XLC vs. SHLD

Last updated Jun 16, 2026

XLC (Communication Services Select Sector SPDR Fund) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, XLC returned 10.72% vs 7.35% for SHLD. At a 0.31 correlation, their price movements are largely independent. XLC charges 0.13%/yr vs 0.50%/yr for SHLD.

Performance

XLC vs. SHLD - Performance Comparison

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

Returns By Period

In the year-to-date period, XLC achieves a -4.39% return, which is significantly lower than SHLD's -2.33% return.

XLC

• 1D: 0.48%
• 1M: -3.35%
• YTD: -4.39%
• 6M: -3.14%
• 1Y: 10.72%
• 3Y*: 21.42%
• 5Y*: 8.31%
• 10Y*: —

SHLD

• 1D: -0.85%
• 1M: 1.51%
• YTD: -2.33%
• 6M: -1.40%
• 1Y: 7.35%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLC vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XLC Communication Services Select Sector SPDR Fund	-4.39%	23.08%	34.71%	8.56%
SHLD Global X Defense Tech ETF	-2.33%	74.16%	35.03%	12.89%

Correlation

The correlation between XLC and SHLD is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.31

XLC vs. SHLD - Sectors Allocation Comparison

Sectors	XLC	SHLD
Communication Services	95.1%	-
Technology	4.7%	12.2%
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	87.8%
Real Estate	-	-
Utilities	-	-

Return for Risk

XLC vs. SHLD — Risk / Return Rank

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

XLC

XLC Risk / Return Rank: 24
XLC Sharpe Ratio Rank: 25
XLC Sortino Ratio Rank: 25
XLC Omega Ratio Rank: 23
XLC Calmar Ratio Rank: 24
XLC Martin Ratio Rank: 26

SHLD

SHLD Risk / Return Rank: 14
SHLD Sharpe Ratio Rank: 14
SHLD Sortino Ratio Rank: 14
SHLD Omega Ratio Rank: 13
SHLD Calmar Ratio Rank: 14
SHLD Martin Ratio Rank: 14

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	0.81	0.30	+0.51
Sortino ratio: Return per unit of downside risk	1.25	0.61	+0.65
Omega ratio: Gain probability vs. loss probability	1.14	1.07	+0.07
Calmar ratio: Return relative to maximum drawdown	1.02	0.37	+0.65
Martin ratio: Return relative to average drawdown	3.21	0.90	+2.31

XLC vs. SHLD - Sharpe Ratio Comparison

The current XLC Sharpe Ratio is 0.81, which is higher than the SHLD Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of XLC and SHLD, 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. SHLD - Drawdown Comparison

The maximum XLC drawdown since its inception was -46.65%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for XLC and SHLD.

Drawdown Indicators

	XLC	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-46.65%	-20.10%	-26.55%
Max Drawdown (1Y) Largest decline over 1 year	-10.57%	-20.10%	+9.53%
Max Drawdown (3Y) Largest decline over 3 years	-17.97%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-46.65%	—	—
Current Drawdown Current decline from peak	-6.27%	-18.89%	+12.62%
Average Drawdown Average peak-to-trough decline	-10.58%	-3.37%	-7.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.35%	8.21%	-4.86%

Volatility

XLC vs. SHLD - Volatility Comparison

The current volatility for Communication Services Select Sector SPDR Fund (XLC) is 3.61%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.07%. This indicates that XLC experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLC	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.61%	9.07%	-5.46%
Volatility (6M) Calculated over the trailing 6-month period	9.66%	19.95%	-10.29%
Volatility (1Y) Calculated over the trailing 1-year period	13.25%	24.49%	-11.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.68%	21.28%	-0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.17%	21.28%	+0.89%

XLC vs. SHLD - Expense Ratio Comparison

XLC has a 0.13% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

XLC vs. SHLD - Dividend Comparison

XLC's dividend yield for the trailing twelve months is around 1.24%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%
XLC Communication Services Select Sector SPDR Fund	1.24%	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 SHLD in my portfolio?

XLC and SHLD have a correlation of 0.29, 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 SHLD?

SHLD has higher volatility (9.07%) compared to XLC (3.61%). In terms of maximum drawdown, XLC dropped -46.65% vs SHLD's -20.10%.

Which ETF is better, XLC or SHLD?

On 1-year performance, XLC leads with 10.72% vs 7.35% for SHLD. On fees, XLC is cheaper at 0.13% per year. On volatility, XLC has been the lower-risk option at 3.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLC or SHLD?

Over the 1-year period, XLC has performed better with a 10.72% return vs 7.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLC or SHLD?

XLC is cheaper with a 0.13% expense ratio, compared with 0.50% for SHLD.

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

XLC has the higher dividend yield at 1.24%, compared with 0.56% for SHLD.

What is the main difference between XLC and SHLD?

XLC is categorized as Communications Equities, while SHLD is Aerospace & Defense. XLC tracks S&P Communication Services Select Sector Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: State Street and Global X. Their fees differ too: 0.13% for XLC and 0.50% for SHLD.

Which has better risk-adjusted returns?

XLC currently has the higher Sharpe Ratio (0.81 vs 0.30), 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.