SEF vs. KBWB

Last updated Jun 24, 2026

SEF (ProShares Short Financials) and KBWB (Invesco KBW Bank ETF) are both exchange-traded funds - SEF is a Inverse Equities fund tracking the Dow Jones U.S. Financials Index (-100%), while KBWB is a Financials Equities fund tracking the KBW Nasdaq Bank Index. Both are passively managed. Over the past 10 years, SEF returned -12.45%/yr vs 14.07%/yr for KBWB. At a correlation of -0.89, they often move in opposite directions. SEF charges 0.95%/yr vs 0.35%/yr for KBWB.

Performance

SEF vs. KBWB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Short Financials (SEF) and Invesco KBW Bank ETF (KBWB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SEF achieves a 2.80% return, which is significantly lower than KBWB's 12.95% return. Over the past 10 years, SEF has underperformed KBWB with an annualized return of -12.45%, while KBWB has yielded a comparatively higher 14.07% annualized return.

SEF

• 1D: -0.25%
• 1M: -3.52%
• YTD: 2.80%
• 6M: 4.11%
• 1Y: -2.58%
• 3Y*: -12.09%
• 5Y*: -6.78%
• 10Y*: -12.45%

KBWB

• 1D: 0.68%
• 1M: 9.33%
• YTD: 12.95%
• 6M: 10.99%
• 1Y: 40.49%
• 3Y*: 37.07%
• 5Y*: 10.98%
• 10Y*: 14.07%

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

SEF vs. KBWB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SEF ProShares Short Financials	2.80%	-9.82%	-17.81%	-8.81%	11.85%	-27.02%	-16.93%	-23.51%	10.34%	-17.12%
KBWB Invesco KBW Bank ETF	12.95%	32.05%	36.73%	-1.18%	-21.68%	37.72%	-10.46%	35.90%	-18.30%	18.11%

Correlation

The correlation between SEF and KBWB is -0.85, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.85
Correlation (3Y) Calculated over the trailing 3-year period	-0.86
Correlation (5Y) Calculated over the trailing 5-year period	-0.89
Correlation (10Y) Calculated over the trailing 10-year period	-0.89
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011	-0.89

The correlation between SEF and KBWB has been stable across timeframes, ranging from -0.89 to -0.85 - a consistent structural relationship.

SEF vs. KBWB - Sectors Allocation Comparison

Sectors	SEF	KBWB
Financial Services	71.2%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SEF vs. KBWB — Risk / Return Rank

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

SEF

SEF Risk / Return Rank: 7
SEF Sharpe Ratio Rank: 7
SEF Sortino Ratio Rank: 7
SEF Omega Ratio Rank: 7
SEF Calmar Ratio Rank: 7
SEF Martin Ratio Rank: 7

KBWB

KBWB Risk / Return Rank: 56
KBWB Sharpe Ratio Rank: 64
KBWB Sortino Ratio Rank: 58
KBWB Omega Ratio Rank: 59
KBWB Calmar Ratio Rank: 52
KBWB Martin Ratio Rank: 48

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.

SEF vs. KBWB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Short Financials (SEF) and Invesco KBW Bank ETF (KBWB). 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.

	SEF	KBWB	Difference
Sharpe ratio: Return per unit of total volatility	-0.18	2.01	-2.19
Sortino ratio: Return per unit of downside risk	-0.16	2.62	-2.78
Omega ratio: Gain probability vs. loss probability	0.98	1.35	-0.37
Calmar ratio: Return relative to maximum drawdown	-0.23	2.48	-2.72
Martin ratio: Return relative to average drawdown	-0.55	7.81	-8.36

SEF vs. KBWB - Sharpe Ratio Comparison

The current SEF Sharpe Ratio is -0.18, which is lower than the KBWB Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of SEF and KBWB, 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

SEF vs. KBWB - Drawdown Comparison

The maximum SEF drawdown since its inception was -96.51%, which is greater than KBWB's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for SEF and KBWB.

Drawdown Indicators

	SEF	KBWB	Difference
Max Drawdown Largest peak-to-trough decline	-96.51%	-50.27%	-46.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.14%	-16.38%	+5.24%
Max Drawdown (3Y) Largest decline over 3 years	-39.40%	-25.43%	-13.97%
Max Drawdown (5Y) Largest decline over 5 years	-41.62%	-49.31%	+7.69%
Max Drawdown (10Y) Largest decline over 10 years	-75.66%	-50.27%	-25.39%
Current Drawdown Current decline from peak	-96.31%	0.00%	-96.31%
Average Drawdown Average peak-to-trough decline	-82.74%	-11.70%	-71.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.81%	5.20%	-0.39%

Volatility

SEF vs. KBWB - Volatility Comparison

The current volatility for ProShares Short Financials (SEF) is 4.04%, while Invesco KBW Bank ETF (KBWB) has a volatility of 5.65%. This indicates that SEF experiences smaller price fluctuations and is considered to be less risky than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SEF	KBWB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.04%	5.65%	-1.61%
Volatility (6M) Calculated over the trailing 6-month period	11.16%	15.89%	-4.73%
Volatility (1Y) Calculated over the trailing 1-year period	14.51%	20.26%	-5.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.97%	26.55%	-8.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.48%	29.12%	-8.64%

SEF vs. KBWB - Expense Ratio Comparison

SEF has a 0.95% expense ratio, which is higher than KBWB's 0.35% expense ratio.

Dividends

SEF vs. KBWB - Dividend Comparison

SEF's dividend yield for the trailing twelve months is around 3.54%, more than KBWB's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	1.97%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
SEF ProShares Short Financials	3.54%	4.33%	5.72%	4.43%	0.39%	0.00%	0.12%	1.25%	0.41%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SEF and KBWB in my portfolio?

SEF and KBWB have a correlation of -0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SEF or KBWB?

KBWB has higher volatility (5.65%) compared to SEF (4.04%). In terms of maximum drawdown, SEF dropped -96.51% vs KBWB's -50.27%.

Which ETF is better, SEF or KBWB?

On 10-year performance, KBWB leads with 14.07% vs -12.45% for SEF. On fees, KBWB is cheaper at 0.35% per year. On volatility, SEF has been the lower-risk option at 4.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SEF or KBWB?

Over the 10-year period, KBWB has performed better with a 14.07% return vs -12.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SEF or KBWB?

KBWB is cheaper with a 0.35% expense ratio, compared with 0.95% for SEF.

Which ETF pays a higher dividend yield, SEF or KBWB?

SEF has the higher dividend yield at 3.54%, compared with 1.97% for KBWB.

What is the main difference between SEF and KBWB?

SEF is categorized as Inverse Equities, while KBWB is Financials Equities. SEF tracks Dow Jones U.S. Financials Index (-100%), while KBWB tracks KBW Nasdaq Bank Index. They also come from different issuers: ProShares and Invesco. Their fees differ too: 0.95% for SEF and 0.35% for KBWB.

Which has better risk-adjusted returns?

KBWB currently has the higher Sharpe Ratio (2.01 vs -0.18), 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.