VFH vs. XLFI

Last updated Aug 5, 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. Over the past year, VFH returned 13.83% vs 11.89% for XLFI. Their 0.96 correlation means they have historically moved very closely together. 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 7.22% return, which is significantly higher than XLFI's 4.70% return.

VFH

• 1D: 0.89%
• 1M: 4.10%
• 6M: 9.11%
• YTD: 7.22%
• 1Y: 13.83%
• 3Y*: 20.82%
• 5Y*: 11.42%
• 10Y*: 13.37%
• ALL TIME*: 7.02%

XLFI

• 1D: 0.34%
• 1M: 3.60%
• 6M: 6.29%
• YTD: 4.70%
• 1Y: 11.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 10.21%

*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)
VFH Vanguard Financials ETF	$53.77M	$71.76M	$72.54M
XLFI State Street Financial Select Sector SPDR Premium Income ETF	$183.60K	$216.70K	$174.14K

VFH vs. XLFI - Yearly Performance Comparison

	2026 (YTD)	2025
VFH Vanguard Financials ETF	7.22%	4.45%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	4.70%	5.40%

Correlation

The correlation between VFH and XLFI is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.96

The correlation between VFH and XLFI has been stable across timeframes, ranging from 0.96 to 0.96 - a consistent structural relationship.

VFH vs. XLFI - Sectors Allocation Comparison

Sectors	VFH	XLFI
Financial Services	97.0%	100.4%
Technology	2.0%	-
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 historical risk-adjusted metric ranks over the past 12 months.

VFH

VFH Risk / Return Rank: 31
VFH Sharpe Ratio Rank: 34
VFH Sortino Ratio Rank: 32
VFH Omega Ratio Rank: 32
VFH Calmar Ratio Rank: 27
VFH Martin Ratio Rank: 27

XLFI

XLFI Risk / Return Rank: 32
XLFI Sharpe Ratio Rank: 36
XLFI Sortino Ratio Rank: 33
XLFI Omega Ratio Rank: 35
XLFI Calmar Ratio Rank: 28
XLFI Martin Ratio Rank: 29

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.

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	0.93	1.02	-0.08
Sortino ratio: Return per unit of downside risk	1.34	1.38	-0.04
Omega ratio: Gain probability vs. loss probability	1.17	1.19	-0.02
Calmar ratio: Return relative to maximum drawdown	0.94	1.00	-0.06
Martin ratio: Return relative to average drawdown	2.45	2.82	-0.38

VFH vs. XLFI - Sharpe Ratio Comparison

The current VFH Sharpe Ratio is 0.93, which is comparable to the XLFI Sharpe Ratio of 1.02. The chart below compares the historical Sharpe Ratios of VFH 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

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%	-11.89%	-2.86%
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	-18.42%	-3.00%	-15.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	4.22%	+1.45%

Volatility

VFH vs. XLFI - Volatility Comparison

Vanguard Financials ETF (VFH) has a higher volatility of 3.94% compared to State Street Financial Select Sector SPDR Premium Income ETF (XLFI) at 2.83%. This indicates that VFH'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

	VFH	XLFI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.94%	2.83%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	11.22%	9.10%	+2.12%
Volatility (1Y) Calculated over the trailing 1-year period	14.96%	11.80%	+3.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.13%	11.86%	+7.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.48%	11.86%	+10.62%

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 1.64%, less than XLFI's 12.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFH Vanguard Financials ETF	1.64%	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	12.09%	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 is riskier, VFH or XLFI?

VFH has higher volatility (3.94%) compared to XLFI (2.83%). In terms of maximum drawdown, VFH dropped -78.61% vs XLFI's -11.89%.

Which ETF is better, VFH or XLFI?

On 1-year performance, VFH leads with 13.83% vs 11.89% for XLFI. On fees, VFH is cheaper at 0.09% per year. On volatility, XLFI 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, VFH or XLFI?

Over the 1-year period, VFH has performed better with a 13.83% return vs 11.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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 12.09%, compared with 1.64% 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.

Which has better risk-adjusted returns?

XLFI currently has the higher Sharpe Ratio (1.01 vs 0.93), 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.