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State Street Financial Select Sector SPDR ETF (XLF) Sharpe Ratio: 0.64

ETF · Currency in USD · Last updated Jun 17, 2026

The State Street Financial Select Sector SPDR ETF (XLF) seeks to track the Financial Select Sector Index, providing exposure to U.S. large-cap financial sector companies in the S&P 500. Holdings include diversified financial services firms, banks, insurance companies, capital markets, and consumer finance providers. The fund is widely used to express sector views or hedges on U.S. financials.

XLF's Sharpe Ratio of 0.64 indicates that for each unit of volatility, it generates 0.64 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 17, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

XLF Sharpe Ratio Rank

XLF Sharpe Ratio Rank: 19.119
Concerning

XLF ranks above 19.1% of all investments in our database based on Sharpe Ratio over the past 12 months, indicating weak returns relative to total risk taken. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Weak risk-adjusted returns relative to category peers
  • Evaluate whether this holding aligns with your risk-return objectives
  • Consider reducing exposure or re-evaluating position size
  • Review higher-ranked alternatives in the same category

XLF Sharpe Ratio Market Positioning

The chart shows XLF's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.87 or lower
  • Yellow zone (middle 50%): 0.87 to 2.22
  • Green zone (top 25%): 2.22 or higher
  • Top 1%: 7.43+
  • Median: 1.63 — half of all investments score higher

How it compares to other similar ETFs

The table compares State Street Financial Select Sector SPDR ETF's Sharpe Ratio with other ETFs in the Financials Equities category across multiple time periods, showing how XLF's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 17, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
HSBHHSBC Holdings plc ADRhedged ETF2.77
GSIBThemes Global Systemically Important Banks ETF2.74
KBWBInvesco KBW Bank ETF2.17
FTXOFirst Trust Nasdaq Bank ETF1.66
IATiShares U.S. Regional Banks ETF1.55
EUFNiShares MSCI Europe Financials ETF1.51
IXGiShares Global Financials ETF1.43
PSCFInvesco S&P SmallCap Financials ETF1.42
KRESPDR S&P Regional Banking ETF1.36
KBESPDR S&P Bank ETF1.32
XLFState Street Financial Select Sector SPDR ETF0.64

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows XLF's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when XLF consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does XLF fit in your portfolio?

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