KCE vs. XLFI

Last updated Aug 4, 2026

KCE (SPDR S&P Capital Markets ETF) and XLFI (State Street Financial Select Sector SPDR Premium Income ETF) are both exchange-traded funds - KCE is a Financials Equities fund tracking the S&P Capital Markets Select Industry Index, while XLFI is a Derivative Income fund actively managed by State Street. KCE is passively managed, while XLFI is actively managed. Over the past year, KCE returned 11.58% vs 12.57% for XLFI. Their 0.76 correlation means they have sometimes moved together and sometimes differently. Both charge a 0.35% expense ratio.

Performance

KCE vs. XLFI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Capital Markets ETF (KCE) and State Street Financial Select Sector SPDR Premium Income ETF (XLFI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KCE achieves a 10.39% return, which is significantly higher than XLFI's 4.34% return.

KCE

• 1D: 2.41%
• 1M: 6.88%
• 6M: 6.20%
• YTD: 10.39%
• 1Y: 11.58%
• 3Y*: 24.32%
• 5Y*: 13.62%
• 10Y*: 17.63%
• ALL TIME*: 7.76%

XLFI

• 1D: 1.13%
• 1M: 3.25%
• 6M: 5.06%
• YTD: 4.34%
• 1Y: 12.57%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 9.86%

*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)
KCE SPDR S&P Capital Markets ETF	$2.49M	$2.29M	$2.43M
XLFI State Street Financial Select Sector SPDR Premium Income ETF	$182.20K	$220.07K	$173.47K

KCE vs. XLFI - Yearly Performance Comparison

	2026 (YTD)	2025
KCE SPDR S&P Capital Markets ETF	10.39%	-2.16%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	4.34%	5.40%

Correlation

The correlation between KCE and XLFI is 0.75, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.75
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.76

The correlation between KCE and XLFI has been stable across timeframes, ranging from 0.75 to 0.76 - a consistent structural relationship.

KCE vs. XLFI - Sectors Allocation Comparison

Sectors	KCE	XLFI
Financial Services	97.2%	100.4%
Technology	2.8%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KCE vs. XLFI — Risk / Return Rank

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

KCE

KCE Risk / Return Rank: 24
KCE Sharpe Ratio Rank: 25
KCE Sortino Ratio Rank: 25
KCE Omega Ratio Rank: 24
KCE Calmar Ratio Rank: 23
KCE Martin Ratio Rank: 23

XLFI

XLFI Risk / Return Rank: 35
XLFI Sharpe Ratio Rank: 39
XLFI Sortino Ratio Rank: 36
XLFI Omega Ratio Rank: 38
XLFI Calmar Ratio Rank: 30
XLFI Martin Ratio Rank: 31

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.

KCE vs. XLFI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Capital Markets ETF (KCE) and State Street Financial Select Sector SPDR Premium Income ETF (XLFI). 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.

	KCE	XLFI	Difference
Sharpe ratio: Return per unit of total volatility	0.56	1.07	-0.51
Sortino ratio: Return per unit of downside risk	0.90	1.45	-0.55
Omega ratio: Gain probability vs. loss probability	1.11	1.20	-0.09
Calmar ratio: Return relative to maximum drawdown	0.67	1.06	-0.39
Martin ratio: Return relative to average drawdown	1.70	2.98	-1.29

KCE vs. XLFI - Sharpe Ratio Comparison

The current KCE Sharpe Ratio is 0.56, which is lower than the XLFI Sharpe Ratio of 1.07. The chart below compares the historical Sharpe Ratios of KCE and XLFI, 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

KCE vs. XLFI - Drawdown Comparison

The maximum KCE drawdown since its inception was -74.00%, which is greater than XLFI's maximum drawdown of -11.89%. Use the drawdown chart below to compare losses from any high point for KCE and XLFI.

Drawdown Indicators

	KCE	XLFI	Difference
Max Drawdown Largest peak-to-trough decline	-74.00%	-11.89%	-62.11%
Max Drawdown (1Y) Largest decline over 1 year	-17.44%	-11.89%	-5.55%
Max Drawdown (3Y) Largest decline over 3 years	-26.31%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-34.45%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-40.78%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-22.65%	-3.01%	-19.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.84%	4.22%	+2.62%

Volatility

KCE vs. XLFI - Volatility Comparison

SPDR S&P Capital Markets ETF (KCE) has a higher volatility of 6.71% compared to State Street Financial Select Sector SPDR Premium Income ETF (XLFI) at 2.84%. This indicates that KCE's price experiences larger fluctuations and is considered to be riskier than XLFI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KCE	XLFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	2.84%	+3.87%
Volatility (6M) Calculated over the trailing 6-month period	16.07%	9.14%	+6.93%
Volatility (1Y) Calculated over the trailing 1-year period	20.73%	11.82%	+8.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.16%	11.88%	+11.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.89%	11.88%	+11.01%

KCE vs. XLFI - Expense Ratio Comparison

Both KCE and XLFI have an expense ratio of 0.35%.

Dividends

KCE vs. XLFI - Dividend Comparison

KCE's dividend yield for the trailing twelve months is around 1.63%, less than XLFI's 12.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KCE SPDR S&P Capital Markets ETF	1.63%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	12.13%	5.57%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KCE and XLFI in my portfolio?

KCE and XLFI have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KCE or XLFI?

KCE has higher volatility (6.71%) compared to XLFI (2.84%). In terms of maximum drawdown, KCE dropped -74.00% vs XLFI's -11.89%.

Which ETF is better, KCE or XLFI?

On 1-year performance, XLFI leads with 12.57% vs 11.58% for KCE. Both ETFs have the same 0.35% expense ratio. On volatility, XLFI has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KCE or XLFI?

Over the 1-year period, XLFI has performed better with a 12.57% return vs 11.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KCE or XLFI?

KCE and XLFI have the same expense ratio: 0.35% per year.

Which ETF pays a higher dividend yield, KCE or XLFI?

XLFI has the higher dividend yield at 12.13%, compared with 1.63% for KCE.

What is the main difference between KCE and XLFI?

KCE is categorized as Financials Equities, while XLFI is Derivative Income.

Which has better risk-adjusted returns?

XLFI currently has the higher Sharpe Ratio (1.07 vs 0.56), 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.