XLY vs. SGOV
XLY (Consumer Discretionary Select Sector SPDR Fund) and SGOV (iShares 0-3 Month Treasury Bond ETF) are both exchange-traded funds - XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index, while SGOV is a Ultrashort Bond fund tracking the ICE 0-3 Month US Treasury Securities Index. Both are passively managed. Over the past 5 years, XLY returned 6.99%/yr vs 3.55%/yr for SGOV. At a correlation of -0.02, they often move in opposite directions. XLY charges 0.13%/yr vs 0.09%/yr for SGOV.
Performance
XLY vs. SGOV - Performance Comparison
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Returns By Period
In the year-to-date period, XLY achieves a -3.17% return, which is significantly lower than SGOV's 1.56% return.
XLY
- 1D
- 0.46%
- 1M
- -4.00%
- YTD
- -3.17%
- 6M
- -1.81%
- 1Y
- 9.63%
- 3Y*
- 13.63%
- 5Y*
- 6.99%
- 10Y*
- 12.57%
SGOV
- 1D
- 0.01%
- 1M
- 0.28%
- YTD
- 1.56%
- 6M
- 1.80%
- 1Y
- 3.95%
- 3Y*
- 4.70%
- 5Y*
- 3.55%
- 10Y*
- —
XLY vs. SGOV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
XLY Consumer Discretionary Select Sector SPDR Fund | -3.17% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.17% |
SGOV iShares 0-3 Month Treasury Bond ETF | 1.56% | 4.24% | 5.27% | 5.12% | 1.58% | 0.04% | 0.04% |
Correlation
The correlation between XLY and SGOV is -0.07, 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 | -0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since May 28, 2020 | -0.02 |
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Return for Risk
XLY vs. SGOV — Risk / Return Rank
XLY
SGOV
XLY vs. SGOV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and iShares 0-3 Month Treasury Bond ETF (SGOV). 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 | SGOV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -19.74 | ||
| Sortino ratioReturn per unit of downside risk | -274.82 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 195.55 | -194.45 |
| Calmar ratioReturn relative to maximum drawdown | 0.65 | 398.20 | -397.55 |
| Martin ratioReturn relative to average drawdown | 2.01 | 4,461.99 | -4,459.98 |
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
| XLY | SGOV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.54 | 20.28 | -19.74 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.30 | 14.78 | -14.48 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.57 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.42 | 12.50 | -12.08 |
Drawdowns
XLY vs. SGOV - Drawdown Comparison
The maximum XLY drawdown since its inception was -59.05%, which is greater than SGOV's maximum drawdown of -0.03%. Use the drawdown chart below to compare losses from any high point for XLY and SGOV.
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Drawdown Indicators
| XLY | SGOV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -0.03% | -59.02% |
Max Drawdown (1Y)Largest decline over 1 year | -14.98% | -0.01% | -14.97% |
Max Drawdown (3Y)Largest decline over 3 years | -26.01% | -0.01% | -26.00% |
Max Drawdown (5Y)Largest decline over 5 years | -39.67% | -0.03% | -39.64% |
Max Drawdown (10Y)Largest decline over 10 years | -39.67% | — | — |
Current DrawdownCurrent decline from peak | -7.15% | 0.00% | -7.15% |
Average DrawdownAverage peak-to-trough decline | -9.56% | -0.00% | -9.56% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.80% | 0.00% | +4.80% |
Volatility
XLY vs. SGOV - Volatility Comparison
Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 5.32% compared to iShares 0-3 Month Treasury Bond ETF (SGOV) at 0.06%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than SGOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLY | SGOV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.32% | 0.06% | +5.26% |
Volatility (6M)Calculated over the trailing 6-month period | 13.22% | 0.13% | +13.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.09% | 0.20% | +17.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.80% | 0.24% | +23.56% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.06% | 0.24% | +21.82% |
XLY vs. SGOV - Expense Ratio Comparison
XLY has a 0.13% expense ratio, which is higher than SGOV's 0.09% 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
XLY vs. SGOV - Dividend Comparison
XLY's dividend yield for the trailing twelve months is around 0.77%, less than SGOV's 3.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SGOV iShares 0-3 Month Treasury Bond ETF | 3.85% | 4.10% | 5.10% | 4.87% | 1.45% | 0.03% | 0.05% | 0.00% | 0.00% | 0.00% | 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
XLY and SGOV have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLY has higher volatility (5.32%) compared to SGOV (0.06%). In terms of maximum drawdown, XLY dropped -59.05% vs SGOV's -0.03%.
On 5-year performance, XLY leads with 6.99% vs 3.55% for SGOV. On fees, SGOV is cheaper at 0.09% per year. On volatility, SGOV has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XLY has performed better with a 6.99% return vs 3.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SGOV is cheaper with a 0.09% expense ratio, compared with 0.13% for XLY.
SGOV has the higher dividend yield at 3.85%, compared with 0.77% for XLY.
XLY is categorized as Consumer Discretionary Equities, while SGOV is Ultrashort Bond. XLY tracks Consumer Discretionary Select Sector Index, while SGOV tracks ICE 0-3 Month US Treasury Securities Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLY and 0.09% for SGOV.
SGOV currently has the higher Sharpe Ratio (20.28 vs 0.54), 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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