XLY vs. O

Last updated Jun 14, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) is Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index, while O (Realty Income Corporation) is a stock. Over the past 10 years, XLY returned 12.78%/yr vs 4.89%/yr for O. At a 0.38 correlation, their price movements are largely independent.

Performance

XLY vs. O - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Consumer Discretionary Select Sector SPDR Fund (XLY) and Realty Income Corporation (O). 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 O's 13.70% return. Over the past 10 years, XLY has outperformed O with an annualized return of 12.78%, while O has yielded a comparatively lower 4.89% annualized return.

XLY

• 1D: 0.26%
• 1M: -1.74%
• YTD: -2.16%
• 6M: -3.01%
• 1Y: 11.01%
• 3Y*: 12.99%
• 5Y*: 7.00%
• 10Y*: 12.78%

O

• 1D: 1.31%
• 1M: 1.67%
• YTD: 13.70%
• 6M: 11.57%
• 1Y: 14.88%
• 3Y*: 6.59%
• 5Y*: 3.49%
• 10Y*: 4.89%

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

XLY vs. O - 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%	22.82%
O Realty Income Corporation	13.70%	12.20%	-2.11%	-4.55%	-7.38%	23.95%	-11.60%	21.27%	15.94%	3.67%

Correlation

The correlation between XLY and O is 0.06, 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	0.06
Correlation (3Y) Calculated over the trailing 3-year period	0.15
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.38

Over the past year, the correlation between XLY and O has dropped to 0.06 - well below their long-term average of 0.38, suggesting their price drivers have been diverging.

Return for Risk

XLY vs. O — 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

O

O Risk / Return Rank: 66
O Sharpe Ratio Rank: 71
O Sortino Ratio Rank: 62
O Omega Ratio Rank: 61
O Calmar Ratio Rank: 68
O Martin Ratio Rank: 69

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. O - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and Realty Income Corporation (O). 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	O	Difference
Sharpe ratio: Return per unit of total volatility	0.55	0.88	-0.33
Sortino ratio: Return per unit of downside risk	0.89	1.26	-0.37
Omega ratio: Gain probability vs. loss probability	1.10	1.15	-0.05
Calmar ratio: Return relative to maximum drawdown	0.67	1.29	-0.62
Martin ratio: Return relative to average drawdown	2.05	3.12	-1.06

XLY vs. O - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.55, which is lower than the O Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of XLY and O, 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. O - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, which is greater than O's maximum drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for XLY and O.

Drawdown Indicators

	XLY	O	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-48.45%	-10.60%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-11.10%	-3.88%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-26.49%	+0.48%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-34.48%	-5.19%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	-48.28%	+8.61%
Current Drawdown Current decline from peak	-6.17%	-5.94%	-0.23%
Average Drawdown Average peak-to-trough decline	-9.55%	-9.20%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.88%	4.58%	+0.30%

Volatility

XLY vs. O - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 6.19% compared to Realty Income Corporation (O) at 5.29%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than O based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLY	O	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	5.29%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	13.44%	11.98%	+1.46%
Volatility (1Y) Calculated over the trailing 1-year period	18.27%	16.21%	+2.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.83%	18.92%	+4.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.08%	25.64%	-3.56%

Dividends

XLY vs. O - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.77%, less than O's 5.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
O Realty Income Corporation	5.16%	6.19%	5.37%	5.33%	4.68%	3.87%	4.51%	3.69%	4.19%	4.45%	4.18%	4.41%
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 O in my portfolio?

XLY and O have a correlation of 0.06, 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 O?

XLY has higher volatility (6.19%) compared to O (5.29%). In terms of maximum drawdown, XLY dropped -59.05% vs O's -48.45%.

Which has better risk-adjusted returns?

O currently has the higher Sharpe Ratio (0.88 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.