XLI vs. SMH

Last updated Jun 13, 2026

XLI (Industrial Select Sector SPDR Fund) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, XLI returned 14.15%/yr vs 37.49%/yr for SMH. A 0.61 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.35%/yr for SMH.

Performance

XLI vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and VanEck Semiconductor ETF (SMH). 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 lower than SMH's 72.15% return. Over the past 10 years, XLI has underperformed SMH with an annualized return of 14.15%, while SMH has yielded a comparatively higher 37.49% annualized return.

XLI

• 1D: 0.59%
• 1M: 1.47%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 24.12%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

SMH

• 1D: 1.72%
• 1M: 8.30%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 136.32%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

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

XLI vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SMH VanEck Semiconductor ETF	72.15%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between XLI and SMH is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jun 5, 2000	0.61

The correlation between XLI and SMH has been stable across timeframes, ranging from 0.53 to 0.61 - a consistent structural relationship.

XLI vs. SMH - Sectors Allocation Comparison

Sectors	XLI	SMH
Industrials	90.7%	-
Utilities	4.8%	-
Technology	4.0%	100.0%
Consumer Cyclical	0.5%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

XLI vs. SMH — 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

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

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. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and VanEck Semiconductor ETF (SMH). 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	SMH	Difference
Sharpe ratio: Return per unit of total volatility	1.50	4.13	-2.63
Sortino ratio: Return per unit of downside risk	2.17	4.26	-2.09
Omega ratio: Gain probability vs. loss probability	1.26	1.60	-0.34
Calmar ratio: Return relative to maximum drawdown	1.98	9.18	-7.20
Martin ratio: Return relative to average drawdown	7.82	33.74	-25.92

XLI vs. SMH - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of XLI and SMH, 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. SMH - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XLI and SMH.

Drawdown Indicators

	XLI	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-84.96%	+22.70%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-14.93%	+2.72%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-35.74%	+17.25%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-45.30%	+23.66%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-45.30%	+2.97%
Current Drawdown Current decline from peak	-1.24%	-2.81%	+1.57%
Average Drawdown Average peak-to-trough decline	-9.20%	-41.04%	+31.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	4.06%	-0.97%

Volatility

XLI vs. SMH - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 6.22%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	16.25%	-10.03%
Volatility (6M) Calculated over the trailing 6-month period	13.59%	27.73%	-14.14%
Volatility (1Y) Calculated over the trailing 1-year period	16.17%	33.20%	-17.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.55%	35.47%	-17.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.04%	32.82%	-12.78%

XLI vs. SMH - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

XLI vs. SMH - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, more than SMH's 0.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMH VanEck Semiconductor ETF	0.18%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%
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 SMH in my portfolio?

XLI and SMH have a correlation of 0.54, 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 SMH?

SMH has higher volatility (16.25%) compared to XLI (6.22%). In terms of maximum drawdown, XLI dropped -62.26% vs SMH's -84.96%.

Which ETF is better, XLI or SMH?

On 10-year performance, SMH leads with 37.49% vs 14.15% for XLI. 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 SMH?

Over the 10-year period, SMH has performed better with a 37.49% return vs 14.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or SMH?

XLI is cheaper with a 0.08% expense ratio, compared with 0.35% for SMH.

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

XLI has the higher dividend yield at 1.16%, compared with 0.18% for SMH.

What is the main difference between XLI and SMH?

XLI is categorized as Industrials Equities, while SMH is Semiconductors. XLI tracks Industrial Select Sector Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: State Street and VanEck. Their fees differ too: 0.08% for XLI and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 1.50), 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.