XLI vs. SHLD

Last updated Jun 14, 2026

XLI (Industrial Select Sector SPDR Fund) and SHLD (Global X Defense Tech ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index. Both are passively managed. Over the past year, XLI returned 25.17% vs 8.26% for SHLD. A 0.57 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.50%/yr for SHLD.

Performance

XLI vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and Global X Defense Tech ETF (SHLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLI achieves a 13.90% return, which is significantly higher than SHLD's -1.50% return.

XLI

• 1D: 0.59%
• 1M: 2.79%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

SHLD

• 1D: -2.04%
• 1M: 2.37%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLI vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XLI Industrial Select Sector SPDR Fund	13.90%	19.35%	17.31%	9.31%
SHLD Global X Defense Tech ETF	-1.50%	74.16%	35.03%	12.89%

Correlation

The correlation between XLI and SHLD is 0.51, 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	0.51
Correlation (All Time) Calculated using the full available price history since Sep 13, 2023	0.57

The correlation between XLI and SHLD has been stable across timeframes, ranging from 0.51 to 0.57 - a consistent structural relationship.

XLI vs. SHLD - Sectors Allocation Comparison

Sectors	XLI	SHLD
Industrials	90.9%	87.8%
Utilities	4.8%	-
Technology	3.8%	12.2%
Consumer Cyclical	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

XLI vs. SHLD — Risk / Return Rank

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

XLI

XLI Risk / Return Rank: 48
XLI Sharpe Ratio Rank: 49
XLI Sortino Ratio Rank: 50
XLI Omega Ratio Rank: 46
XLI Calmar Ratio Rank: 45
XLI Martin Ratio Rank: 52

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Global X Defense Tech ETF (SHLD). 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.

	XLI	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	1.50	0.43	+1.07
Sortino ratio: Return per unit of downside risk	2.17	0.78	+1.39
Omega ratio: Gain probability vs. loss probability	1.26	1.09	+0.17
Calmar ratio: Return relative to maximum drawdown	1.98	0.52	+1.46
Martin ratio: Return relative to average drawdown	7.82	1.28	+6.53

XLI vs. SHLD - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is higher than the SHLD Sharpe Ratio of 0.43. The chart below compares the historical Sharpe Ratios of XLI and SHLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XLI vs. SHLD - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than SHLD's maximum drawdown of -20.10%. Use the drawdown chart below to compare losses from any high point for XLI and SHLD.

Drawdown Indicators

	XLI	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-20.10%	-42.16%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-20.10%	+7.89%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	—	—
Current Drawdown Current decline from peak	-1.24%	-18.20%	+16.96%
Average Drawdown Average peak-to-trough decline	-9.20%	-3.34%	-5.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	8.12%	-5.03%

Volatility

XLI vs. SHLD - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 6.22%, while Global X Defense Tech ETF (SHLD) has a volatility of 9.05%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	9.05%	-2.83%
Volatility (6M) Calculated over the trailing 6-month period	13.59%	19.94%	-6.35%
Volatility (1Y) Calculated over the trailing 1-year period	16.17%	24.55%	-8.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.55%	21.29%	-3.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.04%	21.29%	-1.25%

XLI vs. SHLD - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than SHLD's 0.50% expense ratio.

Dividends

XLI vs. SHLD - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, more than SHLD's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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

Can I hold both XLI and SHLD in my portfolio?

XLI and SHLD have a correlation of 0.51, 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 SHLD?

SHLD has higher volatility (9.05%) compared to XLI (6.22%). In terms of maximum drawdown, XLI dropped -62.26% vs SHLD's -20.10%.

Which ETF is better, XLI or SHLD?

On 1-year performance, XLI leads with 25.17% vs 8.26% for SHLD. On fees, XLI is cheaper at 0.08% per year. On volatility, XLI has been the lower-risk option at 6.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLI or SHLD?

Over the 1-year period, XLI has performed better with a 25.17% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or SHLD?

XLI is cheaper with a 0.08% expense ratio, compared with 0.50% for SHLD.

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

XLI has the higher dividend yield at 1.16%, compared with 0.56% for SHLD.

What is the main difference between XLI and SHLD?

XLI is categorized as Industrials Equities, while SHLD is Aerospace & Defense. XLI tracks Industrial Select Sector Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: State Street and Global X. Their fees differ too: 0.08% for XLI and 0.50% for SHLD.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.50 vs 0.43), 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.