XOP vs. IEZ

Last updated Jul 14, 2026

XOP (SPDR S&P Oil & Gas Exploration & Production ETF) and IEZ (iShares U.S. Oil Equipment & Services ETF) are both Energy Equities funds - XOP tracks the S&P Oil & Gas Exploration & Production Select Industry while IEZ tracks the Dow Jones U.S. Select Oil Equipment & Services Index. Both are passively managed. Over the past 10 years, XOP returned 3.69%/yr vs -1.73%/yr for IEZ. Their correlation of 0.86 suggests significant overlap in exposure. XOP charges 0.35%/yr vs 0.42%/yr for IEZ.

Performance

XOP vs. IEZ - 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 Equipment & Services ETF (IEZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XOP having a 32.00% return and IEZ slightly higher at 32.50%. Over the past 10 years, XOP has outperformed IEZ with an annualized return of 3.69%, while IEZ has yielded a comparatively lower -1.73% annualized return.

XOP

• 1D: 4.17%
• 1M: 0.40%
• 6M: 30.68%
• YTD: 32.00%
• 1Y: 27.02%
• 3Y*: 11.17%
• 5Y*: 16.31%
• 10Y*: 3.69%

IEZ

• 1D: 0.40%
• 1M: -9.88%
• 6M: 21.29%
• YTD: 32.50%
• 1Y: 51.61%
• 3Y*: 8.78%
• 5Y*: 15.65%
• 10Y*: -1.73%

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

XOP vs. IEZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XOP SPDR S&P Oil & Gas Exploration & Production ETF	32.00%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%
IEZ iShares U.S. Oil Equipment & Services ETF	32.50%	7.51%	-8.15%	4.43%	65.73%	15.98%	-42.98%	1.82%	-42.47%	-18.18%

Correlation

The correlation between XOP and IEZ is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.84
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.86

Over the past year, the correlation between XOP and IEZ has dropped to 0.61 - well below their long-term average of 0.86, suggesting their price drivers have been diverging.

XOP vs. IEZ - Sectors Allocation Comparison

Sectors	XOP	IEZ
Energy	96.8%	99.3%
Basic Materials	3.2%	-
Industrials	2.2%	0.7%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	1.0%

Return for Risk

XOP vs. IEZ — Risk / Return Rank

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

XOP

XOP Risk / Return Rank: 32
XOP Sharpe Ratio Rank: 32
XOP Sortino Ratio Rank: 32
XOP Omega Ratio Rank: 30
XOP Calmar Ratio Rank: 36
XOP Martin Ratio Rank: 31

IEZ

IEZ Risk / Return Rank: 65
IEZ Sharpe Ratio Rank: 69
IEZ Sortino Ratio Rank: 65
IEZ Omega Ratio Rank: 61
IEZ Calmar Ratio Rank: 64
IEZ Martin Ratio Rank: 64

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. IEZ - 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 Equipment & Services ETF (IEZ). 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.

	XOP	IEZ	Difference
Sharpe ratio: Return per unit of total volatility	0.96	1.77	-0.81
Sortino ratio: Return per unit of downside risk	1.40	2.40	-1.00
Omega ratio: Gain probability vs. loss probability	1.17	1.29	-0.12
Calmar ratio: Return relative to maximum drawdown	1.47	2.55	-1.08
Martin ratio: Return relative to average drawdown	3.61	8.98	-5.37

XOP vs. IEZ - Sharpe Ratio Comparison

The current XOP Sharpe Ratio is 0.96, which is lower than the IEZ Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of XOP and IEZ, 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

XOP vs. IEZ - Drawdown Comparison

The maximum XOP drawdown since its inception was -90.27%, roughly equal to the maximum IEZ drawdown of -92.52%. Use the drawdown chart below to compare losses from any high point for XOP and IEZ.

Drawdown Indicators

	XOP	IEZ	Difference
Max Drawdown Largest peak-to-trough decline	-90.27%	-92.52%	+2.25%
Max Drawdown (1Y) Largest decline over 1 year	-18.50%	-20.34%	+1.84%
Max Drawdown (3Y) Largest decline over 3 years	-34.98%	-40.25%	+5.27%
Max Drawdown (5Y) Largest decline over 5 years	-34.98%	-40.25%	+5.27%
Max Drawdown (10Y) Largest decline over 10 years	-82.61%	-88.29%	+5.68%
Current Drawdown Current decline from peak	-38.30%	-56.27%	+17.97%
Average Drawdown Average peak-to-trough decline	-42.57%	-48.29%	+5.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.58%	5.82%	+1.76%

Volatility

XOP vs. IEZ - Volatility Comparison

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and iShares U.S. Oil Equipment & Services ETF (IEZ) have volatilities of 8.61% and 8.81%, 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

	XOP	IEZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.61%	8.81%	-0.20%
Volatility (6M) Calculated over the trailing 6-month period	22.15%	20.73%	+1.42%
Volatility (1Y) Calculated over the trailing 1-year period	28.35%	29.39%	-1.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.79%	36.18%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.17%	41.45%	-1.28%

XOP vs. IEZ - Expense Ratio Comparison

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

Dividends

XOP vs. IEZ - Dividend Comparison

XOP's dividend yield for the trailing twelve months is around 1.97%, more than IEZ's 1.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEZ iShares U.S. Oil Equipment & Services ETF	1.25%	1.87%	1.76%	0.97%	0.65%	1.20%	2.07%	2.28%	1.81%	3.42%	0.91%	2.40%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	1.97%	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 IEZ in my portfolio?

XOP and IEZ have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XOP or IEZ?

IEZ has higher volatility (8.81%) compared to XOP (8.61%). In terms of maximum drawdown, XOP dropped -90.27% vs IEZ's -92.52%.

Which ETF is better, XOP or IEZ?

On 10-year performance, XOP leads with 3.69% vs -1.73% for IEZ. On fees, XOP is cheaper at 0.35% per year. On volatility, XOP has been the lower-risk option at 8.61%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOP or IEZ?

Over the 10-year period, XOP has performed better with a 3.69% return vs -1.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOP or IEZ?

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

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

XOP has the higher dividend yield at 1.97%, compared with 1.25% for IEZ.

What is the main difference between XOP and IEZ?

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

Which has better risk-adjusted returns?

IEZ currently has the higher Sharpe Ratio (1.77 vs 0.96), 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.