%	+3.75%
Current Drawdown Current decline from peak	-3.28%	-3.53%	+0.25%
Average Drawdown Average peak-to-trough decline	-10.84%	-9.63%	-1.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.96%	4.08%	-0.12%

Volatility

XLB vs. VMIAX - Volatility Comparison

The current volatility for Materials Select Sector SPDR ETF (XLB) is 5.73%, while Vanguard Materials Index Fund Admiral Shares (VMIAX) has a volatility of 6.36%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than VMIAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	VMIAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	6.36%	-0.63%
Volatility (6M) Calculated over the trailing 6-month period	12.85%	13.89%	-1.04%
Volatility (1Y) Calculated over the trailing 1-year period	16.78%	17.66%	-0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.94%	19.67%	-0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.65%	21.23%	-0.58%

XLB vs. VMIAX - Expense Ratio Comparison

XLB has a 0.13% expense ratio, which is higher than VMIAX's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLB vs. VMIAX - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.69%, more than VMIAX's 1.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VMIAX Vanguard Materials Index Fund Admiral Shares	1.36%	1.55%	1.70%	1.72%	1.98%	1.33%	1.67%	1.94%	2.02%	1.63%	1.73%	2.31%
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 VMIAX in my portfolio?

With a correlation of 0.98, XLB and VMIAX 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 VMIAX?

VMIAX has higher volatility (6.36%) compared to XLB (5.73%). In terms of maximum drawdown, XLB dropped -59.83% vs VMIAX's -62.17%.

Which has better risk-adjusted returns?

VMIAX currently has the higher Sharpe Ratio (1.39 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.