DFNL vs. KWT

Last updated Jun 4, 2026

DFNL (Davis Select Financial ETF) and KWT (iShares MSCI Kuwait ETF) are both Financials Equities funds. DFNL is actively managed, while KWT is passively managed. Over the past 5 years, DFNL returned 10.20%/yr vs 9.17%/yr for KWT. At a 0.34 correlation, their price movements are largely independent. DFNL charges 0.64%/yr vs 0.74%/yr for KWT.

Performance

DFNL vs. KWT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Davis Select Financial ETF (DFNL) and iShares MSCI Kuwait ETF (KWT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFNL achieves a -5.82% return, which is significantly lower than KWT's -1.30% return.

DFNL

• 1D: -1.60%
• 1M: -1.94%
• YTD: -5.82%
• 6M: -1.79%
• 1Y: 12.54%
• 3Y*: 22.23%
• 5Y*: 10.20%
• 10Y*: —

KWT

• 1D: -0.59%
• 1M: -1.54%
• YTD: -1.30%
• 6M: -1.08%
• 1Y: 6.41%
• 3Y*: 10.61%
• 5Y*: 9.17%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

DFNL vs. KWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DFNL Davis Select Financial ETF	-5.82%	28.59%	28.56%	14.45%	-8.45%	31.25%	21.03%
KWT iShares MSCI Kuwait ETF	-1.30%	25.38%	11.29%	-4.71%	5.16%	30.73%	9.07%

Correlation

The correlation between DFNL and KWT is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 4, 2020	0.34

DFNL vs. KWT - Sectors Allocation Comparison

Sectors	DFNL	KWT
Financial Services	92.6%	64.4%
Technology	3.7%	-
Industrials	2.7%	10.8%
Consumer Cyclical	1.0%	2.2%
Basic Materials	-	1.6%
Communication Services	-	6.3%
Consumer Defensive	-	2.7%
Energy	-	-
Healthcare	-	-
Real Estate	-	11.0%
Utilities	-	1.0%

Return for Risk

DFNL vs. KWT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DFNL

DFNL Risk / Return Rank: 23
DFNL Sharpe Ratio Rank: 24
DFNL Sortino Ratio Rank: 23
DFNL Omega Ratio Rank: 23
DFNL Calmar Ratio Rank: 22
DFNL Martin Ratio Rank: 22

KWT

KWT Risk / Return Rank: 16
KWT Sharpe Ratio Rank: 16
KWT Sortino Ratio Rank: 16
KWT Omega Ratio Rank: 16
KWT Calmar Ratio Rank: 16
KWT Martin Ratio Rank: 15

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DFNL vs. KWT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Davis Select Financial ETF (DFNL) and iShares MSCI Kuwait ETF (KWT). 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.

	DFNL	KWT	Difference
Sharpe ratio: Return per unit of total volatility	0.86	0.47	+0.39
Sortino ratio: Return per unit of downside risk	1.27	0.74	+0.52
Omega ratio: Gain probability vs. loss probability	1.15	1.10	+0.05
Calmar ratio: Return relative to maximum drawdown	0.97	0.56	+0.42
Martin ratio: Return relative to average drawdown	2.84	1.33	+1.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFNL vs. KWT - Sharpe Ratio Comparison

The current DFNL Sharpe Ratio is 0.86, which is higher than the KWT Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of DFNL and KWT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DFNL	KWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.86	0.47	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.68	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.90	-0.40

Drawdowns

DFNL vs. KWT - Drawdown Comparison

The maximum DFNL drawdown since its inception was -44.51%, which is greater than KWT's maximum drawdown of -24.37%. Use the drawdown chart below to compare losses from any high point for DFNL and KWT.

Drawdown Indicators

	DFNL	KWT	Difference
Max Drawdown Largest peak-to-trough decline	-44.51%	-24.37%	-20.14%
Max Drawdown (1Y) Largest decline over 1 year	-12.94%	-11.54%	-1.40%
Max Drawdown (3Y) Largest decline over 3 years	-16.05%	-15.72%	-0.33%
Max Drawdown (5Y) Largest decline over 5 years	-26.27%	-24.37%	-1.90%
Current Drawdown Current decline from peak	-8.54%	-6.07%	-2.47%
Average Drawdown Average peak-to-trough decline	-7.66%	-7.30%	-0.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.43%	4.85%	-0.42%

Volatility

DFNL vs. KWT - Volatility Comparison

Davis Select Financial ETF (DFNL) has a higher volatility of 3.93% compared to iShares MSCI Kuwait ETF (KWT) at 3.16%. This indicates that DFNL's price experiences larger fluctuations and is considered to be riskier than KWT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFNL	KWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.93%	3.16%	+0.77%
Volatility (6M) Calculated over the trailing 6-month period	11.22%	11.64%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	14.68%	13.84%	+0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.33%	13.61%	+5.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.62%	13.93%	+8.69%

DFNL vs. KWT - Expense Ratio Comparison

DFNL has a 0.64% expense ratio, which is lower than KWT's 0.74% expense ratio.

Dividends

DFNL vs. KWT - Dividend Comparison

DFNL's dividend yield for the trailing twelve months is around 1.45%, less than KWT's 5.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DFNL Davis Select Financial ETF	1.45%	1.37%	2.19%	2.33%	3.34%	2.45%	1.45%	2.52%	3.12%	1.10%
KWT iShares MSCI Kuwait ETF	5.47%	5.40%	6.09%	2.25%	5.87%	7.65%	0.27%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFNL and KWT in my portfolio?

DFNL and KWT have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFNL or KWT?

DFNL has higher volatility (3.93%) compared to KWT (3.16%). In terms of maximum drawdown, DFNL dropped -44.51% vs KWT's -24.37%.

Which ETF is better, DFNL or KWT?

On 5-year performance, DFNL leads with 10.20% vs 9.17% for KWT. On fees, DFNL is cheaper at 0.64% per year. On volatility, KWT has been the lower-risk option at 3.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFNL or KWT?

Over the 5-year period, DFNL has performed better with a 10.20% return vs 9.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFNL or KWT?

DFNL is cheaper with a 0.64% expense ratio, compared with 0.74% for KWT.

Which ETF pays a higher dividend yield, DFNL or KWT?

KWT has the higher dividend yield at 5.47%, compared with 1.45% for DFNL.

What is the main difference between DFNL and KWT?

They also come from different issuers: Davis Advisers and iShares. Their fees differ too: 0.64% for DFNL and 0.74% for KWT.

Which has better risk-adjusted returns?

DFNL currently has the higher Sharpe Ratio (0.86 vs 0.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.