XLP vs. XLI

Last updated Jul 21, 2026

XLP (State Street Consumer Staples Select Sector SPDR ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, XLP returned 7.18%/yr vs 13.76%/yr for XLI. A 0.55 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

XLP vs. XLI - 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 Industrial Select Sector SPDR Fund (XLI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLP achieves a 10.62% return, which is significantly lower than XLI's 15.43% return. Over the past 10 years, XLP has underperformed XLI with an annualized return of 7.18%, while XLI has yielded a comparatively higher 13.76% annualized return.

XLP

• 1D: -0.39%
• 1M: 2.58%
• 6M: 4.65%
• YTD: 10.62%
• 1Y: 7.82%
• 3Y*: 6.78%
• 5Y*: 6.50%
• 10Y*: 7.18%
• ALL TIME*: 6.87%

XLI

• 1D: -0.72%
• 1M: -1.30%
• 6M: 7.29%
• YTD: 15.43%
• 1Y: 19.12%
• 3Y*: 19.29%
• 5Y*: 13.15%
• 10Y*: 13.76%
• ALL TIME*: 9.61%

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

XLP vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLP State Street Consumer Staples Select Sector SPDR ETF	10.62%	1.52%	12.20%	-0.82%	-0.81%	17.20%	10.11%	27.43%	-8.07%	12.98%
XLI Industrial Select Sector SPDR Fund	15.43%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between XLP and XLI is 0.08, 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	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.55

Over the past year, the correlation between XLP and XLI has dropped to 0.08 - well below their long-term average of 0.55, suggesting their price drivers have been diverging.

XLP vs. XLI - Sectors Allocation Comparison

Sectors	XLP	XLI
Consumer Defensive	98.1%	-
Consumer Cyclical	1.9%	0.2%
Basic Materials	-	0.1%
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	93.3%
Real Estate	-	-
Technology	-	6.3%
Utilities	-	5.3%

Return for Risk

XLP vs. XLI — Risk / Return Rank

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

XLP

XLP Risk / Return Rank: 21
XLP Sharpe Ratio Rank: 22
XLP Sortino Ratio Rank: 22
XLP Omega Ratio Rank: 20
XLP Calmar Ratio Rank: 23
XLP Martin Ratio Rank: 20

XLI

XLI Risk / Return Rank: 43
XLI Sharpe Ratio Rank: 43
XLI Sortino Ratio Rank: 43
XLI Omega Ratio Rank: 39
XLI Calmar Ratio Rank: 40
XLI Martin Ratio Rank: 49

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. XLI - 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 Industrial Select Sector SPDR Fund (XLI). 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.

	XLP	XLI	Difference
Sharpe ratio: Return per unit of total volatility	0.57	1.15	-0.58
Sortino ratio: Return per unit of downside risk	0.92	1.71	-0.79
Omega ratio: Gain probability vs. loss probability	1.10	1.20	-0.10
Calmar ratio: Return relative to maximum drawdown	0.81	1.57	-0.76
Martin ratio: Return relative to average drawdown	1.49	6.09	-4.60

XLP vs. XLI - Sharpe Ratio Comparison

The current XLP Sharpe Ratio is 0.57, which is lower than the XLI Sharpe Ratio of 1.15. The chart below compares the historical Sharpe Ratios of XLP and XLI, 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

XLP vs. XLI - Drawdown Comparison

The maximum XLP drawdown since its inception was -35.90%, smaller than the maximum XLI drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for XLP and XLI.

Drawdown Indicators

	XLP	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-35.90%	-62.26%	+26.36%
Max Drawdown (1Y) Largest decline over 1 year	-9.69%	-12.21%	+2.52%
Max Drawdown (3Y) Largest decline over 3 years	-12.39%	-18.49%	+6.10%
Max Drawdown (5Y) Largest decline over 5 years	-16.30%	-21.64%	+5.34%
Max Drawdown (10Y) Largest decline over 10 years	-24.51%	-42.33%	+17.82%
Current Drawdown Current decline from peak	-4.53%	-4.01%	-0.52%
Average Drawdown Average peak-to-trough decline	-7.05%	-9.17%	+2.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.26%	3.15%	+2.11%

Volatility

XLP vs. XLI - Volatility Comparison

State Street Consumer Staples Select Sector SPDR ETF (XLP) has a higher volatility of 5.47% compared to Industrial Select Sector SPDR Fund (XLI) at 5.03%. This indicates that XLP's price experiences larger fluctuations and is considered to be riskier than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLP	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.47%	5.03%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	11.02%	13.80%	-2.78%
Volatility (1Y) Calculated over the trailing 1-year period	13.75%	16.68%	-2.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.52%	17.53%	-4.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.83%	20.01%	-5.18%

XLP vs. XLI - Expense Ratio Comparison

Both XLP and XLI have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XLP vs. XLI - Dividend Comparison

XLP's dividend yield for the trailing twelve months is around 2.59%, more than XLI's 1.16% 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%
XLP State Street Consumer Staples Select Sector SPDR ETF	2.59%	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 XLI in my portfolio?

XLP and XLI have a correlation of 0.08, 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 XLI?

XLP has higher volatility (5.47%) compared to XLI (5.03%). In terms of maximum drawdown, XLP dropped -35.90% vs XLI's -62.26%.

Which ETF is better, XLP or XLI?

On 10-year performance, XLI leads with 13.76% vs 7.18% for XLP. Both ETFs have the same 0.08% expense ratio. On volatility, XLI has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLP or XLI?

Over the 10-year period, XLI has performed better with a 13.76% return vs 7.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLP or XLI?

XLP and XLI have the same expense ratio: 0.08% per year.

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

XLP has the higher dividend yield at 2.59%, compared with 1.16% for XLI.

What is the main difference between XLP and XLI?

XLP is categorized as Consumer Staples Equities, while XLI is Industrials Equities. XLP tracks Consumer Staples Select Sector Index, while XLI tracks Industrial Select Sector Index.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.15 vs 0.57), 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.