NZUS vs. XLF

Last updated Jun 5, 2026

NZUS (SPDR MSCI USA Climate Paris Aligned ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both exchange-traded funds - NZUS is a Large Cap Growth Equities fund tracking the MSCI USA Climate Paris Aligned Index, while XLF is a Financials Equities fund tracking the Financial Select Sector Index. Both are passively managed. Over the past 3 years, NZUS returned 20.11%/yr vs 18.85%/yr for XLF. A 0.70 correlation means they provide meaningful diversification when combined. NZUS charges 0.10%/yr vs 0.08%/yr for XLF.

Performance

NZUS vs. XLF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR MSCI USA Climate Paris Aligned ETF (NZUS) 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, NZUS achieves a 5.51% return, which is significantly higher than XLF's -4.22% return.

NZUS

• 1D: 0.00%
• 1M: 2.22%
• YTD: 5.51%
• 6M: 5.38%
• 1Y: 19.75%
• 3Y*: 20.11%
• 5Y*: —
• 10Y*: —

XLF

• 1D: 2.59%
• 1M: 1.16%
• YTD: -4.22%
• 6M: -1.90%
• 1Y: 4.34%
• 3Y*: 18.85%
• 5Y*: 8.16%
• 10Y*: 12.60%

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

NZUS vs. XLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
NZUS SPDR MSCI USA Climate Paris Aligned ETF	5.51%	13.95%	24.34%	29.16%	-14.34%
XLF State Street Financial Select Sector SPDR ETF	-4.22%	14.90%	30.56%	12.03%	-6.28%

Correlation

The correlation between NZUS and XLF is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (All Time) Calculated using the full available price history since Apr 19, 2022	0.70

The correlation between NZUS and XLF shifts across timeframes, from 0.57 (1 year) to 0.70 (all time), reflecting how their relationship changes across market environments.

NZUS vs. XLF - Sectors Allocation Comparison

Sectors	NZUS	XLF
Technology	45.3%	1.8%
Financial Services	11.9%	98.0%
Real Estate	10.5%	-
Communication Services	9.7%	-
Consumer Cyclical	9.5%	-
Healthcare	7.8%	-
Industrials	2.1%	0.2%
Utilities	1.6%	-
Energy	0.8%	-
Basic Materials	0.5%	-
Consumer Defensive	-	-

Return for Risk

NZUS vs. XLF — Risk / Return Rank

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

NZUS

NZUS Risk / Return Rank: 47
NZUS Sharpe Ratio Rank: 52
NZUS Sortino Ratio Rank: 51
NZUS Omega Ratio Rank: 52
NZUS Calmar Ratio Rank: 38
NZUS Martin Ratio Rank: 43

XLF

XLF Risk / Return Rank: 13
XLF Sharpe Ratio Rank: 14
XLF Sortino Ratio Rank: 13
XLF Omega Ratio Rank: 13
XLF Calmar Ratio Rank: 13
XLF Martin Ratio Rank: 13

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.

NZUS vs. XLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI USA Climate Paris Aligned ETF (NZUS) 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.

	NZUS	XLF	Difference
Sharpe ratio: Return per unit of total volatility	1.75	0.30	+1.45
Sortino ratio: Return per unit of downside risk	2.47	0.50	+1.97
Omega ratio: Gain probability vs. loss probability	1.32	1.06	+0.25
Calmar ratio: Return relative to maximum drawdown	1.85	0.29	+1.56
Martin ratio: Return relative to average drawdown	6.83	0.77	+6.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NZUS vs. XLF - Sharpe Ratio Comparison

The current NZUS Sharpe Ratio is 1.75, which is higher than the XLF Sharpe Ratio of 0.30. The chart below compares the historical Sharpe Ratios of NZUS 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.

Sharpe Ratios by Period

	NZUS	XLF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	0.30	+1.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.44	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.57	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.21	+0.50

Drawdowns

NZUS vs. XLF - Drawdown Comparison

The maximum NZUS drawdown since its inception was -20.99%, smaller than the maximum XLF drawdown of -82.69%. Use the drawdown chart below to compare losses from any high point for NZUS and XLF.

Drawdown Indicators

	NZUS	XLF	Difference
Max Drawdown Largest peak-to-trough decline	-20.99%	-82.69%	+61.70%
Max Drawdown (1Y) Largest decline over 1 year	-12.43%	-14.79%	+2.36%
Max Drawdown (3Y) Largest decline over 3 years	-20.99%	-15.54%	-5.45%
Max Drawdown (5Y) Largest decline over 5 years	—	-25.81%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.86%	—
Current Drawdown Current decline from peak	-0.42%	-6.99%	+6.57%
Average Drawdown Average peak-to-trough decline	-4.82%	-20.02%	+15.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.36%	5.68%	-2.32%

Volatility

NZUS vs. XLF - Volatility Comparison

The current volatility for SPDR MSCI USA Climate Paris Aligned ETF (NZUS) is 2.83%, while State Street Financial Select Sector SPDR ETF (XLF) has a volatility of 4.21%. This indicates that NZUS 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

	NZUS	XLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.83%	4.21%	-1.38%
Volatility (6M) Calculated over the trailing 6-month period	10.09%	11.24%	-1.15%
Volatility (1Y) Calculated over the trailing 1-year period	13.27%	14.63%	-1.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.61%	18.66%	-0.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.61%	22.17%	-3.56%

NZUS vs. XLF - Expense Ratio Comparison

NZUS has a 0.10% expense ratio, which is higher than XLF's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

NZUS vs. XLF - Dividend Comparison

NZUS's dividend yield for the trailing twelve months is around 0.60%, less than XLF's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NZUS SPDR MSCI USA Climate Paris Aligned ETF	0.60%	0.89%	5.49%	1.07%	1.22%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLF State Street Financial Select Sector SPDR ETF	1.52%	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 NZUS and XLF in my portfolio?

NZUS and XLF have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NZUS or XLF?

XLF has higher volatility (4.21%) compared to NZUS (2.83%). In terms of maximum drawdown, NZUS dropped -20.99% vs XLF's -82.69%.

Which ETF is better, NZUS or XLF?

On 3-year performance, NZUS leads with 20.11% vs 18.85% for XLF. On fees, XLF is cheaper at 0.08% per year. On volatility, NZUS has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NZUS or XLF?

Over the 3-year period, NZUS has performed better with a 20.11% return vs 18.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NZUS or XLF?

XLF is cheaper with a 0.08% expense ratio, compared with 0.10% for NZUS.

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

XLF has the higher dividend yield at 1.52%, compared with 0.60% for NZUS.

What is the main difference between NZUS and XLF?

NZUS is categorized as Large Cap Growth Equities, while XLF is Financials Equities. NZUS tracks MSCI USA Climate Paris Aligned Index, while XLF tracks Financial Select Sector Index. Their fees differ too: 0.10% for NZUS and 0.08% for XLF.

Which has better risk-adjusted returns?

NZUS currently has the higher Sharpe Ratio (1.75 vs 0.30), 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.