XLB vs. XAD.TO
XLB (Materials Select Sector SPDR ETF) and XAD.TO (iShares U.S. Aerospace & Defense Index ETF) are both exchange-traded funds - XLB is a Materials fund tracking the Materials Select Sector Index, while XAD.TO is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index. Both are passively managed. Over the past year, XLB returned 21.77% vs 30.79% for XAD.TO. At a 0.31 correlation, their price movements are largely independent. XLB charges 0.13%/yr vs 0.44%/yr for XAD.TO.
Performance
XLB vs. XAD.TO - Performance Comparison
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Different Trading Currencies
XLB is traded in USD, while XAD.TO is traded in CAD. To make them comparable, the XAD.TO values have been converted to USD using the latest available exchange rates.
Returns By Period
In the year-to-date period, XLB achieves a 15.57% return, which is significantly higher than XAD.TO's 8.97% 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%
XAD.TO
- 1D
- -0.65%
- 1M
- 7.53%
- YTD
- 8.97%
- 6M
- 12.08%
- 1Y
- 30.79%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
XLB vs. XAD.TO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 15.57% | 9.94% | 0.15% | 6.37% |
XAD.TO iShares U.S. Aerospace & Defense Index ETF | 8.97% | 48.55% | 15.24% | 16.07% |
Correlation
The correlation between XLB and XAD.TO is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2023 | 0.31 |
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Return for Risk
XLB vs. XAD.TO — Risk / Return Rank
XLB
XAD.TO
XLB vs. XAD.TO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and iShares U.S. Aerospace & Defense Index ETF (XAD.TO). 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 | XAD.TO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.31 | ||
| Sortino ratioReturn per unit of downside risk | -0.48 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.25 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 2.02 | -0.37 |
| Martin ratioReturn relative to average drawdown | 5.05 | 5.32 | -0.26 |
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Drawdowns
XLB vs. XAD.TO - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, which is greater than XAD.TO's maximum drawdown of -15.78%. Use the drawdown chart below to compare losses from any high point for XLB and XAD.TO.
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Drawdown Indicators
| XLB | XAD.TO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.83% | -15.78% | -44.05% |
Max Drawdown (1Y)Largest decline over 1 year | -12.38% | -15.78% | +3.40% |
Max Drawdown (3Y)Largest decline over 3 years | -23.17% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -24.72% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -37.27% | — | — |
Current DrawdownCurrent decline from peak | -2.25% | -6.37% | +4.12% |
Average DrawdownAverage peak-to-trough decline | -10.83% | -2.97% | -7.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.04% | 5.99% | -1.95% |
Volatility
XLB vs. XAD.TO - Volatility Comparison
The current volatility for Materials Select Sector SPDR ETF (XLB) is 7.05%, while iShares U.S. Aerospace & Defense Index ETF (XAD.TO) has a volatility of 7.64%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than XAD.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLB | XAD.TO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.05% | 7.64% | -0.59% |
Volatility (6M)Calculated over the trailing 6-month period | 13.58% | 17.61% | -4.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.49% | 21.57% | -4.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.06% | 20.46% | -1.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.70% | 20.46% | +0.24% |
XLB vs. XAD.TO - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is lower than XAD.TO's 0.44% expense ratio.
Dividends
XLB vs. XAD.TO - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.68%, more than XAD.TO's 0.32% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XAD.TO iShares U.S. Aerospace & Defense Index ETF | 0.32% | 0.35% | 0.44% | 0.24% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
XLB and XAD.TO have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XLB is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XLB is cheaper with a 0.13% expense ratio, compared with 0.44% for XAD.TO.
XLB is categorized as Materials, while XAD.TO is Aerospace & Defense. XLB tracks Materials Select Sector Index, while XAD.TO tracks Dow Jones U.S. Select Aerospace & Defense Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLB and 0.44% for XAD.TO.
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