AEP vs. XLF
Compare and contrast key facts about American Electric Power Company, Inc. (AEP) and Financial Select Sector SPDR Fund (XLF).
XLF is a passively managed fund by State Street that tracks the performance of the Financial Select Sector Index. It was launched on Dec 16, 1998.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AEP or XLF.
Key characteristics
| AEP | XLF | |
|---|---|---|
| YTD Return | 2.82% | 6.33% |
| 1Y Return | -7.94% | 21.23% |
| 3Y Return (Ann) | 1.34% | 6.09% |
| 5Y Return (Ann) | 3.47% | 10.05% |
| 10Y Return (Ann) | 8.62% | 13.01% |
| Sharpe Ratio | -0.34 | 1.66 |
| Daily Std Dev | 20.37% | 12.95% |
| Max Drawdown | -62.75% | -82.43% |
| Current Drawdown | -16.59% | -5.44% |
Correlation
The correlation between AEP and XLF is 0.33, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
AEP vs. XLF - Performance Comparison
In the year-to-date period, AEP achieves a 2.82% return, which is significantly lower than XLF's 6.33% return. Over the past 10 years, AEP has underperformed XLF with an annualized return of 8.62%, while XLF has yielded a comparatively higher 13.01% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
AEP vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Electric Power Company, Inc. (AEP) and Financial Select Sector SPDR Fund (XLF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
AEP vs. XLF - Dividend Comparison
AEP's dividend yield for the trailing twelve months is around 4.14%, more than XLF's 1.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AEP American Electric Power Company, Inc. | 4.14% | 4.15% | 3.34% | 3.37% | 3.41% | 2.87% | 3.39% | 3.25% | 3.61% | 3.69% | 3.34% | 4.17% |
XLF Financial Select Sector SPDR Fund | 1.61% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
AEP vs. XLF - Drawdown Comparison
The maximum AEP drawdown since its inception was -62.75%, smaller than the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for AEP and XLF. For additional features, visit the drawdowns tool.
Volatility
AEP vs. XLF - Volatility Comparison
American Electric Power Company, Inc. (AEP) has a higher volatility of 6.06% compared to Financial Select Sector SPDR Fund (XLF) at 3.78%. This indicates that AEP's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.