XLP vs. GOVT
XLP (State Street Consumer Staples Select Sector SPDR ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, XLP returned 7.21%/yr vs 0.79%/yr for GOVT. At a correlation of -0.01, they often move in opposite directions. XLP charges 0.08%/yr vs 0.05%/yr for GOVT.
Performance
XLP vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, XLP achieves a 7.54% return, which is significantly higher than GOVT's -0.44% return. Over the past 10 years, XLP has outperformed GOVT with an annualized return of 7.21%, while GOVT has yielded a comparatively lower 0.79% annualized return.
XLP
- 1D
- -0.44%
- 1M
- -1.32%
- YTD
- 7.54%
- 6M
- 8.22%
- 1Y
- 4.50%
- 3Y*
- 7.23%
- 5Y*
- 6.10%
- 10Y*
- 7.21%
GOVT
- 1D
- -0.11%
- 1M
- -0.70%
- YTD
- -0.44%
- 6M
- -0.15%
- 1Y
- 3.62%
- 3Y*
- 2.77%
- 5Y*
- -0.59%
- 10Y*
- 0.79%
XLP vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLP State Street Consumer Staples Select Sector SPDR ETF | 7.54% | 1.52% | 12.20% | -0.82% | -0.81% | 17.20% | 10.11% | 27.43% | -8.07% | 12.98% |
GOVT iShares U.S. Treasury Bond ETF | -0.44% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between XLP and GOVT is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | -0.01 |
The correlation between XLP and GOVT shifts across timeframes, from -0.01 (all time) to 0.21 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLP vs. GOVT — Risk / Return Rank
XLP
GOVT
XLP vs. GOVT - 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 iShares U.S. Treasury Bond ETF (GOVT). 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 | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.67 | ||
| Sortino ratioReturn per unit of downside risk | -0.94 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.17 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 0.47 | 1.27 | -0.81 |
| Martin ratioReturn relative to average drawdown | 0.91 | 3.66 | -2.75 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XLP | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 1.02 | -0.67 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.46 | -0.10 | +0.56 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.49 | 0.15 | +0.34 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.44 | 0.25 | +0.18 |
Drawdowns
XLP vs. GOVT - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.90%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for XLP and GOVT.
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Drawdown Indicators
| XLP | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.90% | -19.07% | -16.83% |
Max Drawdown (1Y)Largest decline over 1 year | -9.69% | -2.85% | -6.84% |
Max Drawdown (3Y)Largest decline over 3 years | -12.39% | -5.43% | -6.96% |
Max Drawdown (5Y)Largest decline over 5 years | -16.30% | -16.60% | +0.30% |
Max Drawdown (10Y)Largest decline over 10 years | -24.51% | -19.07% | -5.44% |
Current DrawdownCurrent decline from peak | -7.19% | -7.48% | +0.29% |
Average DrawdownAverage peak-to-trough decline | -7.06% | -5.25% | -1.81% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.97% | 0.99% | +3.98% |
Volatility
XLP vs. GOVT - Volatility Comparison
State Street Consumer Staples Select Sector SPDR ETF (XLP) has a higher volatility of 4.30% compared to iShares U.S. Treasury Bond ETF (GOVT) at 1.05%. This indicates that XLP's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLP | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.30% | 1.05% | +3.25% |
Volatility (6M)Calculated over the trailing 6-month period | 9.97% | 2.53% | +7.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.75% | 3.56% | +9.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.31% | 6.04% | +7.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.74% | 5.23% | +9.51% |
XLP vs. GOVT - Expense Ratio Comparison
XLP has a 0.08% expense ratio, which is higher than GOVT's 0.05% 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
XLP vs. GOVT - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.62%, less than GOVT's 3.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.60% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 2.62% | 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
XLP and GOVT have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLP has higher volatility (4.30%) compared to GOVT (1.05%). In terms of maximum drawdown, XLP dropped -35.90% vs GOVT's -19.07%.
On 10-year performance, XLP leads with 7.21% vs 0.79% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLP has performed better with a 7.21% return vs 0.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.08% for XLP.
GOVT has the higher dividend yield at 3.60%, compared with 2.62% for XLP.
XLP is categorized as Consumer Staples Equities, while GOVT is Government Bonds. XLP tracks Consumer Staples Select Sector Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLP and 0.05% for GOVT.
GOVT currently has the higher Sharpe Ratio (1.02 vs 0.36), 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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