At a glance
XLI charges 0.08% a year, below the 0.34% average of the 8 funds most like it (the cheapest of 9). It has $33.96B in assets, the largest of that group; it paid 1.12% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +9.4% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +21.3% a year. At its worst it fell 41.6% in the 2020 crash (S&P 500: 33.7%) and 21.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 9 months after the lows. Its ten largest positions make up 41.4% of the fund, out of 81 in all.
The short version
The Industrial Select Sector SPDR Fund (XLI) is a State Street index fund that holds the industrial companies in the S&P 500, such as Caterpillar, General Electric and GE Vernova. It costs 0.08% a year, about the same as Fidelity's and Vanguard's industrial funds and far below the 0.34% average for similar funds. The trade-off is concentration: as of June 30, 2026, its 10 largest holdings made up 41% of assets.
Price history
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XLI +9.4% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLI official prospectus, to Dec 31, 2025 | — | +19.31% | — | +13.55% | +13.31% | — |
| XLI price data to Oct 30, 2026 | +8.8% | +9.4% | +21.3% | +11.5% | +13.3% | +9.2% |
- Over the year to Oct 30, 2026, XLI returned +9.4%, 2nd of 9 among similar funds.
- Its 5-year annualized return was +11.5% and its 10-year +13.3%.
- In the 2020 COVID crash it fell 41.6% and regained its old high 7.6 months after the low.
- Its worst full calendar year was 2008 (-38.7%); its best was 2013 (+40.6%).
- The deepest fall in its price history was 62.3% (Oct 9, 2007 to Mar 9, 2009), recovered by Apr 29, 2011.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.8% | — |
| 2025 | +19.3% | +19.31% |
| 2024 | +17.3% | +17.36% |
| 2023 | +18.1% | +18.05% |
| 2022 | -5.6% | -5.54% |
| 2021 | +21.1% | +20.93% |
| 2020 | +11.0% | +10.83% |
| 2019 | +29.1% | +29.12% |
| 2018 | -13.3% | -13.10% |
| 2017 | +24.0% | +23.84% |
| 2016 | +20.0% | +19.95% |
| 2015 | -4.3% | — |
| 2014 | +10.4% | — |
| 2013 | +40.6% | — |
| 2012 | +14.9% | — |
| 2011 | -1.1% | — |
| 2010 | +27.8% | — |
| 2009 | +22.1% | — |
| 2008 | -38.7% | — |
| 2007 | +13.5% | — |
| 2006 | +13.5% | — |
| 2005 | +2.7% | — |
| 2004 | +17.8% | — |
| 2003 | +31.8% | — |
| 2002 | -24.6% | — |
| 2001 | -10.2% | — |
| 2000 | +6.7% | — |
| 1999 | +22.2% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 62.3% over that stretch · deepest drop along the way 62.3%, back to its old high 25.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.6% over that stretch · deepest drop along the way 41.6%, back to its old high 7.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.2% over that stretch · deepest drop along the way 21.7%, back to its old high 8.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.3400 | |
| 2025 | $1.9900 | +4.7% |
| 2024 | $1.9000 | +2.7% |
| 2023 | $1.8500 | +14.9% |
| 2022 | $1.6100 | +22.9% |
| 2021 | $1.3100 | -5.8% |
| 2020 | $1.3900 | -12.0% |
| 2019 | $1.5800 | +14.5% |
| 2018 | $1.3800 | +3.0% |
| 2017 | $1.3400 | +4.7% |
| 2016 | $1.2800 | +12.3% |
| 2015 | $1.1400 | +8.6% |
| 2014 | $1.0500 | +19.3% |
| 2013 | $0.8800 | +2.2% |
| 2012 | $0.8610 | +18.3% |
| 2011 | $0.7280 | +24.4% |
| 2010 | $0.5850 | -9.4% |
| 2009 | $0.6460 | -10.9% |
| 2008 | $0.7250 | +27.9% |
| 2007 | $0.5670 | -10.3% |
| 2006 | $0.6320 | +29.0% |
| 2005 | $0.4900 | +21.3% |
| 2004 | $0.4040 | +17.8% |
| 2003 | $0.3430 | +3.6% |
| 2002 | $0.3310 | -2.7% |
| 2001 | $0.3403 | +2.8% |
| 2000 | $0.3310 | -13.0% |
| 1999 | $0.3804 |
What's inside
As of Jun 30, 2026, the fund held 81 securities; the ten largest made up 41.37% of assets.
| Holding | Weight | |
|---|---|---|
| Caterpillar Inc | 8.51% | |
| General Electric Co | 6.77% | |
| GE Vernova Inc | 5.48% | |
| RTX Corp | 4.43% | |
| Boeing Co | 2.96% | |
| Eaton Corp PLC | 2.87% | |
| Union Pacific Corp | 2.80% | |
| Deere & Co | 2.77% | |
| Uber Technologies Inc | 2.55% | |
| Vertiv Holdings Co | 2.23% | |
| Parker-Hannifin Corp | 2.14% | |
| Trane Technologies PLC | 1.88% | |
| Quanta Services Inc | 1.88% | |
| Howmet Aerospace Inc | 1.87% | |
| Lockheed Martin Corp | 1.79% |
By country
United States 93.18%Ireland 6.73%By asset type
Stocks 99.91%By sector
Sectors of the companies held, for the 82.2% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.50B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.92%, -0.82%, +7.30%.
How it works
XLI tracks the Industrial Select Sector Index, one of eleven Select Sector indexes calculated by S&P Dow Jones Indices. A company qualifies only if it is in the S&P 500 and the Global Industry Classification Standard (GICS), a common system for sorting companies by business, labels it industrial. That spans aerospace and defense, machinery, electrical equipment, ground transportation, air freight, airlines, building products, construction and engineering, and commercial and professional services. As of November 30, 2025, the index held 79 stocks.
Stocks are weighted by market value (share price times shares outstanding), so the biggest companies get the biggest slices. S&P can trim any single stock that grows too large so the fund stays within diversification limits in the federal tax code. Even so, the fund is classed as "non-diversified," so a few stocks can sway its value. As of June 30, 2026, Caterpillar was 8.5% of assets, General Electric 6.8% and GE Vernova 5.5%; the top 10 made up 41%.
The fund uses replication, meaning it owns substantially all the index's stocks in about the same proportions, with at least 95% of assets in them. Small amounts can sit in cash or money market funds: cash was 0.07% of assets as of June 30, 2026. Turnover, the share of the portfolio replaced in a year, was 3%.
What it really costs
- XLI charges 0.08% a year, versus an average of 0.34% for the similar funds below (1st of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLI | $8 | $26 | $45 | $103 |
In a retirement portfolio
XLI holds one sector of the US stock market and lost 62.3% in the 2008 financial crisis, so it fits better as a smaller add-on than as a foundation.
XLI could add a focused stake in US industrial companies alongside broader funds. Its income is modest: the yield over the past 12 months was 1.11% as of October 27, 2026, paid quarterly. It fell 62.3% in the 2008 financial crisis and did not regain its peak until April 2011, about 26 months after the low. It lost 41.6% in the 2020 COVID crash, recovering by November 2020, and 21.7% in 2022, recovering by June 2023. Its worst calendar year was 2008, at -38.7%. Someone withdrawing money in a year like that could have to cash out shares at low prices.
Costs are low: 0.08% a year, or $103 over 10 years on a $10,000 investment in the SEC's standard example, which assumes a 5% yearly return. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking US industrial stocks such as Caterpillar, General Electric and RTX for 0.08% a year, about the same as Fidelity's and Vanguard's industrial funds.
- Those preferring established large companies: every stock must be an S&P 500 member; the fund held 81 companies as of June 30, 2026.
- Investors adding a smaller satellite position to a broad stock core who can tolerate drops like its 41.6% fall in early 2020.
Look elsewhere if
- Income seekers: its yield was 1.11% over the 12 months to October 27, 2026, paid quarterly.
- Anyone wanting broad diversification: it is non-diversified, with 41% in its top 10 holdings and 8.5% in Caterpillar alone as of June 30, 2026.
- Investors wanting industrial companies worldwide: it holds only S&P 500 members; iShares Global Industrials ETF (EXI) is one global option, at 0.41% a year.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLI this fund | — | 0.08% | $33.96B | +9.4% | +21.3% |
| FIDU Fidelity MSCI Industrial Index ETF | 78% | 0.084% | $2.30B | +7.5% | +21.8% |
| VIS Vanguard Industrials ETF | 77% | 0.09% | $8.56B | +7.5% | +21.9% |
| IYJ iShares U.S. Industrials ETF | 59% | 0.39% | $1.94B | +6.4% | +19.2% |
| EXI iShares Global Industrials ETF | 56% | 0.41% | $1.44B | +8.2% | +22.5% |
| MADE iShares U.S. Manufacturing ETF | 41% | 0.4% | $62.7M | +11.3% | — |
| PPA Invesco Aerospace & Defense ETF | 30% | 0.57% | $8.26B | -1.3% | +26.1% |
| NATO Themes Transatlantic Defense ETF | 26% | 0.35% | $100.7M | -7.3% | — |
Questions investors ask
What stocks are in XLI?
XLI owns the industrial companies in the S&P 500, following the Industrial Select Sector Index. As of June 30, 2026, its largest holdings were Caterpillar (8.5%), General Electric (6.8%), GE Vernova (5.5%), RTX (4.4%) and Boeing (3.0%), followed by Eaton, Union Pacific, Deere, Uber Technologies and Vertiv. Those top 10 made up about 41% of assets. The fund held 81 companies in all, with about $34 billion in net assets.
What's the difference between XLI and FIDU?
Mainly the index and the fund size; costs are nearly identical. XLI follows S&P's Industrial Select Sector Index, which only includes S&P 500 members, while FIDU, the Fidelity MSCI Industrial Index ETF, follows an MSCI index. XLI charges 0.08% a year and FIDU 0.084%. About 78% of their holdings overlap, based on their latest holdings reports. XLI is far larger: roughly $34 billion versus $2.3 billion in mid-2026. Over the year to October 27, 2026, XLI returned 9% and FIDU 7.5%.
Does XLI pay dividends?
Yes. XLI pays dividends quarterly, passing along the dividends paid by the companies it holds. Over the 12 months to October 27, 2026, it paid $1.87 per share, a yield (yearly income as a share of the price) of 1.11%. That is a modest income stream. The fund is not built for income: its index weights companies by market value, not by how much they pay out.
Is XLI good for retirement?
XLI can play a supporting role in a retirement portfolio, but it is a one-sector fund with big swings. It fell 62.3% in the 2008 financial crisis and 41.6% in the 2020 COVID crash, and its worst calendar year was 2008, at -38.7%. In its favor, it costs 0.08% a year and averaged 13.31% a year over the 10 years ended December 31, 2025, according to its prospectus. Its yield, 1.11% as of October 27, 2026, is modest.
What is XLI's average annual return?
XLI returned an average of 13.31% a year over the 10 years ended December 31, 2025, and 13.55% a year over five years, according to its prospectus. Its 2025 return was 19.31%. The path was uneven: it lost 13.1% in 2018 and 5.54% in 2022 but gained 29.12% in 2019. Its weakest quarter was a 27.09% drop in the first quarter of 2020. Based on share prices, it was up 9.1% in 2026 through October 27.