FTXO vs. XLF
Compare and contrast key facts about First Trust Nasdaq Bank ETF (FTXO) and Financial Select Sector SPDR Fund (XLF).
FTXO and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FTXO is a passively managed fund by First Trust that tracks the performance of the NASDAQ US Banks Index. It was launched on Sep 20, 2016. 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 FTXO 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: FTXO or XLF.
Key characteristics
| FTXO | XLF | |
|---|---|---|
| YTD Return | 4.94% | 8.97% |
| 1Y Return | 29.75% | 26.75% |
| 3Y Return (Ann) | -3.61% | 6.46% |
| 5Y Return (Ann) | 3.11% | 10.29% |
| Sharpe Ratio | 1.27 | 2.23 |
| Daily Std Dev | 24.95% | 12.91% |
| Max Drawdown | -55.26% | -82.43% |
| Current Drawdown | -23.52% | -3.09% |
Correlation
The correlation between FTXO and XLF is 0.91, 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
FTXO vs. XLF - Performance Comparison
In the year-to-date period, FTXO achieves a 4.94% return, which is significantly lower than XLF's 8.97% 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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FTXO vs. XLF - Expense Ratio Comparison
FTXO has a 0.60% expense ratio, which is higher than XLF's 0.13% expense ratio.
Risk-Adjusted Performance
FTXO vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Bank ETF (FTXO) 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
FTXO vs. XLF - Dividend Comparison
FTXO's dividend yield for the trailing twelve months is around 2.92%, more than XLF's 1.57% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTXO First Trust Nasdaq Bank ETF | 2.92% | 3.20% | 2.94% | 1.64% | 2.74% | 2.53% | 3.51% | 1.09% | 0.16% | 0.00% | 0.00% | 0.00% |
XLF Financial Select Sector SPDR Fund | 1.57% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
FTXO vs. XLF - Drawdown Comparison
The maximum FTXO drawdown since its inception was -55.26%, smaller than the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for FTXO and XLF. For additional features, visit the drawdowns tool.
Volatility
FTXO vs. XLF - Volatility Comparison
First Trust Nasdaq Bank ETF (FTXO) has a higher volatility of 6.07% compared to Financial Select Sector SPDR Fund (XLF) at 3.67%. This indicates that FTXO'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.