XLE vs XLI: Performance, Holdings, Fees & Risk
XLE and XLI are ETFs, but they can differ materially in exposure, yield, fees and risk. XLE is State Street Energy Select Sector SPDR ETF, while XLI is State Street Industrial Select Sector SPDR ETF. XLI is broader by holdings count, with 86 positions versus 24 for XLE. XLE is more concentrated at the top, based on top-10 holdings weight. Current AlgovestIQ evidence has XLE ahead on AIQ Score, 65 versus 54.
What is the main difference between XLE and XLI?
XLI holds 86 positions to XLE's 24, and 0% of their weight is in the same securities.
| Metric | XLE | XLI |
|---|---|---|
| Fund | ||
| Expense ratio | 0.08% | 0.08% |
| Holdings | 24 | 86 |
| Top-10 concentration | 74% | 40.1% |
| Distribution yieldTrailing 12 months | 2.24% | 1.13% |
| Average volume | 30,850,634 | 7,083,898 |
| Performance | ||
| 1Y return | +59% | +10% |
| YTD return | +51.2% | +7.5% |
| 5Y annualized returnTotal return, distributions reinvested | +22.8% | +11.4% |
| Risk | ||
| Annualized volatility | 22.1% | 17.1% |
| Max drawdown (1Y) | -15.6% | -12.5% |
| Max drawdown (5Y)Total return, distributions reinvested | -26.1% | -21.7% |
| Beta | -0.42 | 0.93 |
| Sharpe ratio | 2.02 | 0.41 |
| Sortino ratio | 3.16 | 0.65 |
| AlgovestIQ | ||
| AIQ Score | 65/100 | 54/100 |
| AIQ Edge Score | 9/10 | 5/10 |
| Momentum | 80/100 | 41/100 |
| Risk Resilience | 41/100 | 81/100 |
AlgovestIQ AIQ Comparison
State Street Energy Select Sector SPDR ETF vs State Street Industrial Select Sector SPDR ETF
XLE leads
XLE leads by 11 AIQ points, primarily on Momentum and Value, and the lead has widened from 1 points over 30 sessions.
Competitive: 3 of 4 evidence groups support XLE, its lead is widening, and its current signal state is conflicted.
State Street Energy Select Sector SPDR ETF
State Street Industrial Select Sector SPDR ETF
The Algovestiq AIQ Score currently favors XLE over XLI, 65 versus 54 as of Oct 21, 2026. XLE's advantage is driven primarily by stronger momentum and value, while XLI holds the stronger risk resilience profile. XLE also shows the stronger technical structure relative to its 50-day moving average. 3 of 4 covered evidence groups favor XLE today, and the comparison is rated Competitive on stability: the leader is throwing conflicting signals. XLE lead: Strengthening — the AIQ differential moved from 1 to 11 points over 30 sessions.
Compare State Street Energy Select Sector SPDR ETF and State Street Industrial Select Sector SPDR ETF across performance, expense ratio, dividend yield, drawdown, volatility and the Algovestiq AIQ Score.
XLE vs XLI: which fits what
Each row is settled by a single measure. Where the gap is too small to matter it reads Similar, and no row decides the comparison as a whole.
| If you want | XLE | XLI | Fits |
|---|---|---|---|
| Lower costExpense ratio | 0.08% | 0.08% | Similar |
| Broader diversificationNumber of holdings | 24 | 86 | XLI |
| Lower concentrationWeight of the 10 largest holdings | 74% | 40.1% | XLI |
| Higher incomeTrailing 12-month distribution yield | 2.24% | 1.13% | XLE |
| Smaller drawdownsMax drawdown, 5 years | -26.1% | -21.7% | XLI |
| Lower volatilityAnnualized volatility, 1 year | 22.1% | 17.1% | XLI |
Similar means the gap is within 0.01 percentage points of expense ratio, 25% more holdings, 3 points of top-10 weight, 0.2 points of yield, 2 points of drawdown or 1 point of volatility. Past drawdowns and volatility describe the funds’ history, not their future.
Performance over time
Total return with distributions reinvested, from daily closes for both ETFs.
Total return comparison
Growth of $10,000, distributions reinvested
Split-adjusted closes; each distribution is reinvested at the close on its ex-dividend date. Taxes and trading costs are not modeled.
Compare XLE and XLI against another ticker
Open a multi-ticker workspace without changing this focused pair page.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Risk Resilience41 vs 81XLI +40
- Momentum80 vs 41XLE +39
- Value54 vs 36XLE +18
- Quality75 vs 68XLE +7
3 of 4 evidence groups favor XLE. XLE’s edge is concentrated in momentum and value; XLI keeps a meaningful risk resilience edge.
What changed since the last close
Latest scored session 2026-10-20, compared against the prior scored session 2026-10-19.
Largest factor move: Value +1, not enough on its own to move the overall score.
No signal started or stopped since the prior session; its 7 active signals are unchanged.
Largest factor move: Momentum +5
No signal started or stopped since the prior session; its 4 active signals are unchanged.
XLE's lead narrowed by 2 AIQ points in the latest session.
Deeper signal detail for each name lives on its own signals page — XLE and XLI both carry a full feed there.
The central trade-off
XLE (State Street Energy Select Sector SPDR ETF): the stronger current systematic profile, led by momentum and value.
XLI (State Street Industrial Select Sector SPDR ETF): the counter-case, on risk resilience.
Fund facts, side by side
Two funds tracking overlapping universes are separated by cost and risk far more than by holdings. Those lead here.
| Measure | XLE | XLI | Why it matters |
|---|---|---|---|
| Expense ratio | 0.08% | 0.08% | Lower is better — it compounds against you every year you hold. |
| Holdings | 24 | 86 | More holdings means broader diversification, not better returns. |
| Average volume | 30,850,634 | 7,083,898 | Liquidity — matters most if you trade size. |
| Annualized volatility | 22.1% | 17.1% | Lower is a steadier ride for the same exposure. |
| Max drawdown (1Y) | -15.6% | -12.5% | The worst peak-to-trough loss over the past year. |
| Sharpe ratio | 2.02 | 0.41 | Return per unit of risk. Higher is better. |
| Beta | -0.42 | 0.93 | Sensitivity to the broad market. Neither direction is better — it depends on the role in your portfolio. |
Where the exposure actually sits
Sector exposure for each fund, ordered by the size of the difference.
How much of the same holdings they own
XLE and XLI share 0% of their weighted exposure across 0 common holdings.
22 holdings are unique to XLE, and 84 holdings are unique to XLI. Owning both is genuinely additive — most of the capital sits in different securities.
XLE is the more concentrated of the two: its ten largest positions are 74.01% of the fund, against 40.15% for XLI (24 holdings vs 86). Concentration cuts both ways — it is what drives outperformance when the top names work, and what makes the drawdown deeper when they do not.
What XLE adds that XLI doesn’t
| Holding | XLE | XLI |
|---|---|---|
| XOMEXXONMOBIL HOLDINGS CORP | 20.13% | Not held |
| CVXCHEVRON CORP | 15.18% | Not held |
| COPCONOCOPHILLIPS | 6.36% | Not held |
| MPCMARATHON PETROLEUM CORP | 5.63% | Not held |
| PSXPHILLIPS 66 | 5.52% | Not held |
| VLOVALERO ENERGY CORP | 5.38% | Not held |
What XLI adds that XLE doesn’t
| Holding | XLI | XLE |
|---|---|---|
| CATCATERPILLAR INC | 6.92% | Not held |
| GEGENERAL ELECTRIC | 6.32% | Not held |
| RTXRTX CORP | 4.98% | Not held |
| GEVGE VERNOVA INC | 4.64% | Not held |
| DEDEERE + CO | 3.18% | Not held |
| UNPUNION PACIFIC CORP | 3.17% | Not held |
Each list is a fund’s largest positions by weight that the other fund does not hold, or holds at less than half the weight.
XLE vs XLI: five-year payout growth
XLI grew its split-adjusted payout faster over 2020-2025 — 7.79% a year against XLE's 6.57%. XLE: The 2020 payout was 47.2% below 2019, so the growth rate measures a recovery from a weak starting year. XLI: The 2020 payout was 13.3% below 2019, so the growth rate measures a recovery from a weak starting year.
| Dividend metric | XLE | XLI |
|---|---|---|
| 5Y payout CAGR | 6.57% | 7.79% |
| 2020 annual payout | $1.066 | $1.373 |
| 2025 annual payout | $1.465 | $1.998 |
| Calendar-year declines | 2 | 1 |
| Peer rank | #79 of 138 | #72 of 138 |
Split-adjusted annual distributions, 2020–2025. Research as of Sep 19, 2026. Yield and expense ratio above are current values, not part of this window.
AIQ Agreement Matrix
3 of 4 covered evidence groups favor XLE. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | XLE | 65 vs 54 |
| Fundamentals | Not covered | Not covered |
| Valuation | XLE | Value 54 vs 36 |
| Technicals | XLE | Price vs 50-day 6.7% vs -2.9%; vs 200-day 17.5% vs -3.6% |
| Risk Resilience | XLI | Risk Resilience 41 vs 81 |
| Analyst expectations | Not covered | Not covered |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of XLE and XLI and are excluded from the count.
AIQ Decision Stability
The two are close enough that your objective, not the score, should decide.
- The AIQ gap is moderate at 11 points.
- The leader's advantage has been widening. (supports the conclusion holding)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on XLE.
How the comparison changed
120 daily snapshots · Jun 21 – Oct 20XLE lead: Strengthening — the AIQ differential moved from 1 to 11 points over 30 sessions.
- Today
- XLE +11
- 65 vs 54
- 7 sessions ago
- XLE +13
- 65 vs 52
- 30 sessions ago
- XLE +1
- 53 vs 52
- 90 sessions ago
- XLE +3
- 64 vs 61
The lead changed hands once in this window, most recently on Aug 8 when XLI moved ahead of XLE.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
6 bullish / 1 bearish, conflicted
Only XLE
- Keltner Channel Breakout — bullish, volatility, short horizon
- RSI Overbought — bearish, momentum, short horizon
- EMA Ribbon Expansion Bullish — bullish, trend, medium horizon
- 52-Week High Proximity — bullish, risk, long horizon (0.0%)
- Uptrend Structure Active — bullish, trend, long horizon
2 bullish / 0 bearish / 2 neutral
Only XLI
- Bollinger Band Squeeze — neutral, volatility, short horizon
- ATR Contraction - Coiling — neutral, volatility, short horizon (1.50%)
Both carry 2 more signals that do not separate them: Golden Cross Active, MACD Bullish Crossover.
XLE leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Neither the price nor the AIQ Score moved enough in the latest session to confirm or contradict the other (price +0.28%, AIQ 0 points).
Price and the AIQ Score both moved up over the latest session (price +0.91%, AIQ +2 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1XLI closes the Momentum gap — currently 39 points behind, the largest single contributor to XLE's edge.
- 2XLI's Bollinger Band Squeeze turns directional — it is neutral today and would confirm a change in trend.
- 3XLE's conflicting signal state resolves bearish — it currently carries 6 bullish and 1 bearish rules at once.
- 4A regime shift changes factor weighting — Quality and Value carry the heaviest weights in the composite, so a rotation toward either would move the result most.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Performance
XLE leads 6 of 6 windows| Metric | XLE | XLI |
|---|---|---|
| 1 week (5 sessions) | 1.1% | -1.1% |
| 1 month (20 sessions) | 10% | -2% |
| 3 months (63 sessions) | 14.8% | -6.7% |
| 6 months (126 sessions) | 21.7% | -2.7% |
| Year to date | 51.2% | 7.5% |
| 1 year (252 sessions) | 59% | 10% |
Technicals
XLE has the stronger structure| Metric | XLE | XLI |
|---|---|---|
| RSI (14) | 80.5 | 49.4 |
| ADX (14) | 22.4 | 28 |
| Price vs 50-day | 6.7% | -2.9% |
| Price vs 200-day | 17.5% | -3.6% |
| Volatility (1M, annualized) | 19% | 13.2% |
Risk
XLI is the more resilient| Metric | XLE | XLI |
|---|---|---|
| Beta | -0.42 | 0.93 |
| Sharpe ratio | 2.02 | 0.41 |
| Sortino ratio | 3.16 | 0.65 |
| Max drawdown | -15.6% | -12.5% |
| Current drawdown | -0.4% | -10.6% |
| Annualized volatility | 22.1% | 17.1% |
| Value at risk (95%) | -2% | -1.6% |
Straight answers
Short answers to the questions fund investors ask about this pair, from the figures above.
What is the difference between XLE and XLI?
XLI holds 86 positions to XLE's 24, and 0% of their weight is in the same securities.
How much do XLE and XLI overlap?
XLE and XLI share 0% of their weighted exposure across 0 common holdings. 22 holdings are unique to XLE, and 84 holdings are unique to XLI. Owning both is genuinely additive — most of the capital sits in different securities.
Which ETF is more diversified, XLE or XLI?
XLI holds more positions: 86 versus 24 for XLE.
Which has the lower expense ratio?
Neither: both charge 0.08% a year.
Which ETF has the higher distribution yield?
XLE, with a trailing 12-month distribution yield of 2.24% against 1.13% for XLI.
Which ETF has been more volatile?
XLE has been more volatile over the past year, at 22.1% annualized against 17.1% for XLI.
Which ETF has had the smaller drawdown?
XLI fell less from peak to trough over the past five years: -21.7% against -26.1% for XLE.
Compare XLE and XLI with others
Continue your research
This page answers which of the two. These answer the questions on either side of it.
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality, Value, Momentum and Risk, each carrying a fixed weight. Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.