XLP vs. FXG

Last updated Jun 5, 2026

XLP (State Street Consumer Staples Select Sector SPDR ETF) and FXG (First Trust Consumer Staples AlphaDEX Fund) are both Consumer Staples Equities funds - XLP tracks the Consumer Staples Select Sector Index while FXG tracks the StrataQuant Consumer Staples Index. Both are passively managed. Over the past 10 years, XLP returned 7.17%/yr vs 4.33%/yr for FXG. A 0.77 correlation means they provide meaningful diversification when combined. XLP charges 0.08%/yr vs 0.63%/yr for FXG.

Performance

XLP vs. FXG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Consumer Staples Select Sector SPDR ETF (XLP) and First Trust Consumer Staples AlphaDEX Fund (FXG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLP achieves a 6.21% return, which is significantly higher than FXG's 0.49% return. Over the past 10 years, XLP has outperformed FXG with an annualized return of 7.17%, while FXG has yielded a comparatively lower 4.33% annualized return.

XLP

• 1D: -0.15%
• 1M: -2.40%
• YTD: 6.21%
• 6M: 6.01%
• 1Y: 2.54%
• 3Y*: 6.67%
• 5Y*: 5.52%
• 10Y*: 7.17%

FXG

• 1D: 0.67%
• 1M: -4.29%
• YTD: 0.49%
• 6M: -0.50%
• 1Y: -1.06%
• 3Y*: 1.23%
• 5Y*: 2.01%
• 10Y*: 4.33%

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

XLP vs. FXG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLP State Street Consumer Staples Select Sector SPDR ETF	6.21%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%
FXG First Trust Consumer Staples AlphaDEX Fund	0.49%	-2.66%	3.21%	1.97%	3.28%	21.73%	4.85%	20.65%	-11.49%	7.87%

Correlation

The correlation between XLP and FXG is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.77

The correlation between XLP and FXG has been stable across timeframes, ranging from 0.77 to 0.81 - a consistent structural relationship.

XLP vs. FXG - Sectors Allocation Comparison

Sectors	XLP	FXG
Consumer Defensive	99.0%	79.9%
Consumer Cyclical	1.0%	7.9%
Basic Materials	-	2.0%
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	8.2%
Industrials	-	4.1%
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLP vs. FXG — Risk / Return Rank

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

XLP

XLP Risk / Return Rank: 12
XLP Sharpe Ratio Rank: 12
XLP Sortino Ratio Rank: 12
XLP Omega Ratio Rank: 11
XLP Calmar Ratio Rank: 12
XLP Martin Ratio Rank: 12

FXG

FXG Risk / Return Rank: 8
FXG Sharpe Ratio Rank: 8
FXG Sortino Ratio Rank: 8
FXG Omega Ratio Rank: 8
FXG Calmar Ratio Rank: 8
FXG Martin Ratio Rank: 8

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.

XLP vs. FXG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Consumer Staples Select Sector SPDR ETF (XLP) and First Trust Consumer Staples AlphaDEX Fund (FXG). 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.

	XLP	FXG	Difference
Sharpe ratio: Return per unit of total volatility	0.20	-0.08	+0.29
Sortino ratio: Return per unit of downside risk	0.38	-0.03	+0.41
Omega ratio: Gain probability vs. loss probability	1.04	1.00	+0.05
Calmar ratio: Return relative to maximum drawdown	0.26	-0.08	+0.35
Martin ratio: Return relative to average drawdown	0.52	-0.19	+0.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLP vs. FXG - Sharpe Ratio Comparison

The current XLP Sharpe Ratio is 0.20, which is higher than the FXG Sharpe Ratio of -0.08. The chart below compares the historical Sharpe Ratios of XLP and FXG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLP	FXG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.20	-0.08	+0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.15	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.29	+0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.48	-0.04

Drawdowns

XLP vs. FXG - Drawdown Comparison

The maximum XLP drawdown since its inception was -35.90%, smaller than the maximum FXG drawdown of -38.69%. Use the drawdown chart below to compare losses from any high point for XLP and FXG.

Drawdown Indicators

	XLP	FXG	Difference
Max Drawdown Largest peak-to-trough decline	-35.90%	-38.69%	+2.79%
Max Drawdown (1Y) Largest decline over 1 year	-9.69%	-12.75%	+3.06%
Max Drawdown (3Y) Largest decline over 3 years	-12.39%	-12.75%	+0.36%
Max Drawdown (5Y) Largest decline over 5 years	-16.30%	-15.70%	-0.60%
Max Drawdown (10Y) Largest decline over 10 years	-24.51%	-27.54%	+3.03%
Current Drawdown Current decline from peak	-8.34%	-12.11%	+3.77%
Average Drawdown Average peak-to-trough decline	-7.06%	-6.03%	-1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.94%	5.46%	-0.52%

Volatility

XLP vs. FXG - Volatility Comparison

State Street Consumer Staples Select Sector SPDR ETF (XLP) has a higher volatility of 3.90% compared to First Trust Consumer Staples AlphaDEX Fund (FXG) at 3.32%. This indicates that XLP's price experiences larger fluctuations and is considered to be riskier than FXG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLP	FXG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	3.32%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	9.84%	9.06%	+0.78%
Volatility (1Y) Calculated over the trailing 1-year period	12.66%	12.72%	-0.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.29%	13.48%	-0.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.73%	14.92%	-0.19%

XLP vs. FXG - Expense Ratio Comparison

XLP has a 0.08% expense ratio, which is lower than FXG's 0.63% expense ratio.

Dividends

XLP vs. FXG - Dividend Comparison

XLP's dividend yield for the trailing twelve months is around 2.65%, less than FXG's 2.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXG First Trust Consumer Staples AlphaDEX Fund	2.88%	2.83%	1.70%	1.41%	1.83%	1.38%	1.41%	1.63%	2.31%	1.34%	1.72%	1.67%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.65%	2.75%	2.77%	2.63%	2.47%	2.28%	2.50%	2.57%	3.04%	2.62%	2.53%	2.52%

Frequently Asked Questions

Can I hold both XLP and FXG in my portfolio?

XLP and FXG have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLP or FXG?

XLP has higher volatility (3.90%) compared to FXG (3.32%). In terms of maximum drawdown, XLP dropped -35.90% vs FXG's -38.69%.

Which ETF is better, XLP or FXG?

On 10-year performance, XLP leads with 7.17% vs 4.33% for FXG. On fees, XLP is cheaper at 0.08% per year. On volatility, FXG has been the lower-risk option at 3.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLP or FXG?

Over the 10-year period, XLP has performed better with a 7.17% return vs 4.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLP or FXG?

XLP is cheaper with a 0.08% expense ratio, compared with 0.63% for FXG.

Which ETF pays a higher dividend yield, XLP or FXG?

FXG has the higher dividend yield at 2.88%, compared with 2.65% for XLP.

What is the main difference between XLP and FXG?

XLP tracks Consumer Staples Select Sector Index, while FXG tracks StrataQuant Consumer Staples Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.08% for XLP and 0.63% for FXG.

Which has better risk-adjusted returns?

XLP currently has the higher Sharpe Ratio (0.20 vs -0.08), 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.