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XLI vs. SCHM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLI vs. SCHM

Last updated Jun 12, 2026

XLI (Industrial Select Sector SPDR Fund) and SCHM (Schwab US Mid-Cap ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while SCHM is a Mid Cap Blend Equities fund tracking the Dow Jones US Total Stock Market Mid-Cap. Both are passively managed. Over the past 10 years, XLI returned 14.09%/yr vs 11.48%/yr for SCHM. Their correlation of 0.87 suggests significant overlap in exposure. XLI charges 0.08%/yr vs 0.04%/yr for SCHM.

Performance

XLI vs. SCHM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and Schwab US Mid-Cap ETF (SCHM). 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 13.23% return, which is significantly lower than SCHM's 18.78% return. Over the past 10 years, XLI has outperformed SCHM with an annualized return of 14.09%, while SCHM has yielded a comparatively lower 11.48% annualized return.

XLI

1D
3.24%
1M
0.46%
YTD
13.23%
6M
11.74%
1Y
23.07%
3Y*
21.10%
5Y*
12.80%
10Y*
14.09%

SCHM

1D
2.98%
1M
3.25%
YTD
18.78%
6M
15.85%
1Y
31.34%
3Y*
17.28%
5Y*
7.82%
10Y*
11.48%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLI vs. SCHM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLI
Industrial Select Sector SPDR Fund		13.23%19.35%17.31%18.13%-5.57%21.08%10.91%29.08%-13.25%23.98%
SCHM
Schwab US Mid-Cap ETF		18.78%10.17%11.98%16.69%-17.07%19.36%15.26%27.48%-8.77%19.60%

Correlation

The correlation between XLI and SCHM is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.82

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

0.87

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

0.88

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

0.86

Correlation (All Time)
Calculated using the full available price history since Jan 13, 2011

0.87

The correlation between XLI and SCHM has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

XLI vs. SCHM - Sectors Allocation Comparison

Sectors
XLI
SCHM

Industrials

90.7%
21.6%

Utilities

4.8%
3.0%

Technology

4.0%
22.5%

Consumer Cyclical

0.5%
9.7%

Basic Materials

-

4.9%

Communication Services

-

2.5%

Consumer Defensive

-

3.6%

Energy

-

3.6%

Financial Services

-

10.9%

Healthcare

-

11.1%

Real Estate

-

6.5%

Industrials

XLI
90.7%
SCHM
21.6%

Utilities

XLI
4.8%
SCHM
3.0%

Technology

XLI
4.0%
SCHM
22.5%

Consumer Cyclical

XLI
0.5%
SCHM
9.7%

Basic Materials

XLI

-

SCHM
4.9%

Communication Services

XLI

-

SCHM
2.5%

Consumer Defensive

XLI

-

SCHM
3.6%

Energy

XLI

-

SCHM
3.6%

Financial Services

XLI

-

SCHM
10.9%

Healthcare

XLI

-

SCHM
11.1%

Real Estate

XLI

-

SCHM
6.5%

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

Schwab US Mid-Cap ETF

Often compared with XLI:
XLI vs. VISXLI vs. PAVEXLI vs. XLKXLI vs. SPYXLI vs. FIDUXLI vs. ITAXLI vs. AIRR
Often compared with SCHM:
SCHM vs. SCHASCHM vs. VOSCHM vs. VOOSCHM vs. IJHSCHM vs. SWMCXSCHM vs. VOTSCHM vs. SPMD

Return for Risk

XLI vs. SCHM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLI
XLI Risk / Return Rank: 5050
Overall Rank
XLI Sharpe Ratio Rank: 5050
Sharpe Ratio Rank
XLI Sortino Ratio Rank: 5151
Sortino Ratio Rank
XLI Omega Ratio Rank: 4747
Omega Ratio Rank
XLI Calmar Ratio Rank: 4646
Calmar Ratio Rank
XLI Martin Ratio Rank: 5353
Martin Ratio Rank
SCHM
SCHM Risk / Return Rank: 7575
Overall Rank
SCHM Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
SCHM Sortino Ratio Rank: 7474
Sortino Ratio Rank
SCHM Omega Ratio Rank: 7070
Omega Ratio Rank
SCHM Calmar Ratio Rank: 7878
Calmar Ratio Rank
SCHM Martin Ratio Rank: 8282
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. SCHM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Schwab US Mid-Cap ETF (SCHM). 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.

XLISCHMDifference
Sharpe ratioReturn per unit of total volatility
1.43
1.95

-0.52

Sortino ratioReturn per unit of downside risk
2.09
2.75

-0.66

Omega ratioGain probability vs. loss probability

1.25

1.34

-0.09

Calmar ratioReturn relative to maximum drawdown

1.90

3.38

-1.48

Martin ratioReturn relative to average drawdown

7.47

13.51

-6.04

XLI vs. SCHM - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.43, which is comparable to the SCHM Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of XLI and SCHM, 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. SCHM - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than SCHM's maximum drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for XLI and SCHM.

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Drawdown Indicators

XLISCHMDifference

Max Drawdown

Largest peak-to-trough decline

-62.26%

-42.43%

-19.83%

Max Drawdown (1Y)

Largest decline over 1 year

-12.21%

-9.32%

-2.89%

Max Drawdown (3Y)

Largest decline over 3 years

-18.49%

-23.27%

+4.78%

Max Drawdown (5Y)

Largest decline over 5 years

-21.64%

-26.46%

+4.82%

Max Drawdown (10Y)

Largest decline over 10 years

-42.33%

-42.43%

+0.10%

Current Drawdown

Current decline from peak

-1.82%

-0.39%

-1.43%

Average Drawdown

Average peak-to-trough decline

-9.20%

-5.65%

-3.55%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.10%

2.33%

+0.77%

Volatility

XLI vs. SCHM - Volatility Comparison

Industrial Select Sector SPDR Fund (XLI) has a higher volatility of 6.22% compared to Schwab US Mid-Cap ETF (SCHM) at 5.59%. This indicates that XLI's price experiences larger fluctuations and is considered to be riskier than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XLISCHMDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.22%

5.59%

+0.63%

Volatility (6M)

Calculated over the trailing 6-month period

13.69%

12.45%

+1.24%

Volatility (1Y)

Calculated over the trailing 1-year period

16.16%

16.14%

+0.02%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.56%

19.65%

-2.09%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.04%

20.50%

-0.46%

XLI vs. SCHM - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is higher than SCHM'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. SCHM - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.17%, less than SCHM's 1.22% yield.

PositionTTM20252024202320222021202020192018201720162015
SCHM
Schwab US Mid-Cap ETF		1.22%1.46%1.43%1.50%1.67%1.13%1.31%1.48%1.56%1.27%1.51%1.54%
XLI
Industrial Select Sector SPDR Fund		1.17%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 SCHM have a correlation of 0.82, 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 SCHM (5.59%). In terms of maximum drawdown, XLI dropped -62.26% vs SCHM's -42.43%.

On 10-year performance, XLI leads with 14.09% vs 11.48% for SCHM. On fees, SCHM is cheaper at 0.04% per year. On volatility, SCHM has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLI has performed better with a 14.09% return vs 11.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

SCHM has the higher dividend yield at 1.22%, compared with 1.17% for XLI.

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

SCHM currently has the higher Sharpe Ratio (1.95 vs 1.43), 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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