HDV vs. XLF

Last updated Jun 14, 2026

HDV (iShares Core High Dividend ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index, while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Both are passively managed. Over the past 10 years, HDV returned 9.47%/yr vs 13.33%/yr for XLF. A 0.70 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

HDV vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core High Dividend ETF (HDV) 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, HDV achieves a 15.30% return, which is significantly higher than XLF's -2.11% return. Over the past 10 years, HDV has underperformed XLF with an annualized return of 9.47%, while XLF has yielded a comparatively higher 13.33% annualized return.

HDV

• 1D: 0.87%
• 1M: 2.05%
• YTD: 15.30%
• 6M: 15.20%
• 1Y: 21.86%
• 3Y*: 15.16%
• 5Y*: 10.91%
• 10Y*: 9.47%

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)

HDV vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDV iShares Core High Dividend ETF	15.30%	11.90%	14.16%	1.72%	7.05%	19.45%	-6.48%	20.22%	-3.01%	13.40%
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 HDV and XLF is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011	0.70

Over the past year, the correlation between HDV and XLF has dropped to 0.35 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

HDV vs. XLF - Sectors Allocation Comparison

Sectors	HDV	XLF
Consumer Defensive	24.2%	-
Energy	21.0%	-
Healthcare	17.0%	-
Financial Services	10.8%	98.0%
Technology	9.7%	1.8%
Utilities	8.9%	-
Consumer Cyclical	6.0%	-
Industrials	1.3%	0.2%
Basic Materials	1.1%	-
Communication Services	0.1%	-
Real Estate	-	-

Return for Risk

HDV vs. XLF — Risk / Return Rank

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

HDV

HDV Risk / Return Rank: 80
HDV Sharpe Ratio Rank: 81
HDV Sortino Ratio Rank: 85
HDV Omega Ratio Rank: 76
HDV Calmar Ratio Rank: 86
HDV Martin Ratio Rank: 72

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.

HDV vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) 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.

	HDV	XLF	Difference
Sharpe ratio: Return per unit of total volatility	2.23	0.42	+1.80
Sortino ratio: Return per unit of downside risk	3.29	0.67	+2.62
Omega ratio: Gain probability vs. loss probability	1.38	1.08	+0.30
Calmar ratio: Return relative to maximum drawdown	4.18	0.42	+3.76
Martin ratio: Return relative to average drawdown	11.59	1.08	+10.51

HDV vs. XLF - Sharpe Ratio Comparison

The current HDV Sharpe Ratio is 2.23, which is higher than the XLF Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of HDV 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

HDV vs. XLF - Drawdown Comparison

The maximum HDV drawdown since its inception was -37.04%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for HDV and XLF.

Drawdown Indicators

	HDV	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-37.04%	-82.69%	+45.65%
Max Drawdown (1Y) Largest decline over 1 year	-5.18%	-14.79%	+9.61%
Max Drawdown (3Y) Largest decline over 3 years	-10.49%	-15.54%	+5.05%
Max Drawdown (5Y) Largest decline over 5 years	-15.42%	-25.81%	+10.39%
Max Drawdown (10Y) Largest decline over 10 years	-37.04%	-42.86%	+5.82%
Current Drawdown Current decline from peak	-0.29%	-4.94%	+4.65%
Average Drawdown Average peak-to-trough decline	-3.08%	-20.01%	+16.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.87%	5.76%	-3.89%

Volatility

HDV vs. XLF - Volatility Comparison

The current volatility for iShares Core High Dividend ETF (HDV) is 3.10%, while State Street Financial Select Sector SPDR ETF (XLF) has a volatility of 4.23%. This indicates that HDV 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

	HDV	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.10%	4.23%	-1.13%
Volatility (6M) Calculated over the trailing 6-month period	7.44%	11.26%	-3.82%
Volatility (1Y) Calculated over the trailing 1-year period	9.73%	14.69%	-4.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.83%	18.66%	-5.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	22.17%	-6.44%

HDV vs. XLF - Expense Ratio Comparison

Both HDV 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

HDV vs. XLF - Dividend Comparison

HDV's dividend yield for the trailing twelve months is around 2.84%, more than XLF's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDV iShares Core High Dividend ETF	2.84%	3.22%	3.67%	3.82%	3.56%	3.47%	4.07%	3.27%	3.67%	3.27%	3.28%	3.92%
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 HDV and XLF in my portfolio?

HDV and XLF have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDV or XLF?

XLF has higher volatility (4.23%) compared to HDV (3.10%). In terms of maximum drawdown, HDV dropped -37.04% vs XLF's -82.69%.

Which ETF is better, HDV or XLF?

On 10-year performance, XLF leads with 13.33% vs 9.47% for HDV. Both ETFs have the same 0.08% expense ratio. On volatility, HDV has been the lower-risk option at 3.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDV or XLF?

Over the 10-year period, XLF has performed better with a 13.33% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDV or XLF?

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

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

HDV has the higher dividend yield at 2.84%, compared with 1.49% for XLF.

What is the main difference between HDV and XLF?

HDV is categorized as Dividend, while XLF is Financials Equities. HDV tracks Morningstar Dividend Yield Focus Index, while XLF tracks Financial Select Sector Index. They also come from different issuers: iShares and State Street.

Which has better risk-adjusted returns?

HDV currently has the higher Sharpe Ratio (2.23 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.