XLI vs. SCHG

Last updated Jun 9, 2026

XLI (Industrial Select Sector SPDR Fund) and SCHG (Schwab U.S. Large-Cap Growth ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while SCHG is a Large Cap Growth Equities fund tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. Both are passively managed. Over the past 10 years, XLI returned 13.86%/yr vs 18.53%/yr for SCHG. A 0.74 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.04%/yr for SCHG.

Performance

XLI vs. SCHG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and Schwab U.S. Large-Cap Growth ETF (SCHG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLI achieves a 12.25% return, which is significantly higher than SCHG's 3.75% return. Over the past 10 years, XLI has underperformed SCHG with an annualized return of 13.86%, while SCHG has yielded a comparatively higher 18.53% annualized return.

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%

SCHG

• 1D: 0.15%
• 1M: -0.94%
• YTD: 3.75%
• 6M: 2.93%
• 1Y: 20.82%
• 3Y*: 24.03%
• 5Y*: 14.90%
• 10Y*: 18.53%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XLI vs. SCHG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SCHG Schwab U.S. Large-Cap Growth ETF	3.75%	17.50%	34.95%	50.10%	-31.80%	28.11%	39.14%	36.02%	-1.36%	28.05%

Correlation

The correlation between XLI and SCHG is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Dec 14, 2009	0.74

Over the past year, the correlation between XLI and SCHG has dropped to 0.52 - well below their long-term average of 0.74, suggesting their price drivers have been diverging.

XLI vs. SCHG - Sectors Allocation Comparison

Sectors	XLI	SCHG
Industrials	90.7%	5.8%
Utilities	4.8%	0.4%
Technology	4.0%	46.3%
Consumer Cyclical	0.5%	12.7%
Basic Materials	-	1.4%
Communication Services	-	16.0%
Consumer Defensive	-	1.7%
Energy	-	0.8%
Financial Services	-	6.7%
Healthcare	-	7.7%
Real Estate	-	0.5%

Return for Risk

XLI vs. SCHG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 44
XLI Sortino Ratio Rank: 46
XLI Omega Ratio Rank: 40
XLI Calmar Ratio Rank: 39
XLI Martin Ratio Rank: 46

SCHG

SCHG Risk / Return Rank: 36
SCHG Sharpe Ratio Rank: 42
SCHG Sortino Ratio Rank: 39
SCHG Omega Ratio Rank: 40
SCHG Calmar Ratio Rank: 29
SCHG Martin Ratio Rank: 32

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. SCHG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Schwab U.S. Large-Cap Growth ETF (SCHG). 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.

	XLI	SCHG	Difference
Sharpe ratio: Return per unit of total volatility	1.39	1.33	+0.06
Sortino ratio: Return per unit of downside risk	2.06	1.82	+0.24
Omega ratio: Gain probability vs. loss probability	1.24	1.24	0.00
Calmar ratio: Return relative to maximum drawdown	1.76	1.27	+0.49
Martin ratio: Return relative to average drawdown	6.97	4.25	+2.72
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. SCHG - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.39, which is comparable to the SCHG Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of XLI and SCHG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLI	SCHG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.39	1.33	+0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.67	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.70	0.86	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.83	-0.38

Drawdowns

XLI vs. SCHG - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than SCHG's maximum drawdown of -34.59%. Use the drawdown chart below to compare losses from any high point for XLI and SCHG.

Drawdown Indicators

	XLI	SCHG	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-34.59%	-27.67%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-16.41%	+4.20%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-23.39%	+4.90%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-34.59%	+12.95%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-34.59%	-7.74%
Current Drawdown Current decline from peak	-2.67%	-4.25%	+1.58%
Average Drawdown Average peak-to-trough decline	-9.20%	-5.20%	-4.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	4.91%	-1.83%

Volatility

XLI vs. SCHG - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 3.98%, while Schwab U.S. Large-Cap Growth ETF (SCHG) has a volatility of 4.52%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than SCHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	SCHG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.98%	4.52%	-0.54%
Volatility (6M) Calculated over the trailing 6-month period	12.84%	12.02%	+0.82%
Volatility (1Y) Calculated over the trailing 1-year period	15.47%	15.77%	-0.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.43%	22.31%	-4.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.99%	21.58%	-1.59%

XLI vs. SCHG - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is higher than SCHG's 0.04% expense ratio. However, 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. SCHG - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.18%, more than SCHG's 0.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHG Schwab U.S. Large-Cap Growth ETF	0.37%	0.36%	0.39%	0.46%	0.55%	0.42%	0.52%	0.82%	1.27%	1.01%	1.04%	1.22%
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

Can I hold both XLI and SCHG in my portfolio?

XLI and SCHG have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLI or SCHG?

SCHG has higher volatility (4.52%) compared to XLI (3.98%). In terms of maximum drawdown, XLI dropped -62.26% vs SCHG's -34.59%.

Which ETF is better, XLI or SCHG?

On 10-year performance, SCHG leads with 18.53% vs 13.86% for XLI. On fees, SCHG is cheaper at 0.04% per year. On volatility, XLI has been the lower-risk option at 3.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLI or SCHG?

Over the 10-year period, SCHG has performed better with a 18.53% return vs 13.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or SCHG?

SCHG is cheaper with a 0.04% expense ratio, compared with 0.08% for XLI.

Which ETF pays a higher dividend yield, XLI or SCHG?

XLI has the higher dividend yield at 1.18%, compared with 0.37% for SCHG.

What is the main difference between XLI and SCHG?

XLI is categorized as Industrials Equities, while SCHG is Large Cap Growth Equities. XLI tracks Industrial Select Sector Index, while SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.08% for XLI and 0.04% for SCHG.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.39 vs 1.33), 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.