XLC vs. VZ
XLC (Communication Services Select Sector SPDR Fund) is Communications Equities fund tracking the S&P Communication Services Select Sector Index, while VZ (Verizon Communications Inc.) is a stock. Over the past 5 years, XLC returned 8.03%/yr vs 2.74%/yr for VZ. At a 0.24 correlation, their price movements are largely independent.
Performance
XLC vs. VZ - Performance Comparison
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Returns By Period
In the year-to-date period, XLC achieves a -4.85% return, which is significantly lower than VZ's 21.97% return.
XLC
- 1D
- -0.42%
- 1M
- -4.66%
- YTD
- -4.85%
- 6M
- -3.59%
- 1Y
- 10.19%
- 3Y*
- 21.60%
- 5Y*
- 8.03%
- 10Y*
- —
VZ
- 1D
- 2.49%
- 1M
- 2.23%
- YTD
- 21.97%
- 6M
- 21.50%
- 1Y
- 19.39%
- 3Y*
- 18.39%
- 5Y*
- 2.74%
- 10Y*
- 4.44%
XLC vs. VZ - 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% |
VZ Verizon Communications Inc. | 21.97% | 8.86% | 13.14% | 2.71% | -20.02% | -7.55% | -0.13% | 13.83% | 21.16% |
Correlation
The correlation between XLC and VZ is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.24 |
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Return for Risk
XLC vs. VZ — Risk / Return Rank
XLC
VZ
XLC vs. VZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and Verizon Communications Inc. (VZ). 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 | VZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.41 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.18 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.86 | 1.43 | -0.57 |
| Martin ratioReturn relative to average drawdown | 2.73 | 3.06 | -0.32 |
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Drawdowns
XLC vs. VZ - Drawdown Comparison
The maximum XLC drawdown since its inception was -46.65%, smaller than the maximum VZ drawdown of -50.66%. Use the drawdown chart below to compare losses from any high point for XLC and VZ.
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Drawdown Indicators
| XLC | VZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.65% | -50.66% | +4.01% |
Max Drawdown (1Y)Largest decline over 1 year | -10.57% | -13.32% | +2.75% |
Max Drawdown (3Y)Largest decline over 3 years | -17.97% | -14.93% | -3.04% |
Max Drawdown (5Y)Largest decline over 5 years | -46.65% | -38.38% | -8.27% |
Max Drawdown (10Y)Largest decline over 10 years | — | -41.21% | — |
Current DrawdownCurrent decline from peak | -6.72% | -4.96% | -1.76% |
Average DrawdownAverage peak-to-trough decline | -10.58% | -14.82% | +4.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.33% | 6.23% | -2.90% |
Volatility
XLC vs. VZ - Volatility Comparison
The current volatility for Communication Services Select Sector SPDR Fund (XLC) is 3.57%, while Verizon Communications Inc. (VZ) has a volatility of 6.87%. This indicates that XLC experiences smaller price fluctuations and is considered to be less risky than VZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLC | VZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.57% | 6.87% | -3.30% |
Volatility (6M)Calculated over the trailing 6-month period | 9.65% | 17.91% | -8.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.28% | 22.78% | -9.50% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.68% | 21.66% | -0.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.17% | 20.36% | +1.81% |
Dividends
XLC vs. VZ - Dividend Comparison
XLC's dividend yield for the trailing twelve months is around 1.25%, less than VZ's 5.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 5.75% | 6.68% | 6.68% | 6.96% | 6.53% | 4.85% | 4.21% | 3.95% | 4.22% | 4.39% | 4.26% | 4.79% |
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% | 0.00% | 0.00% |
Frequently Asked Questions
XLC and VZ have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VZ has higher volatility (6.87%) compared to XLC (3.57%). In terms of maximum drawdown, XLC dropped -46.65% vs VZ's -50.66%.
VZ currently has the higher Sharpe Ratio (0.84 vs 0.69), 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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