XLC vs. MUSQ

Last updated Jul 17, 2026

XLC (Communication Services Select Sector SPDR Fund) and MUSQ (MUSQ Global Music Industry Index ETF) are both Communications Equities funds - XLC tracks the S&P Communication Services Select Sector Index while MUSQ tracks the MUSQ Global Music Industry Index. Both are passively managed. Over the past 3 years, XLC returned 20.31%/yr vs 0.49%/yr for MUSQ. A 0.67 correlation means they provide meaningful diversification when combined. XLC charges 0.13%/yr vs 0.76%/yr for MUSQ.

Performance

XLC vs. MUSQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Communication Services Select Sector SPDR Fund (XLC) and MUSQ Global Music Industry Index ETF (MUSQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLC achieves a -3.75% return, which is significantly higher than MUSQ's -9.48% return.

XLC

• 1D: -0.64%
• 1M: 0.55%
• 6M: -2.50%
• YTD: -3.75%
• 1Y: 7.30%
• 3Y*: 20.31%
• 5Y*: 7.96%
• 10Y*: —

MUSQ

• 1D: 0.00%
• 1M: 0.16%
• 6M: -8.41%
• YTD: -9.48%
• 1Y: -10.46%
• 3Y*: 0.49%
• 5Y*: —
• 10Y*: —

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

XLC vs. MUSQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XLC Communication Services Select Sector SPDR Fund	-3.75%	23.08%	34.71%	11.86%
MUSQ MUSQ Global Music Industry Index ETF	-9.48%	19.60%	-4.94%	0.81%

Correlation

The correlation between XLC and MUSQ is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (All Time) Calculated using the full available price history since Jul 7, 2023	0.67

The correlation between XLC and MUSQ has been stable across timeframes, ranging from 0.63 to 0.67 - a consistent structural relationship.

XLC vs. MUSQ - Sectors Allocation Comparison

Sectors	XLC	MUSQ
Communication Services	91.0%	70.0%
Technology	8.9%	14.1%
Basic Materials	-	-
Consumer Cyclical	-	11.2%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.5%
Real Estate	-	-
Utilities	-	-

Return for Risk

XLC vs. MUSQ — Risk / Return Rank

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

XLC

XLC Risk / Return Rank: 19
XLC Sharpe Ratio Rank: 19
XLC Sortino Ratio Rank: 18
XLC Omega Ratio Rank: 18
XLC Calmar Ratio Rank: 19
XLC Martin Ratio Rank: 20

MUSQ

MUSQ Risk / Return Rank: 5
MUSQ Sharpe Ratio Rank: 4
MUSQ Sortino Ratio Rank: 4
MUSQ Omega Ratio Rank: 4
MUSQ Calmar Ratio Rank: 5
MUSQ Martin Ratio Rank: 5

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.

XLC vs. MUSQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and MUSQ Global Music Industry Index ETF (MUSQ). 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.

	XLC	MUSQ	Difference
Sharpe ratio: Return per unit of total volatility	0.53	-0.60	+1.13
Sortino ratio: Return per unit of downside risk	0.84	-0.76	+1.60
Omega ratio: Gain probability vs. loss probability	1.10	0.91	+0.18
Calmar ratio: Return relative to maximum drawdown	0.63	-0.45	+1.09
Martin ratio: Return relative to average drawdown	1.77	-0.96	+2.73

XLC vs. MUSQ - Sharpe Ratio Comparison

The current XLC Sharpe Ratio is 0.53, which is higher than the MUSQ Sharpe Ratio of -0.60. The chart below compares the historical Sharpe Ratios of XLC and MUSQ, 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

XLC vs. MUSQ - Drawdown Comparison

The maximum XLC drawdown since its inception was -46.65%, which is greater than MUSQ's maximum drawdown of -23.11%. Use the drawdown chart below to compare losses from any high point for XLC and MUSQ.

Drawdown Indicators

	XLC	MUSQ	Difference
Max Drawdown Largest peak-to-trough decline	-46.65%	-23.11%	-23.54%
Max Drawdown (1Y) Largest decline over 1 year	-11.57%	-23.11%	+11.54%
Max Drawdown (3Y) Largest decline over 3 years	-17.97%	-23.11%	+5.14%
Max Drawdown (5Y) Largest decline over 5 years	-46.65%	—	—
Current Drawdown Current decline from peak	-5.64%	-15.55%	+9.91%
Average Drawdown Average peak-to-trough decline	-10.55%	-6.95%	-3.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	10.94%	-6.80%

Volatility

XLC vs. MUSQ - Volatility Comparison

Communication Services Select Sector SPDR Fund (XLC) has a higher volatility of 5.73% compared to MUSQ Global Music Industry Index ETF (MUSQ) at 4.85%. This indicates that XLC's price experiences larger fluctuations and is considered to be riskier than MUSQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLC	MUSQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	4.85%	+0.88%
Volatility (6M) Calculated over the trailing 6-month period	10.99%	14.18%	-3.19%
Volatility (1Y) Calculated over the trailing 1-year period	13.83%	17.41%	-3.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.79%	17.88%	+2.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.14%	17.88%	+4.26%

XLC vs. MUSQ - Expense Ratio Comparison

XLC has a 0.13% expense ratio, which is lower than MUSQ's 0.76% expense ratio.

Dividends

XLC vs. MUSQ - Dividend Comparison

XLC's dividend yield for the trailing twelve months is around 1.27%, more than MUSQ's 0.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MUSQ MUSQ Global Music Industry Index ETF	0.70%	0.63%	1.08%	0.74%	0.00%	0.00%	0.00%	0.00%	0.00%
XLC Communication Services Select Sector SPDR Fund	1.27%	1.13%	0.99%	0.82%	1.10%	0.74%	0.68%	0.82%	0.64%

Frequently Asked Questions

Can I hold both XLC and MUSQ in my portfolio?

XLC and MUSQ have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLC or MUSQ?

XLC has higher volatility (5.73%) compared to MUSQ (4.85%). In terms of maximum drawdown, XLC dropped -46.65% vs MUSQ's -23.11%.

Which ETF is better, XLC or MUSQ?

On 3-year performance, XLC leads with 20.31% vs 0.49% for MUSQ. On fees, XLC is cheaper at 0.13% per year. On volatility, MUSQ has been the lower-risk option at 4.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLC or MUSQ?

Over the 3-year period, XLC has performed better with a 20.31% return vs 0.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLC or MUSQ?

XLC is cheaper with a 0.13% expense ratio, compared with 0.76% for MUSQ.

Which ETF pays a higher dividend yield, XLC or MUSQ?

XLC has the higher dividend yield at 1.27%, compared with 0.70% for MUSQ.

What is the main difference between XLC and MUSQ?

XLC tracks S&P Communication Services Select Sector Index, while MUSQ tracks MUSQ Global Music Industry Index. They also come from different issuers: State Street and Exchange Traded Concepts. Their fees differ too: 0.13% for XLC and 0.76% for MUSQ.

Which has better risk-adjusted returns?

XLC currently has the higher Sharpe Ratio (0.53 vs -0.60), 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.