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IYG vs. XLF
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IYG vs. XLF

Last updated Aug 2, 2026
Documentation

IYG (iShares U.S. Financial Services ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both Financials Equities funds - IYG tracks the Dow Jones U.S. Financial Services TR while XLF tracks the Financial Select Sector Index. Both are passively managed. Over the past 10 years, IYG returned 14.87%/yr vs 13.69%/yr for XLF. Their 0.96 correlation means they have historically moved very closely together. IYG charges 0.42%/yr vs 0.08%/yr for XLF.

Performance

IYG vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Financial Services ETF (IYG) and State Street Financial Select Sector SPDR ETF (XLF). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IYG achieves a 4.15% return, which is significantly lower than XLF's 4.86% return. Over the past 10 years, IYG has outperformed XLF with an annualized return of 14.87%, while XLF has yielded a comparatively lower 13.69% annualized return.

IYG

1D
0.06%
1M
2.30%
6M
6.42%
YTD
4.15%
1Y
13.26%
3Y*
21.07%
5Y*
10.69%
10Y*
14.87%
ALL TIME*
6.68%

XLF

1D
-0.11%
1M
2.37%
6M
7.47%
YTD
4.86%
1Y
12.50%
3Y*
19.11%
5Y*
11.20%
10Y*
13.69%
ALL TIME*
6.09%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

PositionAvg. Volume Value (2W)Avg. Volume Value (1M)Avg. Volume Value (3M)

IYG

iShares U.S. Financial Services ETF
$7.83M$11.59M$10.10M

XLF

State Street Financial Select Sector SPDR ETF
$1.84B$1.93B$1.92B

IYG vs. XLF - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IYG
iShares U.S. Financial Services ETF		4.15%19.85%31.94%16.07%-16.76%30.36%0.99%37.62%-12.56%24.47%
XLF
State Street Financial Select Sector SPDR ETF		4.86%14.90%30.56%12.03%-10.59%34.80%-1.74%31.88%-13.06%22.00%

Correlation

The correlation between IYG and XLF is 0.98 - they have historically moved very closely together. At this level, their price movements offset little of one another.

Correlation
Correlation (1Y)
Focuses on recent behavior, but can change the most.

0.98

Correlation (3Y)
Balances recent behavior with more history.

0.98

Correlation (5Y)
Shows whether the relationship held over a longer period.

0.97

Correlation (10Y)
Provides a long-term view across more market conditions.

0.97

Correlation (All Time)
Calculated using the full available price history since Jun 21, 2000

0.96

The correlation between IYG and XLF has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

IYG vs. XLF - Sectors Allocation Comparison

Sectors
IYG
XLF

Financial Services

100.0%
98.2%

Technology

0.0%
1.6%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Healthcare

-

-

Industrials

-

0.2%

Real Estate

-

-

Utilities

-

-

Financial Services

IYG
100.0%
XLF
98.2%

Technology

IYG
0.0%
XLF
1.6%

Basic Materials

IYG

-

XLF

-

Communication Services

IYG

-

XLF

-

Consumer Cyclical

IYG

-

XLF

-

Consumer Defensive

IYG

-

XLF

-

Energy

IYG

-

XLF

-

Healthcare

IYG

-

XLF

-

Industrials

IYG

-

XLF
0.2%

Real Estate

IYG

-

XLF

-

Utilities

IYG

-

XLF

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Financial Services ETF

State Street Financial Select Sector SPDR ETF

Often compared with IYG:
IYG vs. IYFIYG vs. IXGIYG vs. VFHIYG vs. FTXOIYG vs. GABFIYG vs. IYKIYG vs. FPE
Often compared with XLF:
XLF vs. SPYXLF vs. VFHXLF vs. KBWBXLF vs. XLVXLF vs. KREXLF vs. KBEXLF vs. JPM

Return for Risk

IYG vs. XLF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.
IYG
IYG Risk / Return Rank: 2626
Overall Rank
IYG Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
IYG Sortino Ratio Rank: 2727
Sortino Ratio Rank
IYG Omega Ratio Rank: 2828
Omega Ratio Rank
IYG Calmar Ratio Rank: 2323
Calmar Ratio Rank
IYG Martin Ratio Rank: 2424
Martin Ratio Rank
XLF
XLF Risk / Return Rank: 2727
Overall Rank
XLF Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
XLF Sortino Ratio Rank: 2828
Sortino Ratio Rank
XLF Omega Ratio Rank: 2828
Omega Ratio Rank
XLF Calmar Ratio Rank: 2424
Calmar Ratio Rank
XLF Martin Ratio Rank: 2424
Martin Ratio Rank
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.

IYG vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financial Services ETF (IYG) 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.

IYGXLFDifference
Sharpe ratioReturn per unit of total volatility
0.70
0.71

-0.01

Sortino ratioReturn per unit of downside risk
1.03
1.05

-0.02

Omega ratioGain probability vs. loss probability

1.13

1.13

0.00

Calmar ratioReturn relative to maximum drawdown

0.69

0.71

-0.01

Martin ratioReturn relative to average drawdown

1.76

1.80

-0.04

IYG vs. XLF - Sharpe Ratio Comparison

The current IYG Sharpe Ratio is 0.70, which is comparable to the XLF Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of IYG 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.

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Drawdowns

IYG vs. XLF - Drawdown Comparison

The maximum IYG drawdown since its inception was -81.84%, roughly equal to the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for IYG and XLF.

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Drawdown Indicators

IYGXLFDifference

Max Drawdown

Largest peak-to-trough decline

-81.84%

-82.69%

+0.85%

Max Drawdown (1Y)

Largest decline over 1 year

-15.90%

-14.79%

-1.11%

Max Drawdown (3Y)

Largest decline over 3 years

-18.54%

-15.54%

-3.00%

Max Drawdown (5Y)

Largest decline over 5 years

-29.62%

-25.81%

-3.81%

Max Drawdown (10Y)

Largest decline over 10 years

-44.32%

-42.86%

-1.46%

Current Drawdown

Current decline from peak

-0.80%

-1.15%

+0.35%

Average Drawdown

Average peak-to-trough decline

-20.64%

-19.92%

-0.72%

Ulcer Index

Depth and duration of drawdowns from previous peaks

6.25%

5.79%

+0.46%

Volatility

IYG vs. XLF - Volatility Comparison

iShares U.S. Financial Services ETF (IYG) has a higher volatility of 4.59% compared to State Street Financial Select Sector SPDR ETF (XLF) at 4.07%. This indicates that IYG'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.

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Volatility by Period

IYGXLFDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.59%

4.07%

+0.52%

Volatility (6M)

Calculated over the trailing 6-month period

12.00%

11.10%

+0.90%

Volatility (1Y)

Calculated over the trailing 1-year period

15.86%

14.77%

+1.09%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.33%

18.45%

+1.88%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.39%

22.08%

+1.31%

IYG vs. XLF - Expense Ratio Comparison

IYG has a 0.42% expense ratio, which is higher than XLF's 0.08% expense ratio.

Dividends

IYG vs. XLF - Dividend Comparison

IYG's dividend yield for the trailing twelve months is around 1.03%, less than XLF's 1.42% yield.

PositionTTM20252024202320222021202020192018201720162015
IYG
iShares U.S. Financial Services ETF		1.03%1.00%1.16%1.77%2.07%1.25%1.71%1.59%1.81%1.24%1.28%1.33%
XLF
State Street Financial Select Sector SPDR ETF		1.42%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

With a correlation of 0.98, IYG and XLF move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

IYG has higher volatility (4.59%) compared to XLF (4.07%). In terms of maximum drawdown, IYG dropped -81.84% vs XLF's -82.69%.

On 10-year performance, IYG leads with 14.87% vs 13.69% for XLF. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 4.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IYG has performed better with a 14.87% return vs 13.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLF is cheaper with a 0.08% expense ratio, compared with 0.42% for IYG.

XLF has the higher dividend yield at 1.42%, compared with 1.03% for IYG.

IYG tracks Dow Jones U.S. Financial Services TR, while XLF tracks Financial Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYG and 0.08% for XLF.

XLF currently has the higher Sharpe Ratio (0.71 vs 0.70), 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.

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