XLC vs. XLB
XLC (Communication Services Select Sector SPDR Fund) and XLB (Materials Select Sector SPDR ETF) are both exchange-traded funds - XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index, while XLB is a Materials fund tracking the Materials Select Sector Index. Both are passively managed. Over the past 5 years, XLC returned 7.29%/yr vs 6.39%/yr for XLB. A 0.55 correlation means they provide meaningful diversification when combined. Both charge a 0.13% expense ratio.
Performance
XLC vs. XLB - Performance Comparison
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Returns By Period
In the year-to-date period, XLC achieves a -5.99% return, which is significantly lower than XLB's 11.38% return.
XLC
- 1D
- -0.69%
- 1M
- 0.79%
- 6M
- -2.47%
- YTD
- -5.99%
- 1Y
- 3.53%
- 3Y*
- 20.18%
- 5Y*
- 7.29%
- 10Y*
- —
- ALL TIME*
- 11.40%
XLB
- 1D
- 0.14%
- 1M
- -2.94%
- 6M
- 4.82%
- YTD
- 11.38%
- 1Y
- 12.51%
- 3Y*
- 8.22%
- 5Y*
- 6.39%
- 10Y*
- 9.66%
- ALL TIME*
- 8.27%
XLC vs. XLB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
XLC Communication Services Select Sector SPDR Fund | -5.99% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
XLB Materials Select Sector SPDR ETF | 11.38% | 9.94% | 0.15% | 12.46% | -12.30% | 27.44% | 20.46% | 24.13% | -14.25% |
Correlation
The correlation between XLC and XLB is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.55 |
Over the past year, the correlation between XLC and XLB has dropped to 0.30 - well below their long-term average of 0.55, suggesting their price drivers have been diverging.
XLC vs. XLB - Sectors Allocation Comparison
Sectors
XLC
XLB
Communication Services
-
Technology
-
Basic Materials
-
Consumer Cyclical
-
Consumer Defensive
-
-
Energy
-
-
Financial Services
-
-
Healthcare
-
-
Industrials
-
Real Estate
-
-
Utilities
-
-
Communication Services
XLC
XLB
-
Technology
XLC
XLB
-
Basic Materials
XLC
-
XLB
Consumer Cyclical
XLC
-
XLB
Consumer Defensive
XLC
-
XLB
-
Energy
XLC
-
XLB
-
Financial Services
XLC
-
XLB
-
Healthcare
XLC
-
XLB
-
Industrials
XLC
-
XLB
Real Estate
XLC
-
XLB
-
Utilities
XLC
-
XLB
-
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Return for Risk
XLC vs. XLB — Risk / Return Rank
XLC
XLB
XLC vs. XLB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) and Materials Select Sector SPDR ETF (XLB). 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 | XLB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.46 | ||
| Sortino ratioReturn per unit of downside risk | -0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.13 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 0.31 | 1.01 | -0.71 |
| Martin ratioReturn relative to average drawdown | 0.84 | 2.97 | -2.13 |
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Drawdowns
XLC vs. XLB - Drawdown Comparison
The maximum XLC drawdown since its inception was -46.65%, smaller than the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for XLC and XLB.
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Drawdown Indicators
| XLC | XLB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -46.65% | -59.83% | +13.18% |
Max Drawdown (1Y)Largest decline over 1 year | -11.57% | -12.38% | +0.81% |
Max Drawdown (3Y)Largest decline over 3 years | -17.97% | -23.17% | +5.20% |
Max Drawdown (5Y)Largest decline over 5 years | -46.65% | -24.72% | -21.93% |
Max Drawdown (10Y)Largest decline over 10 years | — | -37.27% | — |
Current DrawdownCurrent decline from peak | -7.84% | -5.80% | -2.04% |
Average DrawdownAverage peak-to-trough decline | -10.55% | -10.81% | +0.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.22% | 4.22% | 0.00% |
Volatility
XLC vs. XLB - Volatility Comparison
Communication Services Select Sector SPDR Fund (XLC) has a higher volatility of 5.32% compared to Materials Select Sector SPDR ETF (XLB) at 4.95%. This indicates that XLC's price experiences larger fluctuations and is considered to be riskier than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLC | XLB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.32% | 4.95% | +0.37% |
Volatility (6M)Calculated over the trailing 6-month period | 11.11% | 13.73% | -2.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.95% | 17.55% | -3.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.79% | 19.03% | +1.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.13% | 20.64% | +1.49% |
XLC vs. XLB - Expense Ratio Comparison
Both XLC and XLB have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
XLC vs. XLB - Dividend Comparison
XLC's dividend yield for the trailing twelve months is around 1.30%, less than XLB's 1.69% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 1.69% | 1.92% | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% |
XLC Communication Services Select Sector SPDR Fund | 1.30% | 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 XLB have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLC has higher volatility (5.32%) compared to XLB (4.95%). In terms of maximum drawdown, XLC dropped -46.65% vs XLB's -59.83%.
On 5-year performance, XLC leads with 7.29% vs 6.39% for XLB. Both ETFs have the same 0.13% expense ratio. On volatility, XLB has been the lower-risk option at 4.95%. 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 7.29% return vs 6.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLC and XLB have the same expense ratio: 0.13% per year.
XLB has the higher dividend yield at 1.69%, compared with 1.30% for XLC.
XLC is categorized as Communications Equities, while XLB is Materials. XLC tracks S&P Communication Services Select Sector Index, while XLB tracks Materials Select Sector Index.
XLB currently has the higher Sharpe Ratio (0.72 vs 0.26), 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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