XRT vs. XLI

Last updated Jun 14, 2026

XRT (SPDR S&P Retail ETF) and XLI (Industrial Select Sector SPDR Fund) are both exchange-traded funds - XRT is a Consumer Discretionary Equities fund tracking the S&P Retail Select Industry, while XLI is a Industrials Equities fund tracking the Industrial Select Sector Index. Both are passively managed. Over the past 10 years, XRT returned 9.52%/yr vs 14.15%/yr for XLI. A 0.70 correlation means they provide meaningful diversification when combined. XRT charges 0.35%/yr vs 0.08%/yr for XLI.

Performance

XRT vs. XLI - Performance Comparison

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

Returns By Period

In the year-to-date period, XRT achieves a 3.14% return, which is significantly lower than XLI's 13.90% return. Over the past 10 years, XRT has underperformed XLI with an annualized return of 9.52%, while XLI has yielded a comparatively higher 14.15% annualized return.

XRT

• 1D: 0.07%
• 1M: 9.14%
• YTD: 3.14%
• 6M: 0.29%
• 1Y: 17.43%
• 3Y*: 12.80%
• 5Y*: -0.36%
• 10Y*: 9.52%

XLI

• 1D: 0.59%
• 1M: 0.96%
• YTD: 13.90%
• 6M: 13.10%
• 1Y: 25.17%
• 3Y*: 20.87%
• 5Y*: 12.93%
• 10Y*: 14.15%

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

XRT vs. XLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XRT SPDR S&P Retail ETF	3.14%	8.07%	11.78%	21.53%	-31.64%	42.60%	41.91%	14.12%	-8.04%	4.22%
XLI Industrial Select Sector SPDR Fund	13.90%	19.35%	17.31%	18.13%	-5.57%	21.08%	10.91%	29.08%	-13.25%	23.98%

Correlation

The correlation between XRT and XLI 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	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.70

The correlation between XRT and XLI has been stable across timeframes, ranging from 0.62 to 0.71 - a consistent structural relationship.

XRT vs. XLI - Sectors Allocation Comparison

Sectors	XRT	XLI
Consumer Cyclical	76.5%	0.5%
Consumer Defensive	19.2%	-
Communication Services	1.5%	-
Technology	1.4%	3.8%
Energy	1.3%	-
Healthcare	1.3%	-
Basic Materials	-	-
Financial Services	-	-
Industrials	-	90.9%
Real Estate	-	-
Utilities	-	4.8%

Return for Risk

XRT vs. XLI — Risk / Return Rank

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

XRT

XRT Risk / Return Rank: 23
XRT Sharpe Ratio Rank: 23
XRT Sortino Ratio Rank: 24
XRT Omega Ratio Rank: 22
XRT Calmar Ratio Rank: 26
XRT Martin Ratio Rank: 22

XLI

XLI Risk / Return Rank: 48
XLI Sharpe Ratio Rank: 49
XLI Sortino Ratio Rank: 50
XLI Omega Ratio Rank: 46
XLI Calmar Ratio Rank: 45
XLI Martin Ratio Rank: 52

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.

XRT vs. XLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Retail ETF (XRT) and Industrial Select Sector SPDR Fund (XLI). 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.

	XRT	XLI	Difference
Sharpe ratio: Return per unit of total volatility	0.72	1.50	-0.78
Sortino ratio: Return per unit of downside risk	1.19	2.17	-0.98
Omega ratio: Gain probability vs. loss probability	1.13	1.26	-0.13
Calmar ratio: Return relative to maximum drawdown	1.09	1.98	-0.90
Martin ratio: Return relative to average drawdown	2.48	7.82	-5.33

XRT vs. XLI - Sharpe Ratio Comparison

The current XRT Sharpe Ratio is 0.72, which is lower than the XLI Sharpe Ratio of 1.50. The chart below compares the historical Sharpe Ratios of XRT and XLI, 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

XRT vs. XLI - Drawdown Comparison

The maximum XRT drawdown since its inception was -65.81%, which is greater than XLI's maximum drawdown of -62.26%. Use the drawdown chart below to compare losses from any high point for XRT and XLI.

Drawdown Indicators

	XRT	XLI	Difference
Max Drawdown Largest peak-to-trough decline	-65.81%	-62.26%	-3.55%
Max Drawdown (1Y) Largest decline over 1 year	-13.53%	-12.21%	-1.32%
Max Drawdown (3Y) Largest decline over 3 years	-25.62%	-18.49%	-7.13%
Max Drawdown (5Y) Largest decline over 5 years	-44.57%	-21.64%	-22.93%
Max Drawdown (10Y) Largest decline over 10 years	-47.02%	-42.33%	-4.69%
Current Drawdown Current decline from peak	-9.32%	-1.24%	-8.08%
Average Drawdown Average peak-to-trough decline	-14.99%	-9.20%	-5.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.92%	3.09%	+2.83%

Volatility

XRT vs. XLI - Volatility Comparison

The current volatility for SPDR S&P Retail ETF (XRT) is 5.73%, while Industrial Select Sector SPDR Fund (XLI) has a volatility of 6.22%. This indicates that XRT experiences smaller price fluctuations and is considered to be less risky than XLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XRT	XLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	6.22%	-0.49%
Volatility (6M) Calculated over the trailing 6-month period	13.90%	13.59%	+0.31%
Volatility (1Y) Calculated over the trailing 1-year period	20.59%	16.17%	+4.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.91%	17.55%	+9.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.17%	20.04%	+7.13%

XRT vs. XLI - Expense Ratio Comparison

XRT has a 0.35% expense ratio, which is higher than XLI's 0.08% expense ratio.

Dividends

XRT vs. XLI - Dividend Comparison

XRT's dividend yield for the trailing twelve months is around 0.79%, less than XLI's 1.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLI Industrial Select Sector SPDR Fund	1.16%	1.29%	1.44%	1.63%	1.63%	1.25%	1.55%	1.94%	2.15%	1.77%	2.07%	2.15%
XRT SPDR S&P Retail ETF	0.79%	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 XRT and XLI in my portfolio?

XRT and XLI 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, XRT or XLI?

XLI has higher volatility (6.22%) compared to XRT (5.73%). In terms of maximum drawdown, XRT dropped -65.81% vs XLI's -62.26%.

Which ETF is better, XRT or XLI?

On 10-year performance, XLI leads with 14.15% vs 9.52% for XRT. On fees, XLI is cheaper at 0.08% per year. On volatility, XRT has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XRT or XLI?

Over the 10-year period, XLI has performed better with a 14.15% return vs 9.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XRT or XLI?

XLI is cheaper with a 0.08% expense ratio, compared with 0.35% for XRT.

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

XLI has the higher dividend yield at 1.16%, compared with 0.79% for XRT.

What is the main difference between XRT and XLI?

XRT is categorized as Consumer Discretionary Equities, while XLI is Industrials Equities. XRT tracks S&P Retail Select Industry, while XLI tracks Industrial Select Sector Index. Their fees differ too: 0.35% for XRT and 0.08% for XLI.

Which has better risk-adjusted returns?

XLI currently has the higher Sharpe Ratio (1.50 vs 0.72), 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.