KBE vs. XLF
Compare and contrast key facts about SPDR S&P Bank ETF (KBE) and Financial Select Sector SPDR Fund (XLF).
KBE and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. KBE is a passively managed fund by State Street that tracks the performance of the S&P Banks Select Industry Index. It was launched on Nov 8, 2005. 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 KBE 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: KBE or XLF.
Key characteristics
| KBE | XLF | |
|---|---|---|
| YTD Return | 4.88% | 12.60% |
| 1Y Return | 41.39% | 32.10% |
| 3Y Return (Ann) | -1.44% | 5.56% |
| 5Y Return (Ann) | 5.06% | 11.70% |
| 10Y Return (Ann) | 6.77% | 13.65% |
| Sharpe Ratio | 1.64 | 2.84 |
| Daily Std Dev | 25.80% | 12.24% |
| Max Drawdown | -83.15% | -82.43% |
| Current Drawdown | -15.04% | 0.00% |
Correlation
The correlation between KBE 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
KBE vs. XLF - Performance Comparison
In the year-to-date period, KBE achieves a 4.88% return, which is significantly lower than XLF's 12.60% return. Over the past 10 years, KBE has underperformed XLF with an annualized return of 6.77%, while XLF has yielded a comparatively higher 13.65% 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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KBE vs. XLF - Expense Ratio Comparison
KBE has a 0.35% expense ratio, which is higher than XLF's 0.13% expense ratio.
Risk-Adjusted Performance
KBE vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Bank ETF (KBE) 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
KBE vs. XLF - Dividend Comparison
KBE's dividend yield for the trailing twelve months is around 2.76%, more than XLF's 1.52% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBE SPDR S&P Bank ETF | 2.76% | 2.78% | 2.99% | 2.16% | 2.44% | 2.33% | 2.18% | 1.36% | 1.39% | 1.70% | 1.59% | 1.37% |
XLF Financial Select Sector SPDR Fund | 1.52% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
KBE vs. XLF - Drawdown Comparison
The maximum KBE drawdown since its inception was -83.15%, roughly equal to the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for KBE and XLF. For additional features, visit the drawdowns tool.
Volatility
KBE vs. XLF - Volatility Comparison
SPDR S&P Bank ETF (KBE) has a higher volatility of 4.70% compared to Financial Select Sector SPDR Fund (XLF) at 2.75%. This indicates that KBE'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.