XLY vs. XLP
Compare and contrast key facts about Consumer Discretionary Select Sector SPDR Fund (XLY) and Consumer Staples Select Sector SPDR Fund (XLP).
XLY and XLP 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. XLP is a passively managed fund by State Street that tracks the performance of the Consumer Staples Select Sector Index. It was launched on Dec 16, 1998. Both XLY and XLP 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 XLP.
Key characteristics
| XLY | XLP | |
|---|---|---|
| YTD Return | -2.29% | 5.94% |
| 1Y Return | 22.27% | 2.34% |
| 3Y Return (Ann) | -0.01% | 6.01% |
| 5Y Return (Ann) | 8.66% | 8.74% |
| 10Y Return (Ann) | 12.00% | 8.37% |
| Sharpe Ratio | 1.24 | 0.15 |
| Daily Std Dev | 17.51% | 10.56% |
| Max Drawdown | -59.05% | -35.89% |
| Current Drawdown | -15.80% | -0.80% |
Correlation
The correlation between XLY and XLP is 0.57, 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. XLP - Performance Comparison
In the year-to-date period, XLY achieves a -2.29% return, which is significantly lower than XLP's 5.94% return. Over the past 10 years, XLY has outperformed XLP with an annualized return of 12.00%, while XLP has yielded a comparatively lower 8.37% 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. XLP - Expense Ratio Comparison
Both XLY and XLP 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. XLP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and Consumer Staples Select Sector SPDR Fund (XLP). 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. XLP - Dividend Comparison
XLY's dividend yield for the trailing twelve months is around 0.77%, less than XLP's 2.77% 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% |
XLP Consumer Staples Select Sector SPDR Fund | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% | 2.40% | 2.39% |
Drawdowns
XLY vs. XLP - Drawdown Comparison
The maximum XLY drawdown since its inception was -59.05%, which is greater than XLP's maximum drawdown of -35.89%. Use the drawdown chart below to compare losses from any high point for XLY and XLP. For additional features, visit the drawdowns tool.
Volatility
XLY vs. XLP - Volatility Comparison
Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 4.45% compared to Consumer Staples Select Sector SPDR Fund (XLP) at 2.90%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than XLP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.