XLY vs. IYC

Last updated Jun 5, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) and IYC (iShares U.S. Consumer Discretionary ETF) are both Consumer Discretionary Equities funds - XLY tracks the Consumer Discretionary Select Sector Index while IYC tracks the Dow Jones U.S. Consumer Services Index. Both are passively managed. Over the past 10 years, XLY returned 12.63%/yr vs 11.52%/yr for IYC. Their correlation of 0.94 suggests significant overlap in exposure. XLY charges 0.13%/yr vs 0.38%/yr for IYC.

Performance

XLY vs. IYC - Performance Comparison

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

Returns By Period

In the year-to-date period, XLY achieves a -1.60% return, which is significantly higher than IYC's -2.36% return. Over the past 10 years, XLY has outperformed IYC with an annualized return of 12.63%, while IYC has yielded a comparatively lower 11.52% annualized return.

XLY

• 1D: 0.45%
• 1M: -0.69%
• YTD: -1.60%
• 6M: -1.13%
• 1Y: 10.01%
• 3Y*: 15.13%
• 5Y*: 7.39%
• 10Y*: 12.63%

IYC

• 1D: 0.37%
• 1M: -1.12%
• YTD: -2.36%
• 6M: -2.22%
• 1Y: 3.81%
• 3Y*: 15.48%
• 5Y*: 6.37%
• 10Y*: 11.52%

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

XLY vs. IYC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLY Consumer Discretionary Select Sector SPDR Fund	-1.60%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%
IYC iShares U.S. Consumer Discretionary ETF	-2.36%	7.85%	27.54%	34.03%	-31.78%	19.65%	24.58%	27.36%	1.76%	19.87%

Correlation

The correlation between XLY and IYC is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jun 29, 2000	0.94

The correlation between XLY and IYC has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

XLY vs. IYC - Sectors Allocation Comparison

Sectors	XLY	IYC
Consumer Cyclical	97.5%	67.8%
Communication Services	1.4%	13.7%
Technology	0.9%	3.6%
Industrials	0.1%	3.5%
Basic Materials	-	-
Consumer Defensive	-	11.2%
Energy	-	0.1%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLY vs. IYC — Risk / Return Rank

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

XLY

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

IYC

IYC Risk / Return Rank: 13
IYC Sharpe Ratio Rank: 13
IYC Sortino Ratio Rank: 13
IYC Omega Ratio Rank: 12
IYC Calmar Ratio Rank: 13
IYC Martin Ratio Rank: 14

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. IYC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and iShares U.S. Consumer Discretionary ETF (IYC). 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.

	XLY	IYC	Difference
Sharpe ratio: Return per unit of total volatility	0.55	0.27	+0.29
Sortino ratio: Return per unit of downside risk	0.89	0.48	+0.41
Omega ratio: Gain probability vs. loss probability	1.10	1.05	+0.05
Calmar ratio: Return relative to maximum drawdown	0.67	0.32	+0.35
Martin ratio: Return relative to average drawdown	2.11	0.96	+1.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLY vs. IYC - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.55, which is higher than the IYC Sharpe Ratio of 0.27. The chart below compares the historical Sharpe Ratios of XLY and IYC, 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

	XLY	IYC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.55	0.27	+0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	0.31	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.58	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.42	+0.01

Drawdowns

XLY vs. IYC - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, which is greater than IYC's maximum drawdown of -53.10%. Use the drawdown chart below to compare losses from any high point for XLY and IYC.

Drawdown Indicators

	XLY	IYC	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-53.10%	-5.95%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-11.97%	-3.01%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-21.62%	-4.39%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-35.90%	-3.77%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	-35.90%	-3.77%
Current Drawdown Current decline from peak	-5.64%	-6.05%	+0.41%
Average Drawdown Average peak-to-trough decline	-9.56%	-9.95%	+0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.76%	3.97%	+0.79%

Volatility

XLY vs. IYC - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 5.17% compared to iShares U.S. Consumer Discretionary ETF (IYC) at 3.99%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than IYC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLY	IYC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	3.99%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	13.10%	10.51%	+2.59%
Volatility (1Y) Calculated over the trailing 1-year period	18.16%	14.32%	+3.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.78%	20.72%	+3.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.05%	19.89%	+2.16%

XLY vs. IYC - Expense Ratio Comparison

XLY has a 0.13% expense ratio, which is lower than IYC's 0.38% expense ratio.

Dividends

XLY vs. IYC - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.76%, more than IYC's 0.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYC iShares U.S. Consumer Discretionary ETF	0.51%	0.51%	0.47%	0.68%	0.68%	0.39%	0.65%	0.89%	0.90%	0.92%	1.10%	1.03%
XLY Consumer Discretionary Select Sector SPDR Fund	0.76%	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 IYC in my portfolio?

With a correlation of 0.94, XLY and IYC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLY or IYC?

XLY has higher volatility (5.17%) compared to IYC (3.99%). In terms of maximum drawdown, XLY dropped -59.05% vs IYC's -53.10%.

Which ETF is better, XLY or IYC?

On 10-year performance, XLY leads with 12.63% vs 11.52% for IYC. On fees, XLY is cheaper at 0.13% per year. On volatility, IYC has been the lower-risk option at 3.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLY or IYC?

Over the 10-year period, XLY has performed better with a 12.63% return vs 11.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLY or IYC?

XLY is cheaper with a 0.13% expense ratio, compared with 0.38% for IYC.

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

XLY has the higher dividend yield at 0.76%, compared with 0.51% for IYC.

What is the main difference between XLY and IYC?

XLY tracks Consumer Discretionary Select Sector Index, while IYC tracks Dow Jones U.S. Consumer Services Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLY and 0.38% for IYC.

Which has better risk-adjusted returns?

XLY currently has the higher Sharpe Ratio (0.55 vs 0.27), 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.