XLI vs PAVE Stock Comparison: AI Score, Valuation, Performance and Upside
XLI and PAVE both provide industrial sector exposure but with different emphasis. XLI is the broad S&P 500 industrials sector ETF including defense, transportation, and professional services. PAVE is the infrastructure-focused thematic ETF specifically targeting construction materials, equipment, and electrical components benefiting from IIJA infrastructure spending. XLI is cheaper and more diversified; PAVE is more targeted for infrastructure investment thesis.
XLI vs PAVE — XLI (the S&P 500 industrials sector ETF with broad coverage of defense, machinery, transportation, and professional services at 0.09% expense ratio) versus PAVE (the infrastructure thematic ETF targeting construction materials, equipment, and electrical components aligned with IIJA infrastructure spending at 0.47%).
XLI holds the edge across 3 of 5 key metrics in this comparison. PAVE has delivered stronger 1-year price return (+13.79% vs +10.70% for XLI).
- want the broadest industrial sector exposure including defense, transportation, machinery, and services in a single low-cost ETF
- prefer 0.09% expense ratio and maximum liquidity for tactical or strategic industrial sector allocation
- value defense and aerospace exposure (RTX, Lockheed, General Dynamics) that PAVE's infrastructure focus excludes
- are comfortable with cyclical machinery and Boeing company-specific risk
- specifically want infrastructure spending exposure — IIJA-aligned construction materials (Vulcan, Martin Marietta) and electrical components are PAVE's core differentiator
- believe US infrastructure capital spending cycle is a multi-year theme worth targeted exposure beyond the diluted weighting in broad industrial ETFs
- value the infrastructure thesis alignment even at 0.47% expense ratio vs XLI's 0.09%
- are comfortable with thematic concentration and infrastructure cycle risk if government spending slows or reallocates
| Metric | XLI | PAVE |
|---|---|---|
| ETF scorei | 27.2 | 26.2 |
| Latest closei | $169.71 | $54.45 |
| 1M returni | -0.14% | +1.06% |
| 3M returni | -7.09% | -5.37% |
| 6M returni | -0.23% | -2.93% |
| 1Y returni | +10.70% | +13.79% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLI | PAVE |
|---|---|---|
| 1Y ago | $11.24K (+12.4%) started 2025-11-03 | $11.51K (+15.1%) started 2025-11-03 |
| 5Y ago | $18.84K (+88.4%) started 2021-11-03 | $20.86K (+108.6%) started 2021-11-03 |
| 10Y ago | $42.84K (+328.4%) started 2016-11-03 | $41.75K (+317.5%) started 2017-03-08 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLI | PAVE |
|---|---|---|
| Expense ratioi | 0.08% | 0.47% |
| Total assets (AUM)i | $29.83B | $13.36B |
| Dividend yieldi | 1.13% | 0.82% |
| Trailing P/Ei | 27.88 | 27.99 |
| Betai | 0.99 | 1.21 |
| 52-week change | 10.70% | 13.79% |
| Metric | XLI | PAVE |
|---|---|---|
| 1Y returni | +10.70% | +13.79% |
| 6M returni | -0.23% | -2.93% |
| 3M returni | -7.09% | -5.37% |
| 1M returni | -0.14% | +1.06% |
| 1Y Sharpe ratio | 0.44 | 0.53 |
| Betai | 0.99 | 1.21 |
| Dividend yieldi | 1.13% | 0.82% |
| 5Y CAGR | +11.77% | +15.01% |
Over the past year, XLI and PAVE have moved strongly in the same direction (correlation of 0.93), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLI | PAVE |
|---|---|---|---|
| 1Y | Growthi | +11.17% | +14.12% |
| CAGRi | +11.21% | +14.17% | |
| Volatilityi | 17.36% | 20.60% | |
| Sharpe ratioi | 0.44 | 0.53 | |
| Sortino ratioi | 0.64 | 0.77 | |
| Max drawdowni | 12.21% | 13.83% | |
| Current drawdowni | 8.76% | 9.08% | |
| Avg drawdowni | 3.53% | 4.40% | |
| Ulcer Indexi | 4.89% | 5.95% | |
| Max daily dropi | 3.38% | 3.70% | |
| Max wkly dropi | 4.45% | 6.37% | |
| 5Y | Growthi | +74.38% | +101.16% |
| CAGRi | +11.77% | +15.01% | |
| Volatilityi | 17.64% | 21.70% | |
| Sharpe ratioi | 0.47 | 0.55 | |
| Sortino ratioi | 0.67 | 0.79 | |
| Max drawdowni | 21.64% | 26.23% | |
| Current drawdowni | 8.76% | 9.08% | |
| Avg drawdowni | 4.59% | 5.77% | |
| Ulcer Indexi | 6.46% | 7.84% | |
| Max daily dropi | 6.29% | 6.63% | |
| Max wkly dropi | 11.68% | 12.00% | |
| 10Y | Growthi | +256.28% | +292.27% |
| CAGRi | +13.55% | +15.21% | |
| Volatilityi | 20.09% | 24.20% | |
| Sharpe ratioi | 0.51 | 0.52 | |
| Sortino ratioi | 0.72 | 0.73 | |
| Max drawdowni | 42.33% | 44.08% | |
| Current drawdowni | 8.76% | 9.08% | |
| Avg drawdowni | 4.88% | 6.26% | |
| Ulcer Indexi | 7.57% | 8.87% | |
| Max daily dropi | 11.34% | 13.58% | |
| Max wkly dropi | 20.13% | 23.08% |
| Category | XLI | PAVE |
|---|---|---|
| Fund name | State Street Industrial Select Sector SPDR ETF | Global X U.S. Infrastructure Development ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.47% |
| Total assets (AUM)i | $29.83B | $13.36B |
| Dividend yieldi | 1.13% | 0.82% |
- Broadest industrial sector coverage: XLI's 77+ holdings cover aerospace/defense, transportation, machinery, professional services, and industrial conglomerates in a single low-cost ETF
- Defense exposure through RTX, Lockheed, General Dynamics: XLI's aerospace and defense names provide geopolitical risk hedging and government spending exposure
- 0.09% expense ratio with excellent liquidity: XLI is the most traded industrial sector ETF — best for tactical and strategic industrial positioning
- Pure infrastructure spending exposure: PAVE specifically targets companies benefiting from infrastructure construction and spending — construction materials, equipment, and electrical components are core holdings
- IIJA and infrastructure legislation alignment: PAVE is designed to capture the Infrastructure Investment and Jobs Act (IIJA) $1.2T spending impact — direct exposure to government infrastructure capex cycle
- Higher concentration in construction materials: Vulcan Materials, Martin Marietta, and steel companies in PAVE provide direct infrastructure materials exposure that broad industrials ETFs dilute
- Boeing concentration risk: Boeing's significant index weight creates company-specific risk — Boeing's quality control and 737 MAX issues have meaningfully impacted XLI at times
- Cyclical industrial machinery exposure: Caterpillar and Deere are highly cyclical — commodity/construction downturns directly impact these XLI holdings
- Diluted infrastructure exposure: XLI's broad industrial mandate means pure infrastructure plays are diluted by defense, professional services, and transportation holdings
- More concentrated theme vs broad XLI: PAVE's infrastructure focus means it underperforms XLI when defense or transportation (not in PAVE focus) outperform
- Higher expense ratio (~0.47%) vs XLI's 0.09%: PAVE's thematic ETF costs 5x more than XLI — a meaningful fee disadvantage over long holding periods
- Infrastructure spending cycle risk: if government infrastructure spending slows or IIJA funds are delayed, PAVE's thesis-specific exposure underperforms broader industrials
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