XLI vs XLE: Head-to-Head Comparison
XLI vs XLE: Industrial Select Sector SPDR Fund has an expense ratio of 0.09% while Energy Select Sector SPDR Fund charges 0.09%. XLI holds 78 securities vs XLE's 23. 5-year returns: 11.80% vs 14.20%.
Last updated: April 2026
Sector
Quick Verdict
XLI edges out XLE with a stronger Beginner Suitability Score (8 vs 7.5). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | XLI | XLE |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| AUM | $19.0B | $35.0B |
| Dividend Yield | 1.40% | 3.30% |
| Holdings | 78 | 23 |
| 1-Year Return | 21.50% | 9.50% |
| 5-Year Return (Ann.) | 11.80% | 14.20% |
| 10-Year Return (Ann.) | 10.80% | 5.50% |
| Beta | 1.05 | 1.12 |
| P/E Ratio | 23.8 | 13.5 |
XLI 5-year annualized return is 11.80% compared to XLE's 14.20%. Over 10 years, XLI returned 10.80% vs XLE's 5.50%.
View data table
| Period | XLI Return | XLE Return |
|---|---|---|
| YTD | 2.40% | 1.80% |
| 1 Year | 21.50% | 9.50% |
| 3 Year | 10.50% | 18.50% |
| 5 Year | 11.80% | 14.20% |
| 10 Year | 10.80% | 5.50% |
Key Differences Between XLI and XLE
XLI (Industrial Select Sector SPDR Fund) is a industrials sector fund managed by State Street Global Advisors. XLI provides exposure to the industrial sector of the S&P 500, including aerospace and defense, machinery, railroads, construction, and business services companies. Industrials are considered cyclical because their profits are closely tied to economic growth and infrastructure spending. Beginners should know that XLI tends to outperform during economic expansions but can underperform when growth slows.
XLE (Energy Select Sector SPDR Fund) is a energy sector fund managed by State Street Global Advisors. XLE holds the energy companies from the S&P 500, including major oil and gas producers, refiners, and energy equipment providers. It is the most popular way to get targeted exposure to the traditional energy sector. Beginners should understand that XLE is heavily tied to oil and gas prices, making it a cyclical investment that can deliver strong returns when energy prices rise but suffer during downturns.
The most notable differences are in fees (0.09% vs 0.09%), number of holdings (78 vs 23), and 5-year returns (11.80% vs 14.20%).
XLI vs XLE multi-factor comparison: XLI has a 0.09% expense ratio, 11.80% 5-year return, 78 holdings, 1.05 beta, and 1.40% yield. XLE has 0.09% expense ratio, 14.20% 5-year return, 23 holdings, 1.12 beta, and 3.30% yield.
View data table
| Metric | XLI | XLE |
|---|---|---|
| Expense Ratio | 0.09% | 0.09% |
| 5-Year Return | 11.80% | 14.20% |
| Holdings | 78 | 23 |
| Beta | 1.05 | 1.12 |
| Dividend Yield | 1.40% | 3.30% |
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Holdings Overlap Analysis
0%
Holdings Overlap
XLI and XLE share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
XLI and XLE share 0% of their top holdings (low overlap). XLI has 78 total holdings and XLE has 23.
View data table
| Metric | XLI | XLE |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 78 | 23 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
XLI
Fee cost: $771
XLE
Fee cost: $771
Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.
On a $10,000 investment over 20 years at 8% return, XLI (0.09% fee) grows to $45,839 while XLE (0.09% fee) grows to $45,839. The fee difference costs $0.
View data table
| Year | XLI Value | XLE Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,632 | $14,632 |
| 10 | $21,410 | $21,410 |
| 15 | $31,327 | $31,327 |
| 20 | $45,839 | $45,839 |
Which One Should a Beginner Choose?
Choose XLI if: You want investors who want cyclical exposure that benefits from economic growth and infrastructure spending, those bullish on u.s. manufacturing reshoring and defense spending trends, tactical investors who rotate into industrials during early-to-mid economic expansion phases. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Choose XLE if: You want investors who want to overweight energy based on their outlook for oil and gas prices, income seekers attracted to the high dividends paid by profitable energy companies, tactical investors using energy as an inflation hedge during rising commodity price environments. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Can You Own Both XLI and XLE?
Absolutely! With only 0% overlap, XLI and XLE complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy XLI or XLE?▾
XLI edges out XLE with a stronger Beginner Suitability Score (8 vs 7.5). It offers better overall characteristics for new investors. However, both are solid options. XLI is best for investors who want investors who want cyclical exposure that benefits from economic growth and infrastructure spending, while XLE is better suited for investors who want to overweight energy based on their outlook for oil and gas prices.
What is the difference between XLI and XLE?▾
XLI (Industrial Select Sector SPDR Fund) tracks industrials sector investments with 78 holdings and a 0.09% expense ratio. XLE (Energy Select Sector SPDR Fund) focuses on energy sector with 23 holdings at 0.09%. Their top holdings overlap by 0%.
Can I own both XLI and XLE?▾
Yes! With only 0% holdings overlap, XLI and XLE complement each other well. Owning both gives you broader diversification.