XLY vs. XLB
Compare and contrast key facts about Consumer Discretionary Select Sector SPDR Fund (XLY) and Materials Select Sector SPDR ETF (XLB).
XLY and XLB are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLY is a passively managed fund by State Street that tracks the performance of the Consumer Discretionary Select Sector Index. It was launched on Dec 16, 1998. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. Both XLY and XLB are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLY or XLB.
Key characteristics
| XLY | XLB | |
|---|---|---|
| YTD Return | -2.29% | 4.38% |
| 1Y Return | 22.27% | 15.59% |
| 3Y Return (Ann) | -0.01% | 4.29% |
| 5Y Return (Ann) | 8.66% | 11.59% |
| 10Y Return (Ann) | 12.00% | 8.80% |
| Sharpe Ratio | 1.24 | 0.97 |
| Daily Std Dev | 17.51% | 14.72% |
| Max Drawdown | -59.05% | -59.83% |
| Current Drawdown | -15.80% | -4.40% |
Correlation
The correlation between XLY and XLB is 0.65, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XLY vs. XLB - Performance Comparison
In the year-to-date period, XLY achieves a -2.29% return, which is significantly lower than XLB's 4.38% return. Over the past 10 years, XLY has outperformed XLB with an annualized return of 12.00%, while XLB has yielded a comparatively lower 8.80% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLY vs. XLB - Expense Ratio Comparison
Both XLY and XLB have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
XLY vs. XLB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and Materials Select Sector SPDR ETF (XLB). 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.
Dividends
XLY vs. XLB - Dividend Comparison
XLY's dividend yield for the trailing twelve months is around 0.77%, less than XLB's 1.92% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLY Consumer Discretionary Select Sector SPDR Fund | 0.77% | 0.78% | 1.00% | 0.53% | 0.82% | 1.28% | 1.34% | 1.20% | 1.71% | 1.43% | 1.31% | 1.16% |
XLB Materials Select Sector SPDR ETF | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
Drawdowns
XLY vs. XLB - Drawdown Comparison
The maximum XLY drawdown since its inception was -59.05%, roughly equal to the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for XLY and XLB. For additional features, visit the drawdowns tool.
Volatility
XLY vs. XLB - Volatility Comparison
Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 4.45% compared to Materials Select Sector SPDR ETF (XLB) at 3.56%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.