XOP vs. IEO

Last updated Jun 5, 2026

XOP (SPDR S&P Oil & Gas Exploration & Production ETF) and IEO (iShares U.S. Oil & Gas Exploration & Production ETF) are both Energy Equities funds - XOP tracks the S&P Oil & Gas Exploration & Production Select Industry while IEO tracks the Dow Jones U.S. Select Oil Exploration & Production Index. Both are passively managed. Over the past 10 years, XOP returned 3.52%/yr vs 10.17%/yr for IEO. With a 0.97 correlation, they move nearly in lockstep. XOP charges 0.35%/yr vs 0.42%/yr for IEO.

Performance

XOP vs. IEO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XOP having a 35.99% return and IEO slightly lower at 34.23%. Over the past 10 years, XOP has underperformed IEO with an annualized return of 3.52%, while IEO has yielded a comparatively higher 10.17% annualized return.

XOP

• 1D: -0.06%
• 1M: -5.30%
• YTD: 35.99%
• 6M: 26.73%
• 1Y: 45.20%
• 3Y*: 14.61%
• 5Y*: 14.84%
• 10Y*: 3.52%

IEO

• 1D: -0.27%
• 1M: -3.10%
• YTD: 34.23%
• 6M: 25.78%
• 1Y: 43.06%
• 3Y*: 16.29%
• 5Y*: 18.90%
• 10Y*: 10.17%

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

XOP vs. IEO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XOP SPDR S&P Oil & Gas Exploration & Production ETF	35.99%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%
IEO iShares U.S. Oil & Gas Exploration & Production ETF	34.23%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%

Correlation

The correlation between XOP and IEO is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.97

The correlation between XOP and IEO has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

XOP vs. IEO - Sectors Allocation Comparison

Sectors	XOP	IEO
Energy	97.2%	99.3%
Basic Materials	2.9%	0.7%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XOP vs. IEO — Risk / Return Rank

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

XOP

XOP Risk / Return Rank: 49
XOP Sharpe Ratio Rank: 49
XOP Sortino Ratio Rank: 43
XOP Omega Ratio Rank: 43
XOP Calmar Ratio Rank: 61
XOP Martin Ratio Rank: 47

IEO

IEO Risk / Return Rank: 51
IEO Sharpe Ratio Rank: 51
IEO Sortino Ratio Rank: 46
IEO Omega Ratio Rank: 45
IEO Calmar Ratio Rank: 62
IEO Martin Ratio Rank: 49

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.

XOP vs. IEO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). 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.

	XOP	IEO	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.73	-0.09
Sortino ratio: Return per unit of downside risk	2.14	2.25	-0.12
Omega ratio: Gain probability vs. loss probability	1.27	1.28	-0.01
Calmar ratio: Return relative to maximum drawdown	3.00	3.03	-0.03
Martin ratio: Return relative to average drawdown	7.66	8.15	-0.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XOP vs. IEO - Sharpe Ratio Comparison

The current XOP Sharpe Ratio is 1.64, which is comparable to the IEO Sharpe Ratio of 1.73. The chart below compares the historical Sharpe Ratios of XOP and IEO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XOP	IEO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.64	1.73	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.62	-0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.09	0.29	-0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.06	0.17	-0.11

Drawdowns

XOP vs. IEO - Drawdown Comparison

The maximum XOP drawdown since its inception was -90.27%, which is greater than IEO's maximum drawdown of -79.17%. Use the drawdown chart below to compare losses from any high point for XOP and IEO.

Drawdown Indicators

	XOP	IEO	Difference
Max Drawdown Largest peak-to-trough decline	-90.27%	-79.17%	-11.10%
Max Drawdown (1Y) Largest decline over 1 year	-15.14%	-14.30%	-0.84%
Max Drawdown (3Y) Largest decline over 3 years	-34.98%	-31.46%	-3.52%
Max Drawdown (5Y) Largest decline over 5 years	-34.98%	-31.46%	-3.52%
Max Drawdown (10Y) Largest decline over 10 years	-82.61%	-75.00%	-7.61%
Current Drawdown Current decline from peak	-36.44%	-7.55%	-28.89%
Average Drawdown Average peak-to-trough decline	-42.59%	-26.27%	-16.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.92%	5.30%	+0.62%

Volatility

XOP vs. IEO - Volatility Comparison

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a higher volatility of 10.03% compared to iShares U.S. Oil & Gas Exploration & Production ETF (IEO) at 9.31%. This indicates that XOP's price experiences larger fluctuations and is considered to be riskier than IEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XOP	IEO	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.03%	9.31%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	21.57%	19.80%	+1.77%
Volatility (1Y) Calculated over the trailing 1-year period	27.74%	25.11%	+2.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.88%	30.53%	+3.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.27%	34.99%	+5.28%

XOP vs. IEO - Expense Ratio Comparison

XOP has a 0.35% expense ratio, which is lower than IEO's 0.42% expense ratio.

Dividends

XOP vs. IEO - Dividend Comparison

XOP's dividend yield for the trailing twelve months is around 1.90%, less than IEO's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	1.97%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	1.90%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both XOP and IEO in my portfolio?

With a correlation of 0.98, XOP and IEO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XOP or IEO?

XOP has higher volatility (10.03%) compared to IEO (9.31%). In terms of maximum drawdown, XOP dropped -90.27% vs IEO's -79.17%.

Which ETF is better, XOP or IEO?

On 10-year performance, IEO leads with 10.17% vs 3.52% for XOP. On fees, XOP is cheaper at 0.35% per year. On volatility, IEO has been the lower-risk option at 9.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOP or IEO?

Over the 10-year period, IEO has performed better with a 10.17% return vs 3.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOP or IEO?

XOP is cheaper with a 0.35% expense ratio, compared with 0.42% for IEO.

Which ETF pays a higher dividend yield, XOP or IEO?

IEO has the higher dividend yield at 1.97%, compared with 1.90% for XOP.

What is the main difference between XOP and IEO?

XOP tracks S&P Oil & Gas Exploration & Production Select Industry, while IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XOP and 0.42% for IEO.

Which has better risk-adjusted returns?

IEO currently has the higher Sharpe Ratio (1.73 vs 1.64), 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.