XLI vs. XME

Last updated Jun 14, 2026

XLI (Industrial Select Sector SPDR Fund) and XME (SPDR S&P Metals & Mining ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while XME is a Materials fund tracking the S&P Metals & Mining Select Industry Index. Both are passively managed. Over the past 10 years, XLI returned 14.15%/yr vs 19.60%/yr for XME. A 0.64 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.35%/yr for XME.

Performance

XLI vs. XME - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) and SPDR S&P Metals & Mining ETF (XME). 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 XME's 16.32% return. Over the past 10 years, XLI has underperformed XME with an annualized return of 14.15%, while XME has yielded a comparatively higher 19.60% 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%

XME

• 1D: 1.77%
• 1M: -0.44%
• YTD: 16.32%
• 6M: 18.13%
• 1Y: 85.07%
• 3Y*: 35.23%
• 5Y*: 21.78%
• 10Y*: 19.60%

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

XLI vs. XME - 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%
XME SPDR S&P Metals & Mining ETF	16.32%	83.47%	-4.54%	21.51%	13.13%	34.92%	15.95%	14.69%	-26.78%	21.17%

Correlation

The correlation between XLI and XME is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.64

The correlation between XLI and XME has been stable across timeframes, ranging from 0.56 to 0.64 - a consistent structural relationship.

XLI vs. XME - Sectors Allocation Comparison

Sectors	XLI	XME
Industrials	90.9%	0.4%
Utilities	4.8%	-
Technology	3.8%	2.2%
Consumer Cyclical	0.5%	-
Basic Materials	-	74.9%
Communication Services	-	-
Consumer Defensive	-	0.8%
Energy	-	23.8%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-

Return for Risk

XLI vs. XME — 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

XME

XME Risk / Return Rank: 75
XME Sharpe Ratio Rank: 86
XME Sortino Ratio Rank: 74
XME Omega Ratio Rank: 73
XME Calmar Ratio Rank: 82
XME Martin Ratio Rank: 61

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. XME - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) and SPDR S&P Metals & Mining ETF (XME). 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	XME	Difference
Sharpe ratio: Return per unit of total volatility	1.50	2.41	-0.91
Sortino ratio: Return per unit of downside risk	2.17	2.86	-0.69
Omega ratio: Gain probability vs. loss probability	1.26	1.37	-0.11
Calmar ratio: Return relative to maximum drawdown	1.98	3.84	-1.86
Martin ratio: Return relative to average drawdown	7.82	9.58	-1.76

XLI vs. XME - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is lower than the XME Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of XLI and XME, 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. XME - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, smaller than the maximum XME drawdown of -85.89%. Use the drawdown chart below to compare losses from any high point for XLI and XME.

Drawdown Indicators

	XLI	XME	Difference
Max Drawdown Largest peak-to-trough decline	-62.26%	-85.89%	+23.63%
Max Drawdown (1Y) Largest decline over 1 year	-12.21%	-22.60%	+10.39%
Max Drawdown (3Y) Largest decline over 3 years	-18.49%	-30.47%	+11.98%
Max Drawdown (5Y) Largest decline over 5 years	-21.64%	-37.27%	+15.63%
Max Drawdown (10Y) Largest decline over 10 years	-42.33%	-61.69%	+19.36%
Current Drawdown Current decline from peak	-1.24%	-9.33%	+8.09%
Average Drawdown Average peak-to-trough decline	-9.20%	-44.09%	+34.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	9.05%	-5.96%

Volatility

XLI vs. XME - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 6.22%, while SPDR S&P Metals & Mining ETF (XME) has a volatility of 15.26%. This indicates that XLI experiences smaller price fluctuations and is considered to be less risky than XME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLI	XME	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.22%	15.26%	-9.04%
Volatility (6M) Calculated over the trailing 6-month period	13.59%	28.51%	-14.92%
Volatility (1Y) Calculated over the trailing 1-year period	16.17%	36.11%	-19.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.55%	32.84%	-15.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.04%	32.96%	-12.92%

XLI vs. XME - Expense Ratio Comparison

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

Dividends

XLI vs. XME - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, more than XME's 0.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XME SPDR S&P Metals & Mining ETF	0.32%	0.38%	0.65%	1.00%	1.64%	0.70%	0.99%	2.43%	2.23%	1.15%	1.02%	2.61%

Frequently Asked Questions

Can I hold both XLI and XME in my portfolio?

XLI and XME have a correlation of 0.56, 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 XME?

XME has higher volatility (15.26%) compared to XLI (6.22%). In terms of maximum drawdown, XLI dropped -62.26% vs XME's -85.89%.

Which ETF is better, XLI or XME?

On 10-year performance, XME leads with 19.60% 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 XME?

Over the 10-year period, XME has performed better with a 19.60% 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 XME?

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

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

XLI has the higher dividend yield at 1.16%, compared with 0.32% for XME.

What is the main difference between XLI and XME?

XLI is categorized as Industrials Equities, while XME is Materials. XLI tracks Industrial Select Sector Index, while XME tracks S&P Metals & Mining Select Industry Index. Their fees differ too: 0.08% for XLI and 0.35% for XME.

Which has better risk-adjusted returns?

XME currently has the higher Sharpe Ratio (2.41 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.