XLF vs XLI: returns, risk and drawdowns compared
Financial Select Sector SPDR Fund against Industrial Select Sector SPDR Fund, over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, XLF returned 16.9% a year and XLI 16.7% a year on average, so XLF came out ahead by 0.2% a year. XLI was the more volatile of the two (18.6% against 18.6% a year), and the deepest falls from a month-end high were 23.1% for XLF and 20.7% for XLI.
The correlation of monthly returns was 0.78: they usually moved together. Over 41 rolling 3-year periods, XLF did better in 24% and XLI in 76%.
Side by side
| XLF | XLI | |
|---|---|---|
| Annual return (CAGR) | +16.9% | +16.7% |
| Total return | +169% | +166% |
| Annual volatility | 18.6% | 18.6% |
| Maximum drawdown (month-end) | −23.1% | −20.7% |
| Worst month | −10.9% | −10.4% |
| Best month | +16.8% | +16.0% |
| Positive months | 57% | 54% |
| Best year | 2021: +34.8% | 2021: +21.1% |
| Worst year | 2022: −10.6% | 2022: −5.6% |
| 1-year return | +7.2% | +9.9% |
| 5 years, a year | +8.6% | +11.5% |
| 10 years, a year | — | +13.2% |
| Trading currency | USD | USD |
First nine rows: the same 76 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: XLF vs XLI
Returns by calendar year
| Year | XLF | XLI |
|---|---|---|
| 2025 | +14.9% | +19.4% |
| 2024 | +30.6% | +17.3% |
| 2023 | +12.0% | +18.1% |
| 2022 | −10.6% | −5.6% |
| 2021 | +34.8% | +21.1% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, XLF or XLI?
From July 2020 to October 2026, XLF returned +16.9% a year and XLI +16.7% a year, with dividends reinvested. Over rolling 3-year periods XLF did better in 24% of cases. Past returns do not predict future returns.
Which is riskier, XLF or XLI?
Over the same months annual volatility was 18.6% for XLF and 18.6% for XLI; the deepest fall from a month-end high was 23.1% and 20.7%, and the worst single month −10.9% and −10.4%.
How correlated are XLF and XLI?
The correlation of their monthly returns was 0.78: they usually moved together. Combining them has historically given some diversification.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.