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XLI vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLI vs. QUAL

Last updated Jun 9, 2026

XLI (Industrial Select Sector SPDR Fund) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, XLI returned 13.86%/yr vs 14.19%/yr for QUAL. Their correlation of 0.81 suggests significant overlap in exposure. XLI charges 0.08%/yr vs 0.15%/yr for QUAL.

Performance

XLI vs. QUAL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and iShares MSCI USA Quality Factor ETF (QUAL). 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 12.25% return, which is significantly higher than QUAL's 7.89% return. Both investments have delivered pretty close results over the past 10 years, with XLI having a 13.86% annualized return and QUAL not far ahead at 14.19%.

XLI

1D
-0.32%
1M
0.25%
YTD
12.25%
6M
13.16%
1Y
21.42%
3Y*
21.04%
5Y*
12.54%
10Y*
13.86%

QUAL

1D
0.32%
1M
1.62%
YTD
7.89%
6M
8.26%
1Y
19.70%
3Y*
19.43%
5Y*
11.82%
10Y*
14.19%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLI vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLI
Industrial Select Sector SPDR Fund		12.25%19.35%17.31%18.13%-5.57%21.08%10.91%29.08%-13.25%23.98%
QUAL
iShares MSCI USA Quality Factor ETF		7.89%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between XLI and QUAL is 0.72, 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

0.72

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

0.76

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

0.80

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

0.80

Correlation (All Time)
Calculated using the full available price history since Jul 19, 2013

0.81

The correlation between XLI and QUAL has been stable across timeframes, ranging from 0.72 to 0.81 - a consistent structural relationship.

XLI vs. QUAL - Sectors Allocation Comparison

Sectors
XLI
QUAL

Industrials

90.7%
8.2%

Utilities

4.8%
1.9%

Technology

4.0%
36.5%

Consumer Cyclical

0.5%
9.3%

Basic Materials

-

1.7%

Communication Services

-

11.1%

Consumer Defensive

-

4.9%

Energy

-

4.0%

Financial Services

-

11.5%

Healthcare

-

9.0%

Real Estate

-

1.8%

Industrials

XLI
90.7%
QUAL
8.2%

Utilities

XLI
4.8%
QUAL
1.9%

Technology

XLI
4.0%
QUAL
36.5%

Consumer Cyclical

XLI
0.5%
QUAL
9.3%

Basic Materials

XLI

-

QUAL
1.7%

Communication Services

XLI

-

QUAL
11.1%

Consumer Defensive

XLI

-

QUAL
4.9%

Energy

XLI

-

QUAL
4.0%

Financial Services

XLI

-

QUAL
11.5%

Healthcare

XLI

-

QUAL
9.0%

Real Estate

XLI

-

QUAL
1.8%

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 MSCI USA Quality Factor ETF

Often compared with XLI:
XLI vs. VISXLI vs. PAVEXLI vs. XLKXLI vs. SPYXLI vs. FIDUXLI vs. ITAXLI vs. AIRR
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

XLI vs. QUAL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLI
XLI Risk / Return Rank: 4343
Overall Rank
XLI Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
XLI Sortino Ratio Rank: 4646
Sortino Ratio Rank
XLI Omega Ratio Rank: 4040
Omega Ratio Rank
XLI Calmar Ratio Rank: 3939
Calmar Ratio Rank
XLI Martin Ratio Rank: 4646
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 5454
Overall Rank
QUAL Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 5353
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5252
Omega Ratio Rank
QUAL Calmar Ratio Rank: 4949
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6161
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. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and iShares MSCI USA Quality Factor ETF (QUAL). 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.

XLIQUALDifference
Sharpe ratioReturn per unit of total volatility
1.39
1.65

-0.26

Sortino ratioReturn per unit of downside risk
2.06
2.34

-0.28

Omega ratioGain probability vs. loss probability

1.24

1.29

-0.05

Calmar ratioReturn relative to maximum drawdown

1.76

2.19

-0.43

Martin ratioReturn relative to average drawdown

6.97

9.96

-2.99

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLI vs. QUAL - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.39, which is comparable to the QUAL Sharpe Ratio of 1.65. The chart below compares the historical Sharpe Ratios of XLI and QUAL, 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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Sharpe Ratios by Period

XLIQUALDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.39

1.65

-0.26

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.72

0.68

+0.04

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.70

0.79

-0.09

Sharpe Ratio (All Time)

Calculated using the full available price history

0.45

0.80

-0.34

Drawdowns

XLI vs. QUAL - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for XLI and QUAL.

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Drawdown Indicators

XLIQUALDifference

Max Drawdown

Largest peak-to-trough decline

-62.26%

-34.06%

-28.20%

Max Drawdown (1Y)

Largest decline over 1 year

-12.21%

-9.03%

-3.18%

Max Drawdown (3Y)

Largest decline over 3 years

-18.49%

-18.00%

-0.49%

Max Drawdown (5Y)

Largest decline over 5 years

-21.64%

-28.23%

+6.59%

Max Drawdown (10Y)

Largest decline over 10 years

-42.33%

-34.06%

-8.27%

Current Drawdown

Current decline from peak

-2.67%

-1.61%

-1.06%

Average Drawdown

Average peak-to-trough decline

-9.20%

-4.10%

-5.10%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.08%

1.98%

+1.10%

Volatility

XLI vs. QUAL - Volatility Comparison

Industrial Select Sector SPDR Fund (XLI) has a higher volatility of 3.98% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.12%. This indicates that XLI's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XLIQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.98%

3.12%

+0.86%

Volatility (6M)

Calculated over the trailing 6-month period

12.84%

9.28%

+3.56%

Volatility (1Y)

Calculated over the trailing 1-year period

15.47%

12.01%

+3.46%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.43%

17.35%

+0.08%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.99%

18.11%

+1.88%

XLI vs. QUAL - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than QUAL's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLI vs. QUAL - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.18%, more than QUAL's 0.88% yield.

PositionTTM20252024202320222021202020192018201720162015
QUAL
iShares MSCI USA Quality Factor ETF		0.88%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%
XLI
Industrial Select Sector SPDR Fund		1.18%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 QUAL have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLI has higher volatility (3.98%) compared to QUAL (3.12%). In terms of maximum drawdown, XLI dropped -62.26% vs QUAL's -34.06%.

On 10-year performance, QUAL leads with 14.19% vs 13.86% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, QUAL has been the lower-risk option at 3.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.19% return vs 13.86%. 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 0.15% for QUAL.

XLI has the higher dividend yield at 1.18%, compared with 0.88% for QUAL.

XLI is categorized as Industrials Equities, while QUAL is Large Cap Blend Equities. XLI tracks Industrial Select Sector Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLI and 0.15% for QUAL.

QUAL currently has the higher Sharpe Ratio (1.65 vs 1.39), 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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