FCOM vs. XLF

Last updated Jun 13, 2026

FCOM (Fidelity MSCI Communication Services Index ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both exchange-traded funds - FCOM is a Large Cap Growth Equities fund tracking the MSCI USA IMI Telecommunication Services 25/50 Index, while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Both are passively managed. Over the past 10 years, FCOM returned 11.60%/yr vs 13.33%/yr for XLF. A 0.56 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

FCOM vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity MSCI Communication Services Index ETF (FCOM) and State Street Financial Select Sector SPDR ETF (XLF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCOM achieves a -3.17% return, which is significantly lower than XLF's -2.11% return. Over the past 10 years, FCOM has underperformed XLF with an annualized return of 11.60%, while XLF has yielded a comparatively higher 13.33% annualized return.

FCOM

• 1D: 0.08%
• 1M: -4.97%
• YTD: -3.17%
• 6M: -1.90%
• 1Y: 14.88%
• 3Y*: 22.19%
• 5Y*: 6.79%
• 10Y*: 11.60%

XLF

• 1D: 1.37%
• 1M: 4.61%
• YTD: -2.11%
• 6M: -2.09%
• 1Y: 6.20%
• 3Y*: 18.86%
• 5Y*: 9.15%
• 10Y*: 13.33%

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

FCOM vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FCOM Fidelity MSCI Communication Services Index ETF	-3.17%	26.06%	33.05%	44.65%	-38.97%	13.88%	28.33%	26.69%	-5.33%	8.20%
XLF State Street Financial Select Sector SPDR ETF	-2.11%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%

Correlation

The correlation between FCOM and XLF is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.56

The correlation between FCOM and XLF has been stable across timeframes, ranging from 0.50 to 0.60 - a consistent structural relationship.

FCOM vs. XLF - Sectors Allocation Comparison

Sectors	FCOM	XLF
Communication Services	98.5%	-
Technology	1.2%	1.8%
Consumer Cyclical	0.3%	-
Real Estate	0.1%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	98.0%
Healthcare	-	-
Industrials	-	0.2%
Utilities	-	-

Return for Risk

FCOM vs. XLF — Risk / Return Rank

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

FCOM

FCOM Risk / Return Rank: 30
FCOM Sharpe Ratio Rank: 30
FCOM Sortino Ratio Rank: 31
FCOM Omega Ratio Rank: 29
FCOM Calmar Ratio Rank: 26
FCOM Martin Ratio Rank: 31

XLF

XLF Risk / Return Rank: 15
XLF Sharpe Ratio Rank: 17
XLF Sortino Ratio Rank: 15
XLF Omega Ratio Rank: 15
XLF Calmar Ratio Rank: 15
XLF 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.

FCOM vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Communication Services Index ETF (FCOM) and State Street Financial Select Sector SPDR ETF (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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCOM	XLF	Difference
Sharpe ratio: Return per unit of total volatility	0.97	0.42	+0.55
Sortino ratio: Return per unit of downside risk	1.49	0.67	+0.82
Omega ratio: Gain probability vs. loss probability	1.18	1.08	+0.09
Calmar ratio: Return relative to maximum drawdown	1.11	0.42	+0.69
Martin ratio: Return relative to average drawdown	4.05	1.08	+2.97

FCOM vs. XLF - Sharpe Ratio Comparison

The current FCOM Sharpe Ratio is 0.97, which is higher than the XLF Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of FCOM and XLF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FCOM vs. XLF - Drawdown Comparison

The maximum FCOM drawdown since its inception was -46.76%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for FCOM and XLF.

Drawdown Indicators

	FCOM	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-46.76%	-82.69%	+35.93%
Max Drawdown (1Y) Largest decline over 1 year	-13.48%	-14.79%	+1.31%
Max Drawdown (3Y) Largest decline over 3 years	-21.16%	-15.54%	-5.62%
Max Drawdown (5Y) Largest decline over 5 years	-46.76%	-25.81%	-20.95%
Max Drawdown (10Y) Largest decline over 10 years	-46.76%	-42.86%	-3.90%
Current Drawdown Current decline from peak	-6.40%	-4.94%	-1.46%
Average Drawdown Average peak-to-trough decline	-8.66%	-20.01%	+11.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.68%	5.76%	-2.08%

Volatility

FCOM vs. XLF - Volatility Comparison

Fidelity MSCI Communication Services Index ETF (FCOM) and State Street Financial Select Sector SPDR ETF (XLF) have volatilities of 4.08% and 4.23%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCOM	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	4.23%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	11.19%	11.26%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	15.43%	14.69%	+0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.19%	18.66%	+2.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.96%	22.17%	-1.21%

FCOM vs. XLF - Expense Ratio Comparison

Both FCOM and XLF have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

FCOM vs. XLF - Dividend Comparison

FCOM's dividend yield for the trailing twelve months is around 0.96%, less than XLF's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCOM Fidelity MSCI Communication Services Index ETF	0.96%	0.88%	0.87%	0.77%	1.04%	0.90%	0.68%	0.86%	2.78%	11.70%	2.27%	2.92%
XLF State Street Financial Select Sector SPDR ETF	1.49%	1.31%	1.42%	1.71%	2.04%	1.63%	2.03%	1.87%	2.08%	1.48%	21.10%	1.95%

Frequently Asked Questions

Can I hold both FCOM and XLF in my portfolio?

FCOM and XLF have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCOM or XLF?

XLF has higher volatility (4.23%) compared to FCOM (4.08%). In terms of maximum drawdown, FCOM dropped -46.76% vs XLF's -82.69%.

Which ETF is better, FCOM or XLF?

On 10-year performance, XLF leads with 13.33% vs 11.60% for FCOM. Both ETFs have the same 0.08% expense ratio. On volatility, FCOM has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCOM or XLF?

Over the 10-year period, XLF has performed better with a 13.33% return vs 11.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCOM or XLF?

FCOM and XLF have the same expense ratio: 0.08% per year.

Which ETF pays a higher dividend yield, FCOM or XLF?

XLF has the higher dividend yield at 1.49%, compared with 0.96% for FCOM.

What is the main difference between FCOM and XLF?

FCOM is categorized as Large Cap Growth Equities, while XLF is Financials Equities. FCOM tracks MSCI USA IMI Telecommunication Services 25/50 Index, while XLF tracks Financial Select Sector Index. They also come from different issuers: Fidelity and State Street.

Which has better risk-adjusted returns?

FCOM currently has the higher Sharpe Ratio (0.97 vs 0.42), 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.