XLI vs. VT

Last updated Jun 14, 2026

XLI (Industrial Select Sector SPDR Fund) and VT (Vanguard Total World Stock ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while VT is a Global Equities fund tracking the FTSE Global All Cap Index. Both are passively managed. Over the past 10 years, XLI returned 14.15%/yr vs 12.93%/yr for VT. Their correlation of 0.84 suggests significant overlap in exposure. XLI charges 0.08%/yr vs 0.06%/yr for VT.

Performance

XLI vs. VT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and Vanguard Total World Stock ETF (VT). 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 VT's 11.06% return. Over the past 10 years, XLI has outperformed VT with an annualized return of 14.15%, while VT has yielded a comparatively lower 12.93% annualized return.

XLI

• 1D: 0.59%
• 1M: 0.96%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

VT

• 1D: 0.44%
• 1M: 0.17%
• YTD: 11.06%
• 6M: 11.82%
• 1Y: 27.43%
• 3Y*: 19.71%
• 5Y*: 10.65%
• 10Y*: 12.93%

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

XLI vs. VT - 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%
VT Vanguard Total World Stock ETF	11.06%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%

Correlation

The correlation between XLI and VT 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	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008	0.84

The correlation between XLI and VT shifts across timeframes, from 0.72 (1 year) to 0.84 (all time), reflecting how their relationship changes across market environments.

XLI vs. VT - Sectors Allocation Comparison

Sectors	XLI	VT
Industrials	90.9%	12.0%
Utilities	4.8%	2.7%
Technology	3.8%	27.8%
Consumer Cyclical	0.5%	9.5%
Basic Materials	-	4.2%
Communication Services	-	8.3%
Consumer Defensive	-	4.8%
Energy	-	4.3%
Financial Services	-	15.9%
Healthcare	-	8.1%
Real Estate	-	2.4%

Return for Risk

XLI vs. VT — 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

VT

VT Risk / Return Rank: 68
VT Sharpe Ratio Rank: 69
VT Sortino Ratio Rank: 68
VT Omega Ratio Rank: 69
VT Calmar Ratio Rank: 62
VT Martin Ratio Rank: 72

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. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Vanguard Total World Stock ETF (VT). 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	VT	Difference
Sharpe ratio: Return per unit of total volatility	1.50	1.94	-0.44
Sortino ratio: Return per unit of downside risk	2.17	2.67	-0.50
Omega ratio: Gain probability vs. loss probability	1.26	1.35	-0.09
Calmar ratio: Return relative to maximum drawdown	1.98	2.68	-0.70
Martin ratio: Return relative to average drawdown	7.82	11.67	-3.85

XLI vs. VT - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is comparable to the VT Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of XLI and VT, 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. VT - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, which is greater than VT's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for XLI and VT.

Drawdown Indicators

	XLI	VT	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-50.27%	-11.99%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-9.67%	-2.54%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-16.51%	-1.98%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-26.38%	+4.74%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-34.24%	-8.09%
Current Drawdown Current decline from peak	-1.24%	-1.92%	+0.68%
Average Drawdown Average peak-to-trough decline	-9.20%	-7.01%	-2.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	2.22%	+0.87%

Volatility

XLI vs. VT - Volatility Comparison

Industrial Select Sector SPDR Fund (XLI) has a higher volatility of 6.22% compared to Vanguard Total World Stock ETF (VT) at 5.26%. This indicates that XLI's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	5.26%	+0.96%
Volatility (6M) Calculated over the trailing 6-month period	13.59%	11.01%	+2.58%
Volatility (1Y) Calculated over the trailing 1-year period	16.17%	13.38%	+2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.55%	16.15%	+1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.04%	17.27%	+2.77%

XLI vs. VT - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is higher than VT's 0.06% 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. VT - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, less than VT's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VT Vanguard Total World Stock ETF	1.61%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%
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 VT in my portfolio?

XLI and VT 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.

Which is riskier, XLI or VT?

XLI has higher volatility (6.22%) compared to VT (5.26%). In terms of maximum drawdown, XLI dropped -62.26% vs VT's -50.27%.

Which ETF is better, XLI or VT?

On 10-year performance, XLI leads with 14.15% vs 12.93% for VT. On fees, VT is cheaper at 0.06% per year. On volatility, VT has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLI or VT?

Over the 10-year period, XLI has performed better with a 14.15% return vs 12.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLI or VT?

VT is cheaper with a 0.06% expense ratio, compared with 0.08% for XLI.

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

VT has the higher dividend yield at 1.61%, compared with 1.16% for XLI.

What is the main difference between XLI and VT?

XLI is categorized as Industrials Equities, while VT is Global Equities. XLI tracks Industrial Select Sector Index, while VT tracks FTSE Global All Cap Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLI and 0.06% for VT.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (1.94 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.