XLY vs. EMXC

Last updated Jun 13, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) and EMXC (iShares MSCI Emerging Markets ex China ETF) are both exchange-traded funds - XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index, while EMXC is a Emerging Markets Equities fund tracking the MSCI Emerging Markets ex China Index. Both are passively managed. Over the past 5 years, XLY returned 7.00%/yr vs 12.14%/yr for EMXC. A 0.59 correlation means they provide meaningful diversification when combined. XLY charges 0.13%/yr vs 0.49%/yr for EMXC.

Performance

XLY vs. EMXC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Consumer Discretionary Select Sector SPDR Fund (XLY) and iShares MSCI Emerging Markets ex China ETF (EMXC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLY achieves a -2.16% return, which is significantly lower than EMXC's 37.25% return.

XLY

• 1D: 0.26%
• 1M: -1.79%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 9.98%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

EMXC

• 1D: 0.55%
• 1M: 3.75%
• YTD: 37.25%
• 6M: 42.23%
• 1Y: 65.26%
• 3Y*: 26.47%
• 5Y*: 12.14%
• 10Y*: —

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

XLY vs. EMXC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLY Consumer Discretionary Select Sector SPDR Fund	-2.16%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	8.66%
EMXC iShares MSCI Emerging Markets ex China ETF	37.25%	35.14%	2.68%	18.96%	-19.56%	8.54%	12.76%	15.80%	-12.96%	7.16%

Correlation

The correlation between XLY and EMXC is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (All Time) Calculated using the full available price history since Jul 26, 2017	0.59

The correlation between XLY and EMXC has been stable across timeframes, ranging from 0.55 to 0.60 - a consistent structural relationship.

XLY vs. EMXC - Sectors Allocation Comparison

Sectors	XLY	EMXC
Consumer Cyclical	97.6%	4.5%
Communication Services	1.3%	3.4%
Technology	0.9%	45.0%
Industrials	0.1%	8.3%
Basic Materials	-	6.8%
Consumer Defensive	-	2.9%
Energy	-	4.2%
Financial Services	-	19.6%
Healthcare	-	2.2%
Real Estate	-	1.0%
Utilities	-	2.3%

Return for Risk

XLY vs. EMXC — Risk / Return Rank

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

XLY

XLY Risk / Return Rank: 19
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 19
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 19
XLY Martin Ratio Rank: 20

EMXC

EMXC Risk / Return Rank: 89
EMXC Sharpe Ratio Rank: 91
EMXC Sortino Ratio Rank: 86
EMXC Omega Ratio Rank: 90
EMXC Calmar Ratio Rank: 88
EMXC Martin Ratio Rank: 89

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.

XLY vs. EMXC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and iShares MSCI Emerging Markets ex China ETF (EMXC). 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.

	XLY	EMXC	Difference
Sharpe ratio: Return per unit of total volatility	0.55	2.74	-2.20
Sortino ratio: Return per unit of downside risk	0.89	3.35	-2.46
Omega ratio: Gain probability vs. loss probability	1.10	1.50	-0.40
Calmar ratio: Return relative to maximum drawdown	0.67	4.55	-3.88
Martin ratio: Return relative to average drawdown	2.05	17.51	-15.46

XLY vs. EMXC - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.55, which is lower than the EMXC Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of XLY and EMXC, 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

XLY vs. EMXC - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, which is greater than EMXC's maximum drawdown of -42.81%. Use the drawdown chart below to compare losses from any high point for XLY and EMXC.

Drawdown Indicators

	XLY	EMXC	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-42.81%	-16.24%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-14.41%	-0.57%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-19.12%	-6.89%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-28.91%	-10.76%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	—	—
Current Drawdown Current decline from peak	-6.17%	-4.12%	-2.05%
Average Drawdown Average peak-to-trough decline	-9.55%	-10.17%	+0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.88%	3.74%	+1.14%

Volatility

XLY vs. EMXC - Volatility Comparison

The current volatility for Consumer Discretionary Select Sector SPDR Fund (XLY) is 6.19%, while iShares MSCI Emerging Markets ex China ETF (EMXC) has a volatility of 12.83%. This indicates that XLY experiences smaller price fluctuations and is considered to be less risky than EMXC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLY	EMXC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	12.83%	-6.64%
Volatility (6M) Calculated over the trailing 6-month period	13.44%	21.90%	-8.46%
Volatility (1Y) Calculated over the trailing 1-year period	18.27%	23.90%	-5.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.83%	18.00%	+5.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.08%	20.07%	+2.01%

XLY vs. EMXC - Expense Ratio Comparison

XLY has a 0.13% expense ratio, which is lower than EMXC's 0.49% expense ratio.

Dividends

XLY vs. EMXC - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.77%, less than EMXC's 2.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EMXC iShares MSCI Emerging Markets ex China ETF	2.05%	2.82%	2.69%	1.83%	2.85%	1.78%	1.45%	3.25%	2.63%	0.99%	0.00%	0.00%
XLY Consumer Discretionary Select Sector SPDR Fund	0.77%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%

Frequently Asked Questions

Can I hold both XLY and EMXC in my portfolio?

XLY and EMXC have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLY or EMXC?

EMXC has higher volatility (12.83%) compared to XLY (6.19%). In terms of maximum drawdown, XLY dropped -59.05% vs EMXC's -42.81%.

Which ETF is better, XLY or EMXC?

On 5-year performance, EMXC leads with 12.14% vs 7.00% for XLY. On fees, XLY is cheaper at 0.13% per year. On volatility, XLY has been the lower-risk option at 6.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLY or EMXC?

Over the 5-year period, EMXC has performed better with a 12.14% return vs 7.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLY or EMXC?

XLY is cheaper with a 0.13% expense ratio, compared with 0.49% for EMXC.

Which ETF pays a higher dividend yield, XLY or EMXC?

EMXC has the higher dividend yield at 2.05%, compared with 0.77% for XLY.

What is the main difference between XLY and EMXC?

XLY is categorized as Consumer Discretionary Equities, while EMXC is Emerging Markets Equities. XLY tracks Consumer Discretionary Select Sector Index, while EMXC tracks MSCI Emerging Markets ex China Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLY and 0.49% for EMXC.

Which has better risk-adjusted returns?

EMXC currently has the higher Sharpe Ratio (2.74 vs 0.55), 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.