XLC vs. SH
XLC (Communication Services Select Sector SPDR Fund) and SH (ProShares Short S&P500) are both exchange-traded funds - XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index, while SH is a Inverse Equities fund tracking the S&P 500 (-100%). Both are passively managed. Over the past 5 years, XLC returned 8.03%/yr vs -8.68%/yr for SH. At a correlation of -0.81, they often move in opposite directions. XLC charges 0.13%/yr vs 0.90%/yr for SH.
Performance
XLC vs. SH - Performance Comparison
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Returns By Period
In the year-to-date period, XLC achieves a -4.85% return, which is significantly higher than SH's -6.39% return.
XLC
- 1D
- -0.42%
- 1M
- -4.66%
- YTD
- -4.85%
- 6M
- -3.59%
- 1Y
- 10.19%
- 3Y*
- 21.60%
- 5Y*
- 8.03%
- 10Y*
- —
SH
- 1D
- -0.50%
- 1M
- 1.30%
- YTD
- -6.39%
- 6M
- -6.43%
- 1Y
- -15.90%
- 3Y*
- -11.96%
- 5Y*
- -8.68%
- 10Y*
- -12.83%
XLC vs. SH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
XLC Communication Services Select Sector SPDR Fund | -4.85% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
SH ProShares Short S&P500 | -6.39% | -11.35% | -13.52% | -14.80% | 18.98% | -24.21% | -25.09% | -22.12% | 9.74% |
Correlation
The correlation between XLC and SH is -0.63, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.80 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | -0.81 |
The correlation between XLC and SH shifts across timeframes, from -0.81 (all time) to -0.63 (1 year), reflecting how their relationship changes across market environments.
XLC vs. SH - Sectors Allocation Comparison
Sectors
XLC
SH
Communication Services
-
Technology
-
Basic Materials
-
-
Consumer Cyclical
-
-
Consumer Defensive
-
-
Energy
-
-
Financial Services
-
Healthcare
-
-
Industrials
-
-
Real Estate
-
-
Utilities
-
-
Communication Services
XLC
SH
-
Technology
XLC
SH
-
Basic Materials
XLC
-
SH
-
Consumer Cyclical
XLC
-
SH
-
Consumer Defensive
XLC
-
SH
-
Energy
XLC
-
SH
-
Financial Services
XLC
-
SH
Healthcare
XLC
-
SH
-
Industrials
XLC
-
SH
-
Real Estate
XLC
-
SH
-
Utilities
XLC
-
SH
-
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Return for Risk
XLC vs. SH — Risk / Return Rank
XLC
SH
XLC vs. SH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and ProShares Short S&P500 (SH). 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 | SH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.91 | ||
| Sortino ratioReturn per unit of downside risk | +2.83 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 0.81 | +0.31 |
| Calmar ratioReturn relative to maximum drawdown | 0.86 | -0.82 | +1.68 |
| Martin ratioReturn relative to average drawdown | 2.73 | -1.47 | +4.21 |
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Drawdowns
XLC vs. SH - Drawdown Comparison
The maximum XLC drawdown since its inception was -46.65%, smaller than the maximum SH drawdown of -94.66%. Use the drawdown chart below to compare losses from any high point for XLC and SH.
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Drawdown Indicators
| XLC | SH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.65% | -94.66% | +48.01% |
Max Drawdown (1Y)Largest decline over 1 year | -10.57% | -18.16% | +7.59% |
Max Drawdown (3Y)Largest decline over 3 years | -17.97% | -38.82% | +20.85% |
Max Drawdown (5Y)Largest decline over 5 years | -46.65% | -44.53% | -2.12% |
Max Drawdown (10Y)Largest decline over 10 years | — | -76.12% | — |
Current DrawdownCurrent decline from peak | -6.72% | -94.53% | +87.81% |
Average DrawdownAverage peak-to-trough decline | -10.58% | -67.75% | +57.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.33% | 10.13% | -6.80% |
Volatility
XLC vs. SH - Volatility Comparison
The current volatility for Communication Services Select Sector SPDR Fund (XLC) is 3.57%, while ProShares Short S&P500 (SH) has a volatility of 4.33%. This indicates that XLC experiences smaller price fluctuations and is considered to be less risky than SH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLC | SH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.57% | 4.33% | -0.76% |
Volatility (6M)Calculated over the trailing 6-month period | 9.65% | 9.59% | +0.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.28% | 12.28% | +1.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.68% | 16.91% | +3.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.17% | 18.04% | +4.13% |
XLC vs. SH - Expense Ratio Comparison
XLC has a 0.13% expense ratio, which is lower than SH's 0.90% expense ratio.
Dividends
XLC vs. SH - Dividend Comparison
XLC's dividend yield for the trailing twelve months is around 1.25%, less than SH's 4.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
SH ProShares Short S&P500 | 4.43% | 4.49% | 6.20% | 5.37% | 1.08% | 0.00% | 0.16% | 1.76% | 1.01% | 0.06% |
XLC Communication Services Select Sector SPDR Fund | 1.25% | 1.13% | 0.99% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% |
Frequently Asked Questions
XLC and SH 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.
SH has higher volatility (4.33%) compared to XLC (3.57%). In terms of maximum drawdown, XLC dropped -46.65% vs SH's -94.66%.
On 5-year performance, XLC leads with 8.03% vs -8.68% for SH. On fees, XLC is cheaper at 0.13% per year. On volatility, XLC has been the lower-risk option at 3.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XLC has performed better with a 8.03% return vs -8.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLC is cheaper with a 0.13% expense ratio, compared with 0.90% for SH.
SH has the higher dividend yield at 4.43%, compared with 1.25% for XLC.
XLC is categorized as Communications Equities, while SH is Inverse Equities. XLC tracks S&P Communication Services Select Sector Index, while SH tracks S&P 500 (-100%). They also come from different issuers: State Street and ProShares. Their fees differ too: 0.13% for XLC and 0.90% for SH.
XLC currently has the higher Sharpe Ratio (0.69 vs -1.22), 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.
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