XLE vs. PAA
XLE (State Street Energy Select Sector SPDR ETF) is Energy Equities fund tracking the Energy Select Sector Index, while PAA (Plains All American Pipeline, L.P.) is a stock. Over the past 10 years, XLE returned 10.02%/yr vs 5.94%/yr for PAA. At a 0.47 correlation, their price movements are largely independent.
Performance
XLE vs. PAA - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with XLE having a 31.32% return and PAA slightly higher at 32.09%. Over the past 10 years, XLE has outperformed PAA with an annualized return of 10.02%, while PAA has yielded a comparatively lower 5.94% annualized return.
XLE
- 1D
- 1.14%
- 1M
- 4.72%
- YTD
- 31.32%
- 6M
- 30.37%
- 1Y
- 44.35%
- 3Y*
- 16.51%
- 5Y*
- 20.33%
- 10Y*
- 10.02%
PAA
- 1D
- 0.88%
- 1M
- 4.97%
- YTD
- 32.09%
- 6M
- 35.41%
- 1Y
- 42.03%
- 3Y*
- 29.12%
- 5Y*
- 22.64%
- 10Y*
- 5.94%
XLE vs. PAA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 31.32% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
PAA Plains All American Pipeline, L.P. | 32.09% | 14.30% | 21.38% | 39.18% | 35.79% | 22.24% | -50.79% | -2.28% | 2.31% | -31.34% |
Correlation
The correlation between XLE and PAA is 0.58, 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 | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.66 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998 | 0.47 |
The correlation between XLE and PAA shifts across timeframes, from 0.47 (all time) to 0.66 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLE vs. PAA — Risk / Return Rank
XLE
PAA
XLE vs. PAA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and Plains All American Pipeline, L.P. (PAA). 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 | PAA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.11 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.38 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 3.70 | 2.91 | +0.79 |
| Martin ratioReturn relative to average drawdown | 10.59 | 8.41 | +2.18 |
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 | PAA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.18 | 2.29 | -0.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.79 | 0.85 | -0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.34 | 0.14 | +0.20 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.31 | 0.31 | 0.00 |
Drawdowns
XLE vs. PAA - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum PAA drawdown of -91.99%. Use the drawdown chart below to compare losses from any high point for XLE and PAA.
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Drawdown Indicators
| XLE | PAA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -71.26% | -91.99% | +20.73% |
Max Drawdown (1Y)Largest decline over 1 year | -12.05% | -14.53% | +2.48% |
Max Drawdown (3Y)Largest decline over 3 years | -20.14% | -22.26% | +2.12% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -26.11% | +0.07% |
Max Drawdown (10Y)Largest decline over 10 years | -66.81% | -87.92% | +21.11% |
Current DrawdownCurrent decline from peak | -6.76% | -8.58% | +1.82% |
Average DrawdownAverage peak-to-trough decline | -17.98% | -25.77% | +7.79% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.20% | 5.01% | -0.81% |
Volatility
XLE vs. PAA - Volatility Comparison
State Street Energy Select Sector SPDR ETF (XLE) and Plains All American Pipeline, L.P. (PAA) have volatilities of 7.07% and 7.29%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLE | PAA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.07% | 7.29% | -0.22% |
Volatility (6M)Calculated over the trailing 6-month period | 16.58% | 14.05% | +2.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.48% | 18.45% | +2.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.03% | 26.80% | -0.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.58% | 41.83% | -12.25% |
Dividends
XLE vs. PAA - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 2.56%, less than PAA's 7.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PAA Plains All American Pipeline, L.P. | 7.00% | 8.46% | 7.44% | 7.06% | 7.08% | 7.71% | 10.92% | 7.50% | 5.99% | 9.45% | 8.21% | 11.93% |
XLE State Street Energy Select Sector SPDR ETF | 2.56% | 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 PAA have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PAA has higher volatility (7.29%) compared to XLE (7.07%). In terms of maximum drawdown, XLE dropped -71.26% vs PAA's -91.99%.
PAA currently has the higher Sharpe Ratio (2.29 vs 2.18), 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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