# XLI alternatives: 8 similar ETFs compared

> ETFs similar to XLI, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as XLI. Updated daily.

The ETFs most like XLI are VIS, SCHV and IWD. VIS holds US makers of machines and airplanes, railroads and other industrial companies, like XLI.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 8 funds can stand in for XLI: 1 of the same kind and 7 related funds.
- XLI charges 0.08% a year (about $8 on $10,000). The cheapest alternative here, VTV, charges 0.03%.
- VIS moved most like XLI: a daily correlation of 0.99 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## XLI alternatives at a glance

Each fund below can stand in for XLI, closest first. "Same kind" funds hold the same kind of stocks through a different index. "Related" funds make a different bet that often moves the same way.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **XLI** | This fund | 0.08% | $8 | Industrial Select Sector Index |
| [VIS](https://tactfolio.com/etf/VIS.md) | Same kind of fund | 0.09% | $9 | MSCI US Investable Market Industrials 25/50 Index |
| [SCHV](https://tactfolio.com/etf/SCHV.md) | Related fund | 0.04% | $4 | Dow Jones U.S. Large-Cap Value Total Stock Market Index |
| [IWD](https://tactfolio.com/etf/IWD.md) | Related fund | 0.18% | $18 | Russell 1000 Value Index |
| [VTV](https://tactfolio.com/etf/VTV.md) | Related fund | 0.03% | $3 | Morningstar US Large Cap Value Index |
| [SPYV](https://tactfolio.com/etf/SPYV.md) | Related fund | 0.04% | $4 | S&P 500 Value Index |
| [IVE](https://tactfolio.com/etf/IVE.md) | Related fund | 0.18% | $18 | S&P 500 Value Index |
| [VAW](https://tactfolio.com/etf/VAW.md) | Related fund | 0.09% | $9 | MSCI US Investable Market Materials 25/50 Index |
| [XLB](https://tactfolio.com/etf/XLB.md) | Related fund | 0.08% | $8 | Materials Select Sector Index |

Fees come from each fund company, checked on the dates shown on each fund's page.

## How XLI and its alternatives did over the same dates

Each row measures the alternative and XLI on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

| ETF | Moves with XLI | Per year | XLI per year | Worst drop | XLI worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [VIS](https://tactfolio.com/etf/VIS.md) | 0.99 | 10.5% | 10.5% | −63.5% | −62.3% | September 2004 |
| [SCHV](https://tactfolio.com/etf/SCHV.md) | 0.91 | 11.5% | 13.2% | −37.1% | −42.3% | December 2009 |
| [IWD](https://tactfolio.com/etf/IWD.md) | 0.90 | 8.3% | 8.8% | −60.1% | −62.3% | May 2000 |
| [VTV](https://tactfolio.com/etf/VTV.md) | 0.89 | 9.7% | 10.4% | −59.3% | −62.3% | January 2004 |
| [SPYV](https://tactfolio.com/etf/SPYV.md) | 0.87 | 7.9% | 8.7% | −58.5% | −62.3% | October 2000 |
| [IVE](https://tactfolio.com/etf/IVE.md) | 0.87 | 7.7% | 8.8% | −61.3% | −62.3% | May 2000 |
| [VAW](https://tactfolio.com/etf/VAW.md) | 0.84 | 8.9% | 10.4% | −62.2% | −62.3% | January 2004 |
| [XLB](https://tactfolio.com/etf/XLB.md) | 0.82 | 8.2% | 9.2% | −59.8% | −62.3% | December 1998 |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## Each XLI alternative, compared

### VIS: Vanguard Industrials ETF

VIS also holds US makers of machines and airplanes, railroads and other industrial companies. It tracks the MSCI US Investable Market Industrials 25/50 Index, while XLI tracks the Industrial Select Sector Index.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLI. It held 396 stocks, against 83 for XLI.

From September 2004 to October 2026, VIS returned about 10.5% a year and XLI returned about 10.5% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the [VIS fund page](https://tactfolio.com/etf/VIS.md) for its returns by year and worst drop.

### SCHV: Schwab U.S. Large-Cap Value ETF

SCHV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.04% a year, about $4 on $10,000, against $8 for XLI. It held 555 stocks, against 83 for XLI.

From December 2009 to October 2026, SCHV returned about 11.5% a year and XLI returned about 13.2% a year. Over about the last five years they moved together on most days (correlation 0.91).

Read the [SCHV fund page](https://tactfolio.com/etf/SCHV.md) for its returns by year and worst drop.

### IWD: iShares Russell 1000 Value ETF

IWD is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.18% a year, about $18 on $10,000, against $8 for XLI. It held 870 stocks, against 83 for XLI.

From May 2000 to October 2026, IWD returned about 8.3% a year and XLI returned about 8.8% a year. Over about the last five years they moved together on most days (correlation 0.90).

Read the [IWD fund page](https://tactfolio.com/etf/IWD.md) for its returns by year and worst drop.

### VTV: Vanguard Morningstar Value ETF

VTV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.03% a year, about $3 on $10,000, against $8 for XLI. It held 298 stocks, against 83 for XLI.

From January 2004 to October 2026, VTV returned about 9.7% a year and XLI returned about 10.4% a year. Over about the last five years they moved together on most days (correlation 0.89).

Read the [VTV fund page](https://tactfolio.com/etf/VTV.md) for its returns by year and worst drop.

### SPYV: State Street SPDR Portfolio S&P 500 Value ETF

SPYV is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.04% a year, about $4 on $10,000, against $8 for XLI. It held 435 stocks, against 83 for XLI.

From October 2000 to October 2026, SPYV returned about 7.9% a year and XLI returned about 8.7% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the [SPYV fund page](https://tactfolio.com/etf/SPYV.md) for its returns by year and worst drop.

### IVE: iShares S&P 500 Value ETF

IVE is a looser match. It holds large US companies that look cheap compared with their earnings and assets, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.18% a year, about $18 on $10,000, against $8 for XLI. It held 436 stocks, against 83 for XLI.

From May 2000 to October 2026, IVE returned about 7.7% a year and XLI returned about 8.8% a year. Over about the last five years they moved together on most days (correlation 0.87).

Read the [IVE fund page](https://tactfolio.com/etf/IVE.md) for its returns by year and worst drop.

### VAW: Vanguard Materials ETF

VAW is a looser match. It holds US makers of chemicals, metals, paper and packaging, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLI. It held 110 stocks, against 83 for XLI.

From January 2004 to October 2026, VAW returned about 8.9% a year and XLI returned about 10.4% a year. Over about the last five years they often moved together, but not always (correlation 0.84).

Read the [VAW fund page](https://tactfolio.com/etf/VAW.md) for its returns by year and worst drop.

### XLB: State Street Materials Select Sector SPDR ETF

XLB is a looser match. It holds US makers of chemicals, metals, paper and packaging, while XLI holds US makers of machines and airplanes, railroads and other industrial companies.

It charges 0.08% a year, about $8 on $10,000, against $8 for XLI. It held 24 stocks, against 83 for XLI.

From December 1998 to October 2026, XLB returned about 8.2% a year and XLI returned about 9.2% a year. Over about the last five years they often moved together, but not always (correlation 0.82).

Read the [XLB fund page](https://tactfolio.com/etf/XLB.md) for its returns by year and worst drop.

## XLI versions from other fund companies

Some people keep all their funds with one company. Here is the closest fund to XLI from each other company on this page:

- **Vanguard:** [VIS](https://tactfolio.com/etf/VIS.md), Vanguard Industrials ETF (same kind of fund, 0.09% a year)
- **Schwab:** [SCHV](https://tactfolio.com/etf/SCHV.md), Schwab U.S. Large-Cap Value ETF (related fund, 0.04% a year)
- **iShares (BlackRock):** [IWD](https://tactfolio.com/etf/IWD.md), iShares Russell 1000 Value ETF (related fund, 0.18% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company's index mutual fund, are not listed here.

## How to choose between XLI and its alternatives

- **What it tracks.** A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
- **The fee.** The difference is often small. On $10,000, XLI costs about $8 a year. VTV costs about $3.
- **History.** An older fund has been through more bad markets, so you can see how far it fell.
- **What you already own.** Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

## Swapping XLI to harvest a tax loss

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a "substantially identical" security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as VIS, SCHV or IWD, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in [Publication 550](https://www.irs.gov/publications/p550).

## Test XLI and its alternatives in a backtest

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add XLI and VIS, and see how each would have done on the same dates, or how a mix of both would have done.

## The details

Alternatives are picked from facts, not from returns. First come funds that track the same index as XLI. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like XLI over about the last five years come first. Returns and worst drops use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with XLI only on days both traded. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Sector rotation](https://tactfolio.com/learn/sector-rotation): Sector rotation explained: the 11 GICS sectors and their ETFs, business-cycle vs momentum rotation, and a classic rule with dated backtest figures.
- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.

## Common questions

### What ETF is most similar to XLI?

VIS is the closest. VIS also holds US makers of machines and airplanes, railroads and other industrial companies. It tracks the MSCI US Investable Market Industrials 25/50 Index, while XLI tracks the Industrial Select Sector Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to XLI?

Yes. VTV charges 0.03% a year, SCHV charges 0.04% a year and SPYV charges 0.04% a year, against 0.08% for XLI. On $10,000 that is about $3 a year instead of $8.

### Is XLI or VIS better?

Neither is better for everyone. From September 2004 to October 2026, XLI returned about 10.5% a year and VIS returned about 10.5% a year. XLI charges 0.08% a year and VIS charges 0.09%. Past returns do not tell you what comes next.

### What if I had put $10,000 in XLI 10 years ago?

It would have grown to about $34,735 by October 16, 2026, with dividends reinvested. That is about 13.3% a year. Past returns do not tell you what comes next.

## Sources

- [SPDR (State Street): State Street Industrial Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-industrial-select-sector-spdr-etf-xli)
- [Vanguard: Vanguard Industrials ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vis)
- [Schwab: Schwab U.S. Large-Cap Value ETF fund page](https://www.sec.gov/Archives/edgar/data/1454889/000110465926020698/tm266454-4_497k.htm)
- [iShares (BlackRock): iShares Russell 1000 Value ETF fund page](https://www.ishares.com/us/products/239708/ishares-russell-1000-value-etf)
- [Vanguard: Vanguard Morningstar Value ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vtv)
- [SPDR (State Street): State Street SPDR Portfolio S&P 500 Value ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-portfolio-sp-500-value-etf-spyv)
- [iShares (BlackRock): iShares S&P 500 Value ETF fund page](https://www.ishares.com/us/products/239728/ishares-s-p-500-value-etf)
- [Vanguard: Vanguard Materials ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vaw)
- [SPDR (State Street): State Street Materials Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-materials-select-sector-spdr-etf-xlb)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.