VFH vs. XLFI

Last updated Jul 15, 2026

VFH (Vanguard Financials ETF) and XLFI (State Street Financial Select Sector SPDR Premium Income ETF) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while XLFI is a Derivative Income fund actively managed by State Street. VFH is passively managed, while XLFI is actively managed. With a 0.96 correlation, they move nearly in lockstep. VFH charges 0.09%/yr vs 0.35%/yr for XLFI.

Performance

VFH vs. XLFI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Financials ETF (VFH) 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, VFH achieves a 4.08% return, which is significantly higher than XLFI's 2.12% return.

VFH

• 1D: 0.27%
• 1M: 5.75%
• 6M: 4.80%
• YTD: 4.08%
• 1Y: 9.15%
• 3Y*: 20.56%
• 5Y*: 11.10%
• 10Y*: 13.27%

XLFI

• 1D: 0.27%
• 1M: 3.76%
• 6M: 2.75%
• YTD: 2.12%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VFH vs. XLFI - Yearly Performance Comparison

	2026 (YTD)	2025
VFH Vanguard Financials ETF	4.08%	4.45%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	2.12%	5.40%

Correlation

The correlation between VFH and XLFI is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.96

VFH vs. XLFI - Sectors Allocation Comparison

Sectors	VFH	XLFI
Financial Services	96.8%	99.9%
Technology	2.1%	-
Real Estate	0.8%	-
Industrials	0.2%	-
Healthcare	0.1%	-
Communication Services	0.0%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Utilities	-	-

Return for Risk

VFH vs. XLFI — Risk / Return Rank

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

VFH

VFH Risk / Return Rank: 20
VFH Sharpe Ratio Rank: 21
VFH Sortino Ratio Rank: 20
VFH Omega Ratio Rank: 20
VFH Calmar Ratio Rank: 19
VFH Martin Ratio Rank: 19

XLFI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

VFH vs. XLFI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) 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.

	VFH	XLFI	Difference
Sharpe ratio: Return per unit of total volatility	0.61	—	—
Sortino ratio: Return per unit of downside risk	0.92	—	—
Omega ratio: Gain probability vs. loss probability	1.12	—	—
Calmar ratio: Return relative to maximum drawdown	0.62	—	—
Martin ratio: Return relative to average drawdown	1.61	—	—

Drawdowns

VFH vs. XLFI - Drawdown Comparison

The maximum VFH drawdown since its inception was -78.61%, which is greater than XLFI's maximum drawdown of -11.89%. Use the drawdown chart below to compare losses from any high point for VFH and XLFI.

Drawdown Indicators

	VFH	XLFI	Difference
Max Drawdown Largest peak-to-trough decline	-78.61%	-11.89%	-66.72%
Max Drawdown (1Y) Largest decline over 1 year	-14.75%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-17.30%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.42%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-18.46%	-3.16%	-15.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.69%	—	—

Volatility

Volatility by Period

	VFH	XLFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.09%	—	—
Volatility (6M) Calculated over the trailing 6-month period	11.51%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	15.06%	12.00%	+3.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.21%	12.00%	+7.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.47%	12.00%	+10.47%

VFH vs. XLFI - Expense Ratio Comparison

VFH has a 0.09% expense ratio, which is lower than XLFI's 0.35% expense ratio.

Dividends

VFH vs. XLFI - Dividend Comparison

VFH's dividend yield for the trailing twelve months is around 1.69%, less than XLFI's 11.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFH Vanguard Financials ETF	1.69%	1.55%	1.75%	2.08%	2.31%	1.87%	2.21%	2.17%	2.30%	1.53%	1.63%	2.00%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	11.41%	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 VFH and XLFI in my portfolio?

With a correlation of 0.96, VFH and XLFI 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.

Which ETF is better, VFH or XLFI?

On fees, VFH is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VFH or XLFI?

VFH is cheaper with a 0.09% expense ratio, compared with 0.35% for XLFI.

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

XLFI has the higher dividend yield at 11.41%, compared with 1.69% for VFH.

What is the main difference between VFH and XLFI?

VFH is categorized as Financials Equities, while XLFI is Derivative Income. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.09% for VFH and 0.35% for XLFI.