XLE vs. DBC
XLE (State Street Energy Select Sector SPDR ETF) and DBC (Invesco DB Commodity Index Tracking Fund) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while DBC is a Commodities fund tracking the DBIQ Optimum Yield Diversified Commodity Index Excess Return. Both are passively managed. Over the past 10 years, XLE returned 9.99%/yr vs 8.83%/yr for DBC. A 0.63 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.85%/yr for DBC.
Performance
XLE vs. DBC - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with XLE having a 32.26% return and DBC slightly higher at 33.63%. Over the past 10 years, XLE has outperformed DBC with an annualized return of 9.99%, while DBC has yielded a comparatively lower 8.83% annualized return.
XLE
- 1D
- 0.07%
- 1M
- -1.18%
- YTD
- 32.26%
- 6M
- 29.34%
- 1Y
- 47.98%
- 3Y*
- 17.74%
- 5Y*
- 20.45%
- 10Y*
- 9.99%
DBC
- 1D
- -1.35%
- 1M
- -4.23%
- YTD
- 33.63%
- 6M
- 33.19%
- 1Y
- 44.46%
- 3Y*
- 14.67%
- 5Y*
- 12.47%
- 10Y*
- 8.83%
XLE vs. DBC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 32.26% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
DBC Invesco DB Commodity Index Tracking Fund | 33.63% | 8.10% | 2.18% | -6.19% | 19.34% | 41.36% | -7.84% | 11.84% | -11.63% | 4.86% |
Correlation
The correlation between XLE and DBC is 0.62, 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 | 0.62 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.65 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Feb 7, 2006 | 0.63 |
The correlation between XLE and DBC has been stable across timeframes, ranging from 0.60 to 0.65 - a consistent structural relationship.
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Return for Risk
XLE vs. DBC — Risk / Return Rank
XLE
DBC
XLE vs. DBC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and Invesco DB Commodity Index Tracking Fund (DBC). 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.
| XLE | DBC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.05 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.42 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 4.00 | 6.34 | -2.34 |
| Martin ratioReturn relative to average drawdown | 11.60 | 13.40 | -1.80 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XLE | DBC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.36 | 2.39 | -0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.79 | 0.65 | +0.14 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.34 | 0.50 | -0.16 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.31 | 0.11 | +0.20 |
Drawdowns
XLE vs. DBC - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum DBC drawdown of -76.36%. Use the drawdown chart below to compare losses from any high point for XLE and DBC.
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Drawdown Indicators
| XLE | DBC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -71.26% | -76.36% | +5.10% |
Max Drawdown (1Y)Largest decline over 1 year | -12.05% | -7.05% | -5.00% |
Max Drawdown (3Y)Largest decline over 3 years | -20.14% | -13.82% | -6.32% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -27.34% | +1.30% |
Max Drawdown (10Y)Largest decline over 10 years | -66.81% | -41.71% | -25.10% |
Current DrawdownCurrent decline from peak | -6.09% | -22.70% | +16.61% |
Average DrawdownAverage peak-to-trough decline | -17.98% | -46.22% | +28.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.15% | 3.33% | +0.82% |
Volatility
XLE vs. DBC - Volatility Comparison
State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 8.25% compared to Invesco DB Commodity Index Tracking Fund (DBC) at 6.56%. This indicates that XLE's price experiences larger fluctuations and is considered to be riskier than DBC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLE | DBC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.25% | 6.56% | +1.69% |
Volatility (6M)Calculated over the trailing 6-month period | 16.51% | 15.82% | +0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.50% | 18.73% | +1.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.01% | 19.18% | +6.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.58% | 17.81% | +11.77% |
XLE vs. DBC - Expense Ratio Comparison
XLE has a 0.08% expense ratio, which is lower than DBC's 0.85% expense ratio.
Dividends
XLE vs. DBC - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 2.54%, more than DBC's 2.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DBC Invesco DB Commodity Index Tracking Fund | 2.49% | 3.33% | 5.22% | 4.94% | 0.59% | 0.00% | 0.00% | 1.59% | 1.30% | 0.00% | 0.00% | 0.00% |
XLE State Street Energy Select Sector SPDR ETF | 2.54% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
XLE and DBC have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (8.25%) compared to DBC (6.56%). In terms of maximum drawdown, XLE dropped -71.26% vs DBC's -76.36%.
On 10-year performance, XLE leads with 9.99% vs 8.83% for DBC. On fees, XLE is cheaper at 0.08% per year. On volatility, DBC has been the lower-risk option at 6.56%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.99% return vs 8.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.85% for DBC.
XLE has the higher dividend yield at 2.54%, compared with 2.49% for DBC.
XLE is categorized as Energy Equities, while DBC is Commodities. XLE tracks Energy Select Sector Index, while DBC tracks DBIQ Optimum Yield Diversified Commodity Index Excess Return. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.08% for XLE and 0.85% for DBC.
DBC currently has the higher Sharpe Ratio (2.39 vs 2.36), 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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