FNCL vs. XLF
Compare and contrast key facts about Fidelity MSCI Financials Index ETF (FNCL) and Financial Select Sector SPDR Fund (XLF).
FNCL and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FNCL is a passively managed fund by Fidelity that tracks the performance of the MSCI USA IMI Financials Index. It was launched on Oct 21, 2013. 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. Both FNCL and XLF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FNCL or XLF.
Key characteristics
| FNCL | XLF | |
|---|---|---|
| YTD Return | 12.07% | 13.43% |
| 1Y Return | 34.61% | 32.09% |
| 3Y Return (Ann) | 6.03% | 6.31% |
| 5Y Return (Ann) | 11.28% | 11.85% |
| 10Y Return (Ann) | 11.11% | 13.80% |
| Sharpe Ratio | 2.71 | 2.73 |
| Daily Std Dev | 13.10% | 12.10% |
| Max Drawdown | -44.38% | -82.43% |
| Current Drawdown | 0.00% | 0.00% |
Correlation
The correlation between FNCL and XLF is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FNCL vs. XLF - Performance Comparison
In the year-to-date period, FNCL achieves a 12.07% return, which is significantly lower than XLF's 13.43% return. Over the past 10 years, FNCL has underperformed XLF with an annualized return of 11.11%, while XLF has yielded a comparatively higher 13.80% 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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FNCL vs. XLF - Expense Ratio Comparison
FNCL has a 0.08% expense ratio, which is lower than XLF's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
FNCL vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity MSCI Financials Index ETF (FNCL) 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
FNCL vs. XLF - Dividend Comparison
FNCL's dividend yield for the trailing twelve months is around 1.68%, more than XLF's 1.51% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FNCL Fidelity MSCI Financials Index ETF | 1.68% | 1.91% | 2.29% | 1.75% | 2.26% | 2.17% | 2.37% | 1.60% | 1.81% | 2.17% | 1.77% | 0.43% |
XLF Financial Select Sector SPDR Fund | 1.51% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
FNCL vs. XLF - Drawdown Comparison
The maximum FNCL drawdown since its inception was -44.38%, smaller than the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for FNCL and XLF. For additional features, visit the drawdowns tool.
Volatility
FNCL vs. XLF - Volatility Comparison
Fidelity MSCI Financials Index ETF (FNCL) has a higher volatility of 2.96% compared to Financial Select Sector SPDR Fund (XLF) at 2.77%. This indicates that FNCL'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.