WFC vs. XLF
Compare and contrast key facts about Wells Fargo & Company (WFC) and Financial Select Sector SPDR Fund (XLF).
XLF is a passively managed fund by State Street that tracks the performance of the Financial Select Sector Index. It was launched on Dec 16, 1998.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: WFC or XLF.
Key characteristics
| WFC | XLF | |
|---|---|---|
| YTD Return | 22.41% | 8.01% |
| 1Y Return | 59.75% | 28.85% |
| 3Y Return (Ann) | 12.23% | 5.52% |
| 5Y Return (Ann) | 7.29% | 9.81% |
| 10Y Return (Ann) | 4.90% | 13.16% |
| Sharpe Ratio | 2.48 | 2.17 |
| Daily Std Dev | 23.76% | 12.59% |
| Max Drawdown | -79.02% | -82.43% |
| Current Drawdown | -2.08% | -3.94% |
Correlation
The correlation between WFC and XLF is 0.80, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
WFC vs. XLF - Performance Comparison
In the year-to-date period, WFC achieves a 22.41% return, which is significantly higher than XLF's 8.01% return. Over the past 10 years, WFC has underperformed XLF with an annualized return of 4.90%, while XLF has yielded a comparatively higher 13.16% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
WFC vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Wells Fargo & Company (WFC) and Financial Select Sector SPDR Fund (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.
Dividends
WFC vs. XLF - Dividend Comparison
WFC's dividend yield for the trailing twelve months is around 2.26%, more than XLF's 1.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
WFC Wells Fargo & Company | 2.26% | 2.64% | 2.66% | 1.25% | 4.04% | 3.57% | 3.56% | 2.54% | 2.75% | 2.71% | 2.46% | 2.53% |
XLF Financial Select Sector SPDR Fund | 1.59% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
WFC vs. XLF - Drawdown Comparison
The maximum WFC drawdown since its inception was -79.02%, roughly equal to the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for WFC and XLF. For additional features, visit the drawdowns tool.
Volatility
WFC vs. XLF - Volatility Comparison
Wells Fargo & Company (WFC) has a higher volatility of 5.20% compared to Financial Select Sector SPDR Fund (XLF) at 3.68%. This indicates that WFC's price experiences larger fluctuations and is considered to be riskier than XLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.