XLY vs. XRT

Last updated Aug 2, 2026

XLY (Consumer Discretionary Select Sector SPDR Fund) and XRT (SPDR S&P Retail ETF) are both Consumer Discretionary Equities funds from State Street - XLY tracks the Consumer Discretionary Select Sector Index while XRT tracks the S&P Retail Select Industry Index. Both are passively managed. Over the past 10 years, XLY returned 12.33%/yr vs 9.06%/yr for XRT. Their 0.79 correlation means they have sometimes moved together and sometimes differently. XLY charges 0.13%/yr vs 0.35%/yr for XRT.

Performance

XLY vs. XRT - Performance Comparison

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

Returns By Period

In the year-to-date period, XLY achieves a -2.39% return, which is significantly lower than XRT's 5.78% return. Over the past 10 years, XLY has outperformed XRT with an annualized return of 12.33%, while XRT has yielded a comparatively lower 9.06% annualized return.

XLY

• 1D: 3.29%
• 1M: -0.88%
• 6M: -3.81%
• YTD: -2.39%
• 1Y: 8.28%
• 3Y*: 11.47%
• 5Y*: 6.04%
• 10Y*: 12.33%
• ALL TIME*: 9.58%

XRT

• 1D: -0.88%
• 1M: 1.95%
• 6M: 4.50%
• YTD: 5.78%
• 1Y: 16.25%
• 3Y*: 11.34%
• 5Y*: 0.37%
• 10Y*: 9.06%
• ALL TIME*: 9.58%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
XLY Consumer Discretionary Select Sector SPDR Fund	$945.87M	$987.54M	$948.83M
XRT SPDR S&P Retail ETF	$422.92M	$379.59M	$454.03M

XLY vs. XRT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLY Consumer Discretionary Select Sector SPDR Fund	-2.39%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%
XRT SPDR S&P Retail ETF	5.78%	8.07%	11.78%	21.53%	-31.64%	42.60%	41.91%	14.12%	-8.04%	4.22%

Correlation

The correlation between XLY and XRT is 0.65, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.65
Correlation (3Y) Balances recent behavior with more history.	0.67
Correlation (5Y) Shows whether the relationship held over a longer period.	0.74
Correlation (10Y) Provides a long-term view across more market conditions.	0.72
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.79

The correlation between XLY and XRT shifts across timeframes, from 0.65 (1 year) to 0.79 (all time), reflecting how their relationship changes across market environments.

XLY vs. XRT - Sectors Allocation Comparison

Sectors	XLY	XRT
Consumer Cyclical	97.1%	75.2%
Communication Services	1.7%	1.8%
Technology	1.1%	2.7%
Industrials	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	18.7%
Energy	-	1.3%
Financial Services	-	-
Healthcare	-	1.6%
Real Estate	-	-
Utilities	-	-

Return for Risk

XLY vs. XRT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XLY

XLY Risk / Return Rank: 17
XLY Sharpe Ratio Rank: 17
XLY Sortino Ratio Rank: 17
XLY Omega Ratio Rank: 17
XLY Calmar Ratio Rank: 17
XLY Martin Ratio Rank: 18

XRT

XRT Risk / Return Rank: 31
XRT Sharpe Ratio Rank: 30
XRT Sortino Ratio Rank: 33
XRT Omega Ratio Rank: 29
XRT Calmar Ratio Rank: 34
XRT Martin Ratio Rank: 30

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XLY vs. XRT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Consumer Discretionary Select Sector SPDR Fund (XLY) and SPDR S&P Retail ETF (XRT). 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	XRT	Difference
Sharpe ratio: Return per unit of total volatility	0.29	0.74	-0.45
Sortino ratio: Return per unit of downside risk	0.54	1.23	-0.69
Omega ratio: Gain probability vs. loss probability	1.06	1.14	-0.07
Calmar ratio: Return relative to maximum drawdown	0.38	1.14	-0.76
Martin ratio: Return relative to average drawdown	1.03	2.57	-1.55

XLY vs. XRT - Sharpe Ratio Comparison

The current XLY Sharpe Ratio is 0.29, which is lower than the XRT Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of XLY and XRT, 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. XRT - Drawdown Comparison

The maximum XLY drawdown since its inception was -59.05%, smaller than the maximum XRT drawdown of -65.81%. Use the drawdown chart below to compare losses from any high point for XLY and XRT.

Drawdown Indicators

	XLY	XRT	Difference
Max Drawdown Largest peak-to-trough decline	-59.05%	-65.81%	+6.76%
Max Drawdown (1Y) Largest decline over 1 year	-14.98%	-13.53%	-1.45%
Max Drawdown (3Y) Largest decline over 3 years	-26.01%	-25.62%	-0.39%
Max Drawdown (5Y) Largest decline over 5 years	-39.67%	-44.57%	+4.90%
Max Drawdown (10Y) Largest decline over 10 years	-39.67%	-47.02%	+7.35%
Current Drawdown Current decline from peak	-6.40%	-7.00%	+0.60%
Average Drawdown Average peak-to-trough decline	-9.54%	-14.95%	+5.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.53%	5.97%	-0.44%

Volatility

XLY vs. XRT - Volatility Comparison

Consumer Discretionary Select Sector SPDR Fund (XLY) has a higher volatility of 7.28% compared to SPDR S&P Retail ETF (XRT) at 6.04%. This indicates that XLY's price experiences larger fluctuations and is considered to be riskier than XRT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLY	XRT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.28%	6.04%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	15.04%	14.92%	+0.12%
Volatility (1Y) Calculated over the trailing 1-year period	19.53%	20.84%	-1.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.07%	26.89%	-2.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.18%	27.20%	-5.02%

XLY vs. XRT - Expense Ratio Comparison

XLY has a 0.13% expense ratio, which is lower than XRT's 0.35% expense ratio.

Dividends

XLY vs. XRT - Dividend Comparison

XLY's dividend yield for the trailing twelve months is around 0.78%, more than XRT's 0.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLY Consumer Discretionary Select Sector SPDR Fund	0.78%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%
XRT SPDR S&P Retail ETF	0.75%	0.77%	1.52%	1.40%	2.15%	1.55%	1.01%	1.57%	1.51%	1.52%	1.36%	1.30%

Frequently Asked Questions

Can I hold both XLY and XRT in my portfolio?

XLY and XRT have a correlation of 0.65, 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 XRT?

XLY has higher volatility (7.28%) compared to XRT (6.04%). In terms of maximum drawdown, XLY dropped -59.05% vs XRT's -65.81%.

Which ETF is better, XLY or XRT?

On 10-year performance, XLY leads with 12.33% vs 9.06% for XRT. On fees, XLY is cheaper at 0.13% per year. On volatility, XRT has been the lower-risk option at 6.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLY or XRT?

Over the 10-year period, XLY has performed better with a 12.33% return vs 9.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLY or XRT?

XLY is cheaper with a 0.13% expense ratio, compared with 0.35% for XRT.

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

XLY has the higher dividend yield at 0.78%, compared with 0.75% for XRT.

What is the main difference between XLY and XRT?

XLY tracks Consumer Discretionary Select Sector Index, while XRT tracks S&P Retail Select Industry Index. Their fees differ too: 0.13% for XLY and 0.35% for XRT.

Which has better risk-adjusted returns?

XRT currently has the higher Sharpe Ratio (0.74 vs 0.29), 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.