FLJP vs. XLF

Last updated Jun 14, 2026

FLJP (Franklin FTSE Japan ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both exchange-traded funds - FLJP is a Japan Equities fund tracking the FTSE Japan RIC Capped Index, while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Both are passively managed. Over the past 5 years, FLJP returned 8.82%/yr vs 9.15%/yr for XLF. A 0.54 correlation means they provide meaningful diversification when combined. FLJP charges 0.09%/yr vs 0.08%/yr for XLF.

Performance

FLJP vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Japan ETF (FLJP) 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, FLJP achieves a 14.83% return, which is significantly higher than XLF's -2.11% return.

FLJP

• 1D: 0.56%
• 1M: 0.15%
• YTD: 14.83%
• 6M: 14.62%
• 1Y: 31.78%
• 3Y*: 16.94%
• 5Y*: 8.82%
• 10Y*: —

XLF

• 1D: 1.37%
• 1M: 4.00%
• YTD: -2.11%
• 6M: -2.09%
• 1Y: 8.41%
• 3Y*: 18.86%
• 5Y*: 9.15%
• 10Y*: 13.33%

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

FLJP vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLJP Franklin FTSE Japan ETF	14.83%	26.79%	6.99%	20.00%	-16.57%	0.99%	15.76%	18.99%	-14.01%	2.53%
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%	4.70%

Correlation

The correlation between FLJP and XLF is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (All Time) Calculated using the full available price history since Nov 6, 2017	0.54

The correlation between FLJP and XLF shifts across timeframes, from 0.37 (1 year) to 0.54 (all time), reflecting how their relationship changes across market environments.

FLJP vs. XLF - Sectors Allocation Comparison

Sectors	FLJP	XLF
Industrials	24.5%	0.2%
Technology	21.1%	1.8%
Financial Services	16.4%	98.0%
Consumer Cyclical	12.0%	-
Communication Services	6.1%	-
Healthcare	5.7%	-
Basic Materials	4.9%	-
Consumer Defensive	3.8%	-
Real Estate	2.8%	-
Utilities	1.2%	-
Energy	0.9%	-

Return for Risk

FLJP vs. XLF — Risk / Return Rank

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

FLJP

FLJP Risk / Return Rank: 54
FLJP Sharpe Ratio Rank: 54
FLJP Sortino Ratio Rank: 54
FLJP Omega Ratio Rank: 55
FLJP Calmar Ratio Rank: 53
FLJP Martin Ratio Rank: 54

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.

FLJP vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Japan ETF (FLJP) 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.

	FLJP	XLF	Difference
Sharpe ratio: Return per unit of total volatility	1.60	0.42	+1.17
Sortino ratio: Return per unit of downside risk	2.30	0.67	+1.63
Omega ratio: Gain probability vs. loss probability	1.30	1.08	+0.22
Calmar ratio: Return relative to maximum drawdown	2.33	0.42	+1.91
Martin ratio: Return relative to average drawdown	8.10	1.08	+7.02

FLJP vs. XLF - Sharpe Ratio Comparison

The current FLJP Sharpe Ratio is 1.60, which is higher than the XLF Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of FLJP 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

FLJP vs. XLF - Drawdown Comparison

The maximum FLJP drawdown since its inception was -32.49%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for FLJP and XLF.

Drawdown Indicators

	FLJP	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-32.49%	-82.69%	+50.20%
Max Drawdown (1Y) Largest decline over 1 year	-13.30%	-14.79%	+1.49%
Max Drawdown (3Y) Largest decline over 3 years	-14.17%	-15.54%	+1.37%
Max Drawdown (5Y) Largest decline over 5 years	-32.49%	-25.81%	-6.68%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.86%	—
Current Drawdown Current decline from peak	-1.49%	-4.94%	+3.45%
Average Drawdown Average peak-to-trough decline	-9.34%	-20.01%	+10.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.83%	5.76%	-1.93%

Volatility

FLJP vs. XLF - Volatility Comparison

Franklin FTSE Japan ETF (FLJP) has a higher volatility of 5.62% compared to State Street Financial Select Sector SPDR ETF (XLF) at 4.23%. This indicates that FLJP'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.

Volatility by Period

	FLJP	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.62%	4.23%	+1.39%
Volatility (6M) Calculated over the trailing 6-month period	15.45%	11.26%	+4.19%
Volatility (1Y) Calculated over the trailing 1-year period	19.47%	14.69%	+4.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.86%	18.66%	-0.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.84%	22.17%	-4.33%

FLJP vs. XLF - Expense Ratio Comparison

FLJP has a 0.09% expense ratio, which is higher than XLF's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FLJP vs. XLF - Dividend Comparison

FLJP's dividend yield for the trailing twelve months is around 4.48%, more than XLF's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLJP Franklin FTSE Japan ETF	4.48%	5.15%	4.56%	3.00%	1.92%	2.40%	1.51%	2.26%	1.50%	0.10%	0.00%	0.00%
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 FLJP and XLF in my portfolio?

FLJP and XLF have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLJP or XLF?

FLJP has higher volatility (5.62%) compared to XLF (4.23%). In terms of maximum drawdown, FLJP dropped -32.49% vs XLF's -82.69%.

Which ETF is better, FLJP or XLF?

On 5-year performance, XLF leads with 9.15% vs 8.82% for FLJP. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 4.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLJP or XLF?

Over the 5-year period, XLF has performed better with a 9.15% return vs 8.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLJP or XLF?

XLF is cheaper with a 0.08% expense ratio, compared with 0.09% for FLJP.

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

FLJP has the higher dividend yield at 4.48%, compared with 1.49% for XLF.

What is the main difference between FLJP and XLF?

FLJP is categorized as Japan Equities, while XLF is Financials Equities. FLJP tracks FTSE Japan RIC Capped Index, while XLF tracks Financial Select Sector Index. They also come from different issuers: Franklin Templeton and State Street. Their fees differ too: 0.09% for FLJP and 0.08% for XLF.

Which has better risk-adjusted returns?

FLJP currently has the higher Sharpe Ratio (1.60 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.