XLB vs. XMA.TO

Last updated Jun 14, 2026

XLB (Materials Select Sector SPDR ETF) and XMA.TO (iShares S&P/TSX Capped Materials Index ETF) are both Materials funds - XLB tracks the Materials Select Sector Index while XMA.TO tracks the S&P/TSX Capped Materials TR. Both are passively managed. Over the past 10 years, XLB returned 10.54%/yr vs 12.52%/yr for XMA.TO. At a 0.49 correlation, their price movements are largely independent. XLB charges 0.13%/yr vs 0.60%/yr for XMA.TO.

Performance

XLB vs. XMA.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Materials Select Sector SPDR ETF (XLB) and iShares S&P/TSX Capped Materials Index ETF (XMA.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XLB is traded in USD, while XMA.TO is traded in CAD. To make them comparable, the XMA.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 XMA.TO's -0.05% return. Over the past 10 years, XLB has underperformed XMA.TO with an annualized return of 10.54%, while XMA.TO has yielded a comparatively higher 12.52% 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%

XMA.TO

• 1D: 2.84%
• 1M: -6.22%
• YTD: -0.05%
• 6M: 1.92%
• 1Y: 49.51%
• 3Y*: 31.32%
• 5Y*: 15.40%
• 10Y*: 12.52%

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

XLB vs. XMA.TO - 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%
XMA.TO iShares S&P/TSX Capped Materials Index ETF	-0.05%	108.74%	11.29%	0.35%	-4.69%	3.37%	22.64%	30.00%	-17.38%	14.90%

Correlation

The correlation between XLB and XMA.TO is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Jul 12, 2006	0.49

The correlation between XLB and XMA.TO shifts across timeframes, from 0.41 (10 years) to 0.53 (1 year), reflecting how their relationship changes across market environments.

XLB vs. XMA.TO - Sectors Allocation Comparison

Sectors	XLB	XMA.TO
Basic Materials	87.3%	98.1%
Consumer Cyclical	12.7%	1.6%
Industrials	1.5%	0.0%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLB vs. XMA.TO — 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

XMA.TO

XMA.TO Risk / Return Rank: 44
XMA.TO Sharpe Ratio Rank: 48
XMA.TO Sortino Ratio Rank: 39
XMA.TO Omega Ratio Rank: 47
XMA.TO Calmar Ratio Rank: 45
XMA.TO Martin Ratio Rank: 38

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. XMA.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) and iShares S&P/TSX Capped Materials Index ETF (XMA.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	XMA.TO	Difference
Sharpe ratio: Return per unit of total volatility	1.17	1.35	-0.18
Sortino ratio: Return per unit of downside risk	1.73	1.74	-0.01
Omega ratio: Gain probability vs. loss probability	1.20	1.25	-0.05
Calmar ratio: Return relative to maximum drawdown	1.65	1.76	-0.11
Martin ratio: Return relative to average drawdown	5.05	4.94	+0.11

XLB vs. XMA.TO - Sharpe Ratio Comparison

The current XLB Sharpe Ratio is 1.17, which is comparable to the XMA.TO Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of XLB and XMA.TO, 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. XMA.TO - Drawdown Comparison

The maximum XLB drawdown since its inception was -59.83%, smaller than the maximum XMA.TO drawdown of -76.39%. Use the drawdown chart below to compare losses from any high point for XLB and XMA.TO.

Drawdown Indicators

	XLB	XMA.TO	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-76.39%	+16.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.38%	-29.93%	+17.55%
Max Drawdown (3Y) Largest decline over 3 years	-23.17%	-29.93%	+6.76%
Max Drawdown (5Y) Largest decline over 5 years	-24.72%	-37.18%	+12.46%
Max Drawdown (10Y) Largest decline over 10 years	-37.27%	-37.18%	-0.09%
Current Drawdown Current decline from peak	-2.25%	-24.63%	+22.38%
Average Drawdown Average peak-to-trough decline	-10.83%	-37.72%	+26.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	10.66%	-6.62%

Volatility

XLB vs. XMA.TO - Volatility Comparison

The current volatility for Materials Select Sector SPDR ETF (XLB) is 7.05%, while iShares S&P/TSX Capped Materials Index ETF (XMA.TO) has a volatility of 15.40%. This indicates that XLB experiences smaller price fluctuations and is considered to be less risky than XMA.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLB	XMA.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.05%	15.40%	-8.35%
Volatility (6M) Calculated over the trailing 6-month period	13.58%	32.78%	-19.20%
Volatility (1Y) Calculated over the trailing 1-year period	17.49%	38.99%	-21.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.06%	28.82%	-9.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	27.56%	-6.86%

XLB vs. XMA.TO - Expense Ratio Comparison

XLB has a 0.13% expense ratio, which is lower than XMA.TO's 0.60% expense ratio.

Dividends

XLB vs. XMA.TO - Dividend Comparison

XLB's dividend yield for the trailing twelve months is around 1.68%, more than XMA.TO's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XMA.TO iShares S&P/TSX Capped Materials Index ETF	0.39%	0.41%	0.83%	1.26%	1.24%	0.87%	0.63%	0.64%	0.75%	0.47%	0.82%	1.87%

Frequently Asked Questions

Can I hold both XLB and XMA.TO in my portfolio?

XLB and XMA.TO have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLB or XMA.TO?

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.

Which ETF is cheaper, XLB or XMA.TO?

XLB is cheaper with a 0.13% expense ratio, compared with 0.60% for XMA.TO.

What is the main difference between XLB and XMA.TO?

XLB tracks Materials Select Sector Index, while XMA.TO tracks S&P/TSX Capped Materials TR. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLB and 0.60% for XMA.TO.