XLY vs. TIP
XLY (Consumer Discretionary Select Sector SPDR Fund) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, XLY returned 12.72%/yr vs 2.50%/yr for TIP. At a correlation of -0.09, they often move in opposite directions. XLY charges 0.13%/yr vs 0.18%/yr for TIP.
Performance
XLY vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, XLY achieves a -2.41% return, which is significantly lower than TIP's 1.39% return. Over the past 10 years, XLY has outperformed TIP with an annualized return of 12.72%, while TIP has yielded a comparatively lower 2.50% annualized return.
XLY
- 1D
- 2.48%
- 1M
- -1.68%
- YTD
- -2.41%
- 6M
- -2.84%
- 1Y
- 9.18%
- 3Y*
- 13.28%
- 5Y*
- 6.94%
- 10Y*
- 12.72%
TIP
- 1D
- 0.36%
- 1M
- -0.22%
- YTD
- 1.39%
- 6M
- 1.25%
- 1Y
- 4.90%
- 3Y*
- 3.82%
- 5Y*
- 0.91%
- 10Y*
- 2.50%
XLY vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLY Consumer Discretionary Select Sector SPDR Fund | -2.41% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.63% | 28.39% | 1.58% | 22.82% |
TIP iShares TIPS Bond ETF | 1.39% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between XLY and TIP is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.18 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since Dec 5, 2003 | -0.09 |
The correlation between XLY and TIP shifts across timeframes, from -0.09 (all time) to 0.22 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
XLY vs. TIP — Risk / Return Rank
XLY
TIP
XLY vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and iShares TIPS Bond ETF (TIP). 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 | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.95 | ||
| Sortino ratioReturn per unit of downside risk | -1.41 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.26 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 0.62 | 2.49 | -1.87 |
| Martin ratioReturn relative to average drawdown | 1.89 | 7.44 | -5.55 |
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Drawdowns
XLY vs. TIP - Drawdown Comparison
The maximum XLY drawdown since its inception was -59.05%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for XLY and TIP.
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Drawdown Indicators
| XLY | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.05% | -14.57% | -44.48% |
Max Drawdown (1Y)Largest decline over 1 year | -14.98% | -1.98% | -13.00% |
Max Drawdown (3Y)Largest decline over 3 years | -26.01% | -4.54% | -21.47% |
Max Drawdown (5Y)Largest decline over 5 years | -39.67% | -14.51% | -25.16% |
Max Drawdown (10Y)Largest decline over 10 years | -39.67% | -14.51% | -25.16% |
Current DrawdownCurrent decline from peak | -6.41% | -0.47% | -5.94% |
Average DrawdownAverage peak-to-trough decline | -9.55% | -3.43% | -6.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.86% | 0.66% | +4.20% |
Volatility
XLY vs. TIP - Volatility Comparison
Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 6.20% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLY | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.20% | 1.03% | +5.17% |
Volatility (6M)Calculated over the trailing 6-month period | 13.52% | 2.35% | +11.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.29% | 3.39% | +14.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.84% | 6.21% | +17.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.08% | 5.74% | +16.34% |
XLY vs. TIP - Expense Ratio Comparison
XLY has a 0.13% expense ratio, which is lower than TIP's 0.18% expense ratio. Despite the difference, 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. TIP - Dividend Comparison
XLY's dividend yield for the trailing twelve months is around 0.77%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 3.76% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
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 TIP have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLY has higher volatility (6.20%) compared to TIP (1.03%). In terms of maximum drawdown, XLY dropped -59.05% vs TIP's -14.57%.
On 10-year performance, XLY leads with 12.72% vs 2.50% for TIP. On fees, XLY is cheaper at 0.13% per year. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLY has performed better with a 12.72% return vs 2.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLY is cheaper with a 0.13% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 0.77% for XLY.
XLY is categorized as Consumer Discretionary Equities, while TIP is Inflation-Protected Bonds. XLY tracks Consumer Discretionary Select Sector Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLY and 0.18% for TIP.
TIP currently has the higher Sharpe Ratio (1.45 vs 0.50), 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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