# XLC ETF vs the S&P 500: Returns, Risk and Crash History

> State Street Communication Services Select Sector SPDR ETF (market value $21.8 billion): how it compared with the S&P 500, how it behaved in every crash since 2008, its risk‑adjusted returns. Returns to Oct 30, 2026.

Source: https://www.exent.ai/etfs/xlc · Reviewed by David, Senior Analyst, Exent · Published Oct 31, 2026 · Updated Nov 1, 2026

## Key takeaways

- XLC returned +31.2% over the 5 years to Oct 30, 2026 versus +75.9% for the S&P 500: it lagged the index.
- Its 5-year Sharpe ratio was 0.19 against 0.58 for the S&P 500.
- Its deepest crisis drawdown was −39.1% in the 2022 inflation bear market (S&P 500: −25.4%).
- Five‑year volatility was 20.6% and beta 1.01.

## Did XLC beat the S&P 500?

Over the 5 years to Oct 30, 2026, State Street Communication Services Select Sector SPDR ETF (XLC) returned **+31.2%** including dividends, versus **+75.9%** for the S&P 500 (SPY). It lagged the index by 44.7 percentage points, or +5.6% a year against +12.0%.

| Period | XLC | S&P 500 | XLC per year | S&P 500 per year | Result |
| --- | --- | --- | --- | --- | --- |
| 1 year | −11.9% | +12.0% | −11.9% | +12.0% | Lagged |
| 3 years | +59.8% | +87.4% | +16.9% | +23.3% | Lagged |
| 5 years | +31.2% | +75.9% | +5.6% | +12.0% | Lagged |

Total return with dividends reinvested, from month-end prices to Oct 30, 2026. Beating the index on raw return is only half the story: the next section adjusts for the risk taken. See also [how to beat the S&P 500](https://www.exent.ai/beat-the-market).

## XLC returns by year vs the S&P 500

XLC beat the S&P 500 in 4 of the 7 full calendar years shown.

| Year | XLC | S&P 500 | Difference |
| --- | --- | --- | --- |
| 2026 (to Oct 30, 2026) | −14.4% | +11.7% | −26.1% |
| 2025 | +23.1% | +17.7% | +5.4% |
| 2024 | +34.7% | +24.9% | +9.8% |
| 2023 | +52.8% | +26.2% | +26.6% |
| 2022 | −37.6% | −18.2% | −19.4% |
| 2021 | +16.0% | +28.7% | −12.7% |
| 2020 | +26.9% | +18.3% | +8.6% |
| 2019 | +31.1% | +31.2% | −0.1% |

## XLC risk-adjusted returns: Sharpe, Sortino and volatility

Over 5 years, XLC had a Sharpe ratio of **0.19** against 0.58 for the S&P 500, so it earned less return per unit of risk than the index. Its annualized volatility was 19.1% and its beta 1.01: it tended to move about 1.0× as much as the market.

| Metric | XLC | S&P 500 |
| --- | --- | --- |
| Annual return | +5.6% | +12.0% |
| Volatility (annualized) | 19.1% | 15.5% |
| Sharpe ratio | 0.19 | 0.58 |
| Sortino ratio | 0.26 | 0.91 |
| Max drawdown (month-end) | −39.8% | −23.9% |
| Beta to the S&P 500 | 1.01 | 1.00 |

[Sharpe](https://www.exent.ai/learn/sharpe-ratio) divides return above cash by total volatility; [Sortino](https://www.exent.ai/learn/sortino-ratio) counts only downside volatility. Both use monthly returns and the 1–3 month T‑bill ETF (BIL) as the risk‑free rate.

## How XLC behaved in past crashes

XLC’s deepest fall in the crises below was **−39.1%** in the 2022 inflation bear market, against −25.4% for the S&P 500. The last column turns that into money: what a $100,000 position would have lost from peak to trough.

| Crisis | XLC | S&P 500 | Loss on $100,000 |
| --- | --- | --- | --- |
| COVID crash (Feb–Mar 2020) | −30.1% | −34.1% | −$30,150 |
| 2022 inflation bear market | −39.1% | −25.4% | −$39,110 |
| 2025 tariff selloff | −17.9% | −19.0% | −$17,920 |

| Window | XLC max drawdown |
| --- | --- |
| Last 1 year | −10.6% |
| Last 3 years | −18.0% |
| Last 5 years | −46.7% |
| Last 10 years | −47.2% |

Peak‑to‑trough declines from daily prices inside each crisis window. A crash replay does not predict the next crisis; it shows how much room a holding needs. Run the same replay on a whole portfolio with the [crash test](https://www.exent.ai/tools/crash-test).

## What moves with XLC, and what doesn’t

Correlation runs from −1 (moves opposite) to +1 (moves in lockstep). Over the last 60 months of monthly returns, XLC’s correlation with the S&P 500 was **0.82**, with the Nasdaq‑100 0.80, with long Treasuries (TLT) 0.49 and with gold (GLD) 0.36.

Adding a 5% XLC position to an S&P 500 portfolio would have moved its 5‑year volatility from 15.5% to 15.5%.

| Least correlated large caps | Correlation | Most correlated large caps | Correlation |
| --- | --- | --- | --- |
|  | −0.09 |  | 0.68 |
|  | −0.04 |  | 0.68 |
|  | −0.01 |  | 0.66 |
|  | 0.00 |  | 0.66 |
|  | 0.01 |  | 0.63 |

Holdings that are highly correlated behave like one position in a selloff. See [how to find hidden overlap](https://www.exent.ai/resources/is-my-portfolio-diversified).

## What does XLC hold?

As of Oct 20, 2026, XLC held **22 positions**; its 10 largest made up **76.3%** of the fund. The largest was META (Meta Platforms, Inc.) at 22.98%.

| Holding | Name | Weight |
| --- | --- | --- |
| [META](https://www.exent.ai/stocks/meta) | Meta Platforms, Inc. | 22.98% |
| [GOOGL](https://www.exent.ai/stocks/googl) | Alphabet Inc. | 12.41% |
| [GOOG](https://www.exent.ai/stocks/googl) | Alphabet Inc Cl C | 9.93% |
| [DIS](https://www.exent.ai/stocks/dis) | The Walt Disney Company | 4.99% |
| [TTWO](https://www.exent.ai/stocks/ttwo) | Take-Two Interactive Software, Inc. | 4.61% |
| [T](https://www.exent.ai/stocks/t) | AT&T Inc. | 4.38% |
| [NFLX](https://www.exent.ai/stocks/nflx) | Netflix, Inc. | 4.36% |
| [CMCSA](https://www.exent.ai/stocks/cmcsa) | Comcast Corporation | 4.23% |
| [VZ](https://www.exent.ai/stocks/vz) | Verizon Communications Inc. | 4.21% |
| [APP](https://www.exent.ai/stocks/app) | AppLovin Corporation | 4.19% |

From the fund’s latest published holdings. Overlap by weight adds up, for every stock both funds hold, the smaller of its two weights: 100% would mean the same portfolio. [How much do VOO, QQQ and VTI overlap?](https://www.exent.ai/resources/etf-overlap-voo-qqq-vti)

## The right benchmark for XLC

Exent matches every holding to the index with the most similar risk. For XLC that is **QQQ** (the Nasdaq‑100). Comparing a holding with an index that carries very different risk makes good results look bad and risky ones look clever. Read [why the S&P 500 is the wrong benchmark for most portfolios](https://www.exent.ai/resources/why-the-sp-500-is-the-wrong-benchmark).

## Other popular ETFs

| Ticker | Name | 5‑year return | Volatility (5y) |
| --- | --- | --- | --- |
|  | Vanguard Total Stock Market Index Fund ETF Shares | +68.1% | 17.4% |
|  | Vanguard S&P 500 ETF | +76.5% | 16.8% |
|  | iShares Core S&P 500 ETF | +76.5% | 16.9% |
|  | State Street SPDR S&P 500 ETF Trust | +75.9% | 17.0% |
|  | SPDR S&P 500 ETF Trust | +78.6% | 20.8% |
|  | Vanguard Total Intl Stock Idx Fund | +47.5% | 16.0% |
|  | Invesco QQQ Trust | +84.3% | 22.3% |
|  | Vanguard Growth Index Fund ETF Shares | +66.9% | 22.2% |

## Data and methodology

Returns are total returns from month‑end adjusted closing prices (dividends reinvested) through Oct 30, 2026. Crisis drawdowns and trailing maximum drawdowns use daily prices. Analyst coverage counts ratings published in the last 12 months, shown with a 30‑day delay. Full method: [Exent methodology](https://www.exent.ai/methodology).

Holdings and weights are the fund’s latest published holdings; ETF overlap compares those holdings stock by stock.

Past performance does not guarantee future results. Historical figures are calculated by Exent from market data and are for education only; they are not investment advice or a recommendation to buy or sell any security.

## See what XLC does to your own portfolio

1. Upload a screenshot of your holdings (or a CSV, Excel, PDF or Google Sheet); no brokerage login.
2. Exent replays your whole portfolio, XLC included, through the 2008, 2018, 2020, 2022 and 2025 selloffs and shows which holdings drive the losses.
3. It finds holdings that move together with XLC and compares your portfolio with a risk‑matched benchmark, Sharpe and Sortino included.
4. Use the what‑if simulator to change weights and see the effect before you trade.

Exent is our product: [Exent portfolio check](https://www.exent.ai/portfolio)

## Frequently asked questions

### Did XLC beat the S&P 500 over the last 5 years?

No. XLC returned +31.2% (+5.6% a year) over the 5 years to Oct 30, 2026, versus +75.9% (+12.0% a year) for the S&P 500, including dividends.

### How much did XLC fall in the COVID crash?

XLC fell −30.1% from peak to trough during the covid crash (feb–mar 2020), versus −34.1% for the S&P 500.

### How much did XLC fall in the 2022 bear market?

XLC fell −39.1% from peak to trough during the 2022 inflation bear market, versus −25.4% for the S&P 500.

### What is XLC’s Sharpe ratio?

Over the 5 years to Oct 30, 2026, XLC’s Sharpe ratio was 0.19 and its Sortino ratio 0.26, versus 0.58 and 0.91 for the S&P 500.

### Is XLC a volatile ETF?

XLC’s 5‑year annualized volatility was 20.6%, higher than the S&P 500’s 17.0%, with a beta of 1.01.

### What is least correlated with XLC?

Among large US stocks, the lowest correlations with XLC over the last 60 months were LMT (−0.09), REGN (−0.04), MRK (−0.01). Its correlation with long Treasuries (TLT) was 0.49 and with gold (GLD) 0.36.

---

Educational content, not investment advice. Past performance does not guarantee future results.