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XLY vs. XLB
Performance
Return for Risk
Dividends
Drawdowns
Volatility

XLY vs. XLB

Last updated Apr 2, 2026

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.

Performance

XLY vs. XLB - Performance Comparison

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

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XLY vs. XLB - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLY
Consumer Discretionary Select Sector SPDR Fund		-7.86%7.37%26.51%39.64%-36.27%27.93%29.63%28.39%1.58%22.82%
XLB
Materials Select Sector SPDR ETF		11.76%9.94%0.15%12.46%-12.30%27.44%20.46%24.13%-14.88%24.01%

Returns By Period

In the year-to-date period, XLY achieves a -7.86% return, which is significantly lower than XLB's 11.76% return. Over the past 10 years, XLY has outperformed XLB with an annualized return of 11.88%, while XLB has yielded a comparatively lower 10.55% annualized return.

XLY

1D
0.75%
1M
-4.68%
YTD
-7.86%
6M
-8.57%
1Y
10.93%
3Y*
14.60%
5Y*
6.19%
10Y*
11.88%

XLB

1D
0.98%
1M
-4.82%
YTD
11.76%
6M
14.90%
1Y
19.23%
3Y*
9.89%
5Y*
7.00%
10Y*
10.55%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Consumer Discretionary Select Sector SPDR Fund

Materials Select Sector SPDR ETF

Often compared with XLY:
XLY vs. XLPXLY vs. SPYXLY vs. XRTXLY vs. FDISXLY vs. ^GSPCXLY vs. QQQXLY vs. SMH
Often compared with XLB:
XLB vs. REMXXLB vs. VAWXLB vs. XLEXLB vs. SPYXLB vs. FMATXLB vs. XLKXLB vs. GUNR

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%.

XLY
Consumer Discretionary Select Sector SPDR Fund
XLB
Materials Select Sector SPDR ETF

Return for Risk

XLY vs. XLB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLY
XLY Risk / Return Rank: 2828
Overall Rank
XLY Sharpe Ratio Rank: 2525
Sharpe Ratio Rank
XLY Sortino Ratio Rank: 2727
Sortino Ratio Rank
XLY Omega Ratio Rank: 2525
Omega Ratio Rank
XLY Calmar Ratio Rank: 3131
Calmar Ratio Rank
XLY Martin Ratio Rank: 3030
Martin Ratio Rank
XLB
XLB Risk / Return Rank: 4848
Overall Rank
XLB Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
XLB Sortino Ratio Rank: 5151
Sortino Ratio Rank
XLB Omega Ratio Rank: 4545
Omega Ratio Rank
XLB Calmar Ratio Rank: 5050
Calmar Ratio Rank
XLB Martin Ratio Rank: 4747
Martin Ratio Rank
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. XLB - Risk-Adjusted Trends 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.

XLYXLBDifference

Sharpe ratio

Return per unit of total volatility

0.46

0.92

-0.46

Sortino ratio

Return per unit of downside risk

0.85

1.42

-0.57

Omega ratio

Gain probability vs. loss probability

1.11

1.18

-0.08

Calmar ratio

Return relative to maximum drawdown

0.81

1.34

-0.54

Martin ratio

Return relative to average drawdown

2.66

4.67

-2.01

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. XLB - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.46, which is lower than the XLB Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of XLY and XLB, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

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Sharpe Ratios by Period

XLYXLBDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.46

0.92

-0.46

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.26

0.37

-0.11

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.54

0.51

+0.03

Sharpe Ratio (All Time)

Calculated using the full available price history

0.42

0.36

+0.06

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.

Dividends

XLY vs. XLB - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.81%, less than XLB's 1.73% yield.

TTM20252024202320222021202020192018201720162015
XLY
Consumer Discretionary Select Sector SPDR Fund		0.81%0.79%0.72%0.78%1.00%0.53%0.82%1.28%1.34%1.20%1.71%1.43%
XLB
Materials Select Sector SPDR ETF		1.73%1.92%1.92%2.00%2.26%1.62%1.72%1.98%2.20%1.66%1.95%2.24%

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.

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Drawdown Indicators

XLYXLBDifference

Max Drawdown

Largest peak-to-trough decline

-59.05%

-59.83%

+0.78%

Max Drawdown (1Y)

Largest decline over 1 year

-14.98%

-14.64%

-0.34%

Max Drawdown (5Y)

Largest decline over 5 years

-39.67%

-24.72%

-14.95%

Max Drawdown (10Y)

Largest decline over 10 years

-39.67%

-37.27%

-2.40%

Current Drawdown

Current decline from peak

-11.64%

-5.47%

-6.17%

Average Drawdown

Average peak-to-trough decline

-9.58%

-10.88%

+1.30%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.54%

4.21%

+0.33%

Volatility

XLY vs. XLB - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 7.36% compared to Materials Select Sector SPDR ETF (XLB) at 5.95%. 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.

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Volatility by Period

XLYXLBDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.36%

5.95%

+1.41%

Volatility (6M)

Calculated over the trailing 6-month period

13.63%

12.56%

+1.07%

Volatility (1Y)

Calculated over the trailing 1-year period

23.65%

20.94%

+2.71%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

23.73%

18.92%

+4.81%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.97%

20.61%

+1.36%