GDL vs. XLF

Last updated Aug 4, 2026

GDL (The GDL Fund) and XLF (State Street Financial Select Sector SPDR ETF) are both funds - GDL is a Event Driven fund managed by Gabelli, while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Over the past 10 years, GDL returned 3.97%/yr vs 13.48%/yr for XLF. Their 0.36 correlation means their historical movements had little consistent relationship. GDL charges 0.03%/yr vs 0.08%/yr for XLF.

Performance

GDL vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The GDL Fund (GDL) 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, GDL achieves a 2.42% return, which is significantly lower than XLF's 5.67% return. Over the past 10 years, GDL has underperformed XLF with an annualized return of 3.97%, while XLF has yielded a comparatively higher 13.48% annualized return.

GDL

• 1D: 0.60%
• 1M: -0.30%
• 6M: 0.45%
• YTD: 2.42%
• 1Y: 8.68%
• 3Y*: 8.34%
• 5Y*: 4.66%
• 10Y*: 3.97%
• ALL TIME*: 3.31%

XLF

• 1D: 0.77%
• 1M: 3.16%
• 6M: 7.12%
• YTD: 5.67%
• 1Y: 13.37%
• 3Y*: 19.90%
• 5Y*: 11.30%
• 10Y*: 13.48%
• ALL TIME*: 6.11%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
GDL The GDL Fund	$49.10K	$62.00K	$73.18K
XLF State Street Financial Select Sector SPDR ETF	$1.80B	$1.89B	$1.92B

GDL vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GDL The GDL Fund	2.42%	11.83%	5.94%	9.02%	-6.88%	8.04%	-0.99%	5.87%	-1.60%	4.74%
XLF State Street Financial Select Sector SPDR ETF	5.67%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%

Correlation

The correlation between GDL and XLF is 0.12, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.12
Correlation (3Y) Balances recent behavior with more history.	0.21
Correlation (5Y) Shows whether the relationship held over a longer period.	0.21
Correlation (10Y) Provides a long-term view across more market conditions.	0.22
Correlation (All Time) Calculated using the full available price history since Apr 23, 2007	0.36

Over the past year, the correlation between GDL and XLF has dropped to 0.12 - well below their long-term average of 0.36, suggesting their price drivers have been diverging.

Return for Risk

GDL vs. XLF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

GDL

GDL Risk / Return Rank: 51
GDL Sharpe Ratio Rank: 39
GDL Sortino Ratio Rank: 38
GDL Omega Ratio Rank: 35
GDL Calmar Ratio Rank: 79
GDL Martin Ratio Rank: 64

XLF

XLF Risk / Return Rank: 32
XLF Sharpe Ratio Rank: 37
XLF Sortino Ratio Rank: 34
XLF Omega Ratio Rank: 34
XLF Calmar Ratio Rank: 28
XLF Martin Ratio Rank: 28

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

GDL vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The GDL Fund (GDL) 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.

	GDL	XLF	Difference
Sharpe ratio: Return per unit of total volatility	1.28	0.92	+0.36
Sortino ratio: Return per unit of downside risk	1.83	1.32	+0.51
Omega ratio: Gain probability vs. loss probability	1.22	1.17	+0.06
Calmar ratio: Return relative to maximum drawdown	2.72	0.91	+1.81
Martin ratio: Return relative to average drawdown	8.75	2.32	+6.43

GDL vs. XLF - Sharpe Ratio Comparison

The current GDL Sharpe Ratio is 1.28, which is higher than the XLF Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of GDL 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

GDL vs. XLF - Drawdown Comparison

The maximum GDL drawdown since its inception was -38.74%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for GDL and XLF.

Drawdown Indicators

	GDL	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-38.74%	-82.69%	+43.95%
Max Drawdown (1Y) Largest decline over 1 year	-3.21%	-14.79%	+11.58%
Max Drawdown (3Y) Largest decline over 3 years	-6.00%	-15.54%	+9.54%
Max Drawdown (5Y) Largest decline over 5 years	-9.48%	-25.81%	+16.33%
Max Drawdown (10Y) Largest decline over 10 years	-38.74%	-42.86%	+4.12%
Current Drawdown Current decline from peak	-0.71%	-0.38%	-0.33%
Average Drawdown Average peak-to-trough decline	-4.89%	-19.92%	+15.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	5.78%	-4.79%

Volatility

GDL vs. XLF - Volatility Comparison

The current volatility for The GDL Fund (GDL) is 1.25%, while State Street Financial Select Sector SPDR ETF (XLF) has a volatility of 3.88%. This indicates that GDL experiences smaller price fluctuations and is considered to be less risky than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GDL	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	3.88%	-2.63%
Volatility (6M) Calculated over the trailing 6-month period	4.28%	11.12%	-6.84%
Volatility (1Y) Calculated over the trailing 1-year period	6.85%	14.68%	-7.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.59%	18.45%	-9.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.97%	22.08%	-9.11%

GDL vs. XLF - Expense Ratio Comparison

GDL has a 0.03% expense ratio, which is lower than XLF's 0.08% 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%.

Dividends

GDL vs. XLF - Dividend Comparison

GDL's dividend yield for the trailing twelve months is around 5.69%, more than XLF's 1.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GDL The GDL Fund	5.69%	5.67%	5.99%	5.97%	6.12%	5.38%	5.28%	4.30%	4.36%	5.96%	6.50%	6.39%
XLF State Street Financial Select Sector SPDR ETF	1.41%	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 GDL and XLF in my portfolio?

GDL and XLF have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GDL or XLF?

XLF has higher volatility (3.88%) compared to GDL (1.25%). In terms of maximum drawdown, GDL dropped -38.74% vs XLF's -82.69%.

Which has better risk-adjusted returns?

GDL currently has the higher Sharpe Ratio (1.28 vs 0.92), 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.