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XLI vs. IAI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLI vs. IAI

Last updated Jun 13, 2026

XLI (Industrial Select Sector SPDR Fund) and IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while IAI is a Financials Equities fund tracking the DJ US Select / Investment Services. Both are passively managed. Over the past 10 years, XLI returned 14.15%/yr vs 19.37%/yr for IAI. A 0.75 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.41%/yr for IAI.

Performance

XLI vs. IAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XLI achieves a 13.90% return, which is significantly higher than IAI's 3.17% return. Over the past 10 years, XLI has underperformed IAI with an annualized return of 14.15%, while IAI has yielded a comparatively higher 19.37% annualized return.

XLI

1D
0.59%
1M
0.96%
YTD
13.90%
6M
13.10%
1Y
25.17%
3Y*
20.87%
5Y*
12.93%
10Y*
14.15%

IAI

1D
1.83%
1M
2.57%
YTD
3.17%
6M
2.78%
1Y
21.00%
3Y*
28.06%
5Y*
14.44%
10Y*
19.37%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLI vs. IAI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLI
Industrial Select Sector SPDR Fund		13.90%19.35%17.31%18.13%-5.57%21.08%10.91%29.08%-13.25%23.98%
IAI
iShares U.S. Broker-Dealers & Securities Exchanges ETF		3.17%25.80%34.37%15.27%-10.87%40.48%18.61%24.26%-9.47%28.86%

Correlation

The correlation between XLI and IAI is 0.53, 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

0.53

Correlation (3Y)
Calculated over the trailing 3-year period

0.67

Correlation (5Y)
Calculated over the trailing 5-year period

0.73

Correlation (10Y)
Calculated over the trailing 10-year period

0.73

Correlation (All Time)
Calculated using the full available price history since May 5, 2006

0.75

Over the past year, the correlation between XLI and IAI has dropped to 0.53 - well below their long-term average of 0.75, suggesting their price drivers have been diverging.

XLI vs. IAI - Sectors Allocation Comparison

Sectors
XLI
IAI

Industrials

90.7%

-

Utilities

4.8%

-

Technology

4.0%
0.1%

Consumer Cyclical

0.5%

-

Basic Materials

-

-

Communication Services

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

99.9%

Healthcare

-

-

Real Estate

-

-

Industrials

XLI
90.7%
IAI

-

Utilities

XLI
4.8%
IAI

-

Technology

XLI
4.0%
IAI
0.1%

Consumer Cyclical

XLI
0.5%
IAI

-

Basic Materials

XLI

-

IAI

-

Communication Services

XLI

-

IAI

-

Consumer Defensive

XLI

-

IAI

-

Energy

XLI

-

IAI

-

Financial Services

XLI

-

IAI
99.9%

Healthcare

XLI

-

IAI

-

Real Estate

XLI

-

IAI

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Industrial Select Sector SPDR Fund

iShares U.S. Broker-Dealers & Securities Exchanges ETF

Often compared with XLI:
XLI vs. VISXLI vs. PAVEXLI vs. XLKXLI vs. SPYXLI vs. FIDUXLI vs. ITAXLI vs. AIRR
Often compared with IAI:
IAI vs. KCEIAI vs. XLFIAI vs. SPYIAI vs. QQQIAI vs. KIEIAI vs. FASIAI vs. FXO

Return for Risk

XLI vs. IAI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLI
XLI Risk / Return Rank: 4848
Overall Rank
XLI Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
XLI Sortino Ratio Rank: 5050
Sortino Ratio Rank
XLI Omega Ratio Rank: 4646
Omega Ratio Rank
XLI Calmar Ratio Rank: 4545
Calmar Ratio Rank
XLI Martin Ratio Rank: 5252
Martin Ratio Rank
IAI
IAI Risk / Return Rank: 2929
Overall Rank
IAI Sharpe Ratio Rank: 3131
Sharpe Ratio Rank
IAI Sortino Ratio Rank: 3030
Sortino Ratio Rank
IAI Omega Ratio Rank: 2929
Omega Ratio Rank
IAI Calmar Ratio Rank: 2727
Calmar Ratio Rank
IAI Martin Ratio Rank: 2727
Martin Ratio Rank
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.

XLI vs. IAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). 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.

XLIIAIDifference
Sharpe ratioReturn per unit of total volatility
1.50
1.00

+0.50

Sortino ratioReturn per unit of downside risk
2.17
1.43

+0.75

Omega ratioGain probability vs. loss probability

1.26

1.18

+0.08

Calmar ratioReturn relative to maximum drawdown

1.98

1.17

+0.81

Martin ratioReturn relative to average drawdown

7.82

3.33

+4.49

XLI vs. IAI - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is higher than the IAI Sharpe Ratio of 1.00. The chart below compares the historical Sharpe Ratios of XLI and IAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

XLI vs. IAI - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, smaller than the maximum IAI drawdown of -75.46%. Use the drawdown chart below to compare losses from any high point for XLI and IAI.

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Drawdown Indicators

XLIIAIDifference

Max Drawdown

Largest peak-to-trough decline

-62.26%

-75.46%

+13.20%

Max Drawdown (1Y)

Largest decline over 1 year

-12.21%

-16.52%

+4.31%

Max Drawdown (3Y)

Largest decline over 3 years

-18.49%

-23.14%

+4.65%

Max Drawdown (5Y)

Largest decline over 5 years

-21.64%

-28.84%

+7.20%

Max Drawdown (10Y)

Largest decline over 10 years

-42.33%

-40.38%

-1.95%

Current Drawdown

Current decline from peak

-1.24%

-2.81%

+1.57%

Average Drawdown

Average peak-to-trough decline

-9.20%

-22.63%

+13.43%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.09%

5.80%

-2.71%

Volatility

XLI vs. IAI - Volatility Comparison

Industrial Select Sector SPDR Fund (XLI) and iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) have volatilities of 6.22% and 5.98%, 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

XLIIAIDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.22%

5.98%

+0.24%

Volatility (6M)

Calculated over the trailing 6-month period

13.59%

15.34%

-1.75%

Volatility (1Y)

Calculated over the trailing 1-year period

16.17%

19.44%

-3.27%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.55%

21.48%

-3.93%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.04%

22.85%

-2.81%

XLI vs. IAI - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than IAI's 0.41% expense ratio.

Dividends

XLI vs. IAI - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, more than IAI's 1.05% yield.

PositionTTM20252024202320222021202020192018201720162015
IAI
iShares U.S. Broker-Dealers & Securities Exchanges ETF		1.05%0.95%1.05%1.80%2.14%1.31%1.55%1.52%1.58%1.37%1.49%1.31%
XLI
Industrial Select Sector SPDR Fund		1.16%1.29%1.44%1.63%1.63%1.25%1.55%1.94%2.15%1.77%2.07%2.15%

Frequently Asked Questions

XLI and IAI have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLI has higher volatility (6.22%) compared to IAI (5.98%). In terms of maximum drawdown, XLI dropped -62.26% vs IAI's -75.46%.

On 10-year performance, IAI leads with 19.37% vs 14.15% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, IAI has been the lower-risk option at 5.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IAI has performed better with a 19.37% return vs 14.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLI is cheaper with a 0.08% expense ratio, compared with 0.41% for IAI.

XLI has the higher dividend yield at 1.16%, compared with 1.05% for IAI.

XLI is categorized as Industrials Equities, while IAI is Financials Equities. XLI tracks Industrial Select Sector Index, while IAI tracks DJ US Select / Investment Services. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLI and 0.41% for IAI.

XLI currently has the higher Sharpe Ratio (1.50 vs 1.00), 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.

Portfolio Optimizer

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