XLY vs. XLC

Last updated Jul 22, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, XLY returned 5.68%/yr vs 7.29%/yr for XLC. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.13% expense ratio.

Performance

XLY vs. XLC - Performance Comparison

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

Returns By Period

In the year-to-date period, XLY achieves a -3.42% return, which is significantly higher than XLC's -5.99% return.

XLY

• 1D: 0.23%
• 1M: -1.76%
• 6M: -3.18%
• YTD: -3.42%
• 1Y: 3.72%
• 3Y*: 11.25%
• 5Y*: 5.68%
• 10Y*: 12.06%
• ALL TIME*: 9.55%

XLC

• 1D: -0.69%
• 1M: 0.79%
• 6M: -2.47%
• YTD: -5.99%
• 1Y: 3.53%
• 3Y*: 20.18%
• 5Y*: 7.29%
• 10Y*: —
• ALL TIME*: 11.40%

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

XLY vs. XLC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
XLY Consumer Discretionary Select Sector SPDR Fund	-3.42%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	-10.92%
XLC Communication Services Select Sector SPDR Fund	-5.99%	23.08%	34.71%	52.82%	-37.63%	15.96%	26.90%	31.05%	-16.45%

Correlation

The correlation between XLY and XLC is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018	0.75

The correlation between XLY and XLC shifts across timeframes, from 0.62 (1 year) to 0.75 (all time), reflecting how their relationship changes across market environments.

XLY vs. XLC - Sectors Allocation Comparison

Sectors	XLY	XLC
Consumer Cyclical	97.1%	-
Communication Services	1.8%	91.2%
Technology	1.0%	8.7%
Industrials	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLY vs. XLC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XLY

XLY Risk / Return Rank: 14
XLY Sharpe Ratio Rank: 14
XLY Sortino Ratio Rank: 14
XLY Omega Ratio Rank: 13
XLY Calmar Ratio Rank: 14
XLY Martin Ratio Rank: 15

XLC

XLC Risk / Return Rank: 15
XLC Sharpe Ratio Rank: 15
XLC Sortino Ratio Rank: 14
XLC Omega Ratio Rank: 14
XLC Calmar Ratio Rank: 15
XLC Martin Ratio Rank: 16

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. XLC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and Communication Services Select Sector SPDR Fund (XLC). 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	XLC	Difference
Sharpe ratio: Return per unit of total volatility	0.20	0.26	-0.06
Sortino ratio: Return per unit of downside risk	0.41	0.46	-0.04
Omega ratio: Gain probability vs. loss probability	1.05	1.05	-0.01
Calmar ratio: Return relative to maximum drawdown	0.25	0.31	-0.06
Martin ratio: Return relative to average drawdown	0.71	0.84	-0.13

XLY vs. XLC - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.20, which is comparable to the XLC Sharpe Ratio of 0.26. The chart below compares the historical Sharpe Ratios of XLY and XLC, 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. XLC - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for XLY and XLC.

Drawdown Indicators

	XLY	XLC	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-46.65%	-12.40%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-11.57%	-3.41%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-17.97%	-8.04%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-46.65%	+6.98%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	—	—
Current Drawdown Current decline from peak	-7.38%	-7.84%	+0.46%
Average Drawdown Average peak-to-trough decline	-9.54%	-10.55%	+1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.27%	4.22%	+1.05%

Volatility

XLY vs. XLC - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) and Communication Services Select Sector SPDR Fund (XLC) have volatilities of 5.26% and 5.32%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLY	XLC	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	5.32%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	14.15%	11.11%	+3.04%
Volatility (1Y) Calculated over the trailing 1-year period	18.70%	13.95%	+4.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.95%	20.79%	+3.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.10%	22.13%	-0.03%

XLY vs. XLC - Expense Ratio Comparison

Both XLY and XLC 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%.

Dividends

XLY vs. XLC - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.79%, less than XLC's 1.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLC Communication Services Select Sector SPDR Fund	1.30%	1.13%	0.99%	0.82%	1.10%	0.74%	0.68%	0.82%	0.64%	0.00%	0.00%	0.00%
XLY Consumer Discretionary Select Sector SPDR Fund	0.79%	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 XLC in my portfolio?

XLY and XLC have a correlation of 0.62, 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 XLC?

XLC has higher volatility (5.32%) compared to XLY (5.26%). In terms of maximum drawdown, XLY dropped -59.05% vs XLC's -46.65%.

Which ETF is better, XLY or XLC?

On 5-year performance, XLC leads with 7.29% vs 5.68% for XLY. Both ETFs have the same 0.13% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLY or XLC?

Over the 5-year period, XLC has performed better with a 7.29% return vs 5.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLY or XLC?

XLY and XLC have the same expense ratio: 0.13% per year.

Which ETF pays a higher dividend yield, XLY or XLC?

XLC has the higher dividend yield at 1.30%, compared with 0.79% for XLY.

What is the main difference between XLY and XLC?

XLY is categorized as Consumer Discretionary Equities, while XLC is Communications Equities. XLY tracks Consumer Discretionary Select Sector Index, while XLC tracks S&P Communication Services Select Sector Index.

Which has better risk-adjusted returns?

XLC currently has the higher Sharpe Ratio (0.26 vs 0.20), 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.