XLI vs. VZ
XLI (Industrial Select Sector SPDR Fund) is Industrials Equities fund tracking the Industrial Select Sector Index, while VZ (Verizon Communications Inc.) is a stock. Over the past 10 years, XLI returned 14.15%/yr vs 4.44%/yr for VZ. At a 0.41 correlation, their price movements are largely independent.
Performance
XLI vs. VZ - Performance Comparison
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Returns By Period
In the year-to-date period, XLI achieves a 13.90% return, which is significantly lower than VZ's 21.97% return. Over the past 10 years, XLI has outperformed VZ with an annualized return of 14.15%, while VZ has yielded a comparatively lower 4.44% 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%
VZ
- 1D
- 2.49%
- 1M
- 2.23%
- YTD
- 21.97%
- 6M
- 21.50%
- 1Y
- 19.39%
- 3Y*
- 18.39%
- 5Y*
- 2.74%
- 10Y*
- 4.44%
XLI vs. VZ - 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% |
VZ Verizon Communications Inc. | 21.97% | 8.86% | 13.14% | 2.71% | -20.02% | -7.55% | -0.13% | 13.83% | 11.26% | 3.97% |
Correlation
The correlation between XLI and VZ is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Jul 3, 2000 | 0.41 |
Over the past year, the correlation between XLI and VZ has dropped to 0.04 - well below their long-term average of 0.41, suggesting their price drivers have been diverging.
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Return for Risk
XLI vs. VZ — Risk / Return Rank
XLI
VZ
XLI vs. VZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and Verizon Communications Inc. (VZ). 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 | VZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.66 | ||
| Sortino ratioReturn per unit of downside risk | +0.68 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.18 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.98 | 1.43 | +0.55 |
| Martin ratioReturn relative to average drawdown | 7.82 | 3.06 | +4.76 |
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Drawdowns
XLI vs. VZ - Drawdown Comparison
The maximum XLI drawdown since its inception was -62.26%, which is greater than VZ's maximum drawdown of -50.66%. Use the drawdown chart below to compare losses from any high point for XLI and VZ.
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Drawdown Indicators
| XLI | VZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.26% | -50.66% | -11.60% |
Max Drawdown (1Y)Largest decline over 1 year | -12.21% | -13.32% | +1.11% |
Max Drawdown (3Y)Largest decline over 3 years | -18.49% | -14.93% | -3.56% |
Max Drawdown (5Y)Largest decline over 5 years | -21.64% | -38.38% | +16.74% |
Max Drawdown (10Y)Largest decline over 10 years | -42.33% | -41.21% | -1.12% |
Current DrawdownCurrent decline from peak | -1.24% | -4.96% | +3.72% |
Average DrawdownAverage peak-to-trough decline | -9.20% | -14.82% | +5.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.09% | 6.23% | -3.14% |
Volatility
XLI vs. VZ - Volatility Comparison
The current volatility for Industrial Select Sector SPDR Fund (XLI) is 6.22%, while Verizon Communications Inc. (VZ) has a volatility of 6.87%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than VZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLI | VZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.22% | 6.87% | -0.65% |
Volatility (6M)Calculated over the trailing 6-month period | 13.59% | 17.91% | -4.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.17% | 22.78% | -6.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.55% | 21.66% | -4.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.04% | 20.36% | -0.32% |
Dividends
XLI vs. VZ - Dividend Comparison
XLI's dividend yield for the trailing twelve months is around 1.16%, less than VZ's 5.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 5.75% | 6.68% | 6.68% | 6.96% | 6.53% | 4.85% | 4.21% | 3.95% | 4.22% | 4.39% | 4.26% | 4.79% |
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
XLI and VZ have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VZ has higher volatility (6.87%) compared to XLI (6.22%). In terms of maximum drawdown, XLI dropped -62.26% vs VZ's -50.66%.
XLI currently has the higher Sharpe Ratio (1.50 vs 0.84), 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.
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