XLE vs. FAS

Last updated Jun 13, 2026

XLE (State Street Energy Select Sector SPDR ETF) and FAS (Direxion Daily Financial Bull 3X Shares) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while FAS is a Leveraged Equities fund tracking the Russell 1000 Financial Services Index (300%). Both are passively managed. Over the past 10 years, XLE returned 9.91%/yr vs 21.20%/yr for FAS. A 0.59 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 1.00%/yr for FAS.

Performance

XLE vs. FAS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Energy Select Sector SPDR ETF (XLE) and Direxion Daily Financial Bull 3X Shares (FAS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 29.56% return, which is significantly higher than FAS's -13.50% return. Over the past 10 years, XLE has underperformed FAS with an annualized return of 9.91%, while FAS has yielded a comparatively higher 21.20% annualized return.

XLE

• 1D: 0.75%
• 1M: -0.90%
• YTD: 29.56%
• 6M: 28.37%
• 1Y: 34.84%
• 3Y*: 16.18%
• 5Y*: 20.12%
• 10Y*: 9.91%

FAS

• 1D: 4.15%
• 1M: 10.95%
• YTD: -13.50%
• 6M: -13.89%
• 1Y: 7.93%
• 3Y*: 38.21%
• 5Y*: 7.30%
• 10Y*: 21.20%

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

XLE vs. FAS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	29.56%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
FAS Direxion Daily Financial Bull 3X Shares	-13.50%	21.48%	84.47%	14.92%	-43.19%	116.59%	-34.97%	113.04%	-33.84%	67.37%

Correlation

The correlation between XLE and FAS is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.59

The correlation between XLE and FAS shifts across timeframes, from -0.02 (1 year) to 0.59 (all time), reflecting how their relationship changes across market environments.

XLE vs. FAS - Sectors Allocation Comparison

Sectors	XLE	FAS
Energy	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	98.0%
Healthcare	-	-
Industrials	-	0.2%
Real Estate	-	-
Technology	-	1.7%
Utilities	-	-

Return for Risk

XLE vs. FAS — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 61
XLE Sharpe Ratio Rank: 64
XLE Sortino Ratio Rank: 58
XLE Omega Ratio Rank: 54
XLE Calmar Ratio Rank: 71
XLE Martin Ratio Rank: 56

FAS

FAS Risk / Return Rank: 11
FAS Sharpe Ratio Rank: 10
FAS Sortino Ratio Rank: 11
FAS Omega Ratio Rank: 12
FAS Calmar Ratio Rank: 10
FAS Martin Ratio Rank: 10

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.

XLE vs. FAS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and Direxion Daily Financial Bull 3X Shares (FAS). 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.

	XLE	FAS	Difference
Sharpe ratio: Return per unit of total volatility	1.82	0.03	+1.79
Sortino ratio: Return per unit of downside risk	2.40	0.34	+2.06
Omega ratio: Gain probability vs. loss probability	1.30	1.04	+0.25
Calmar ratio: Return relative to maximum drawdown	3.10	0.03	+3.07
Martin ratio: Return relative to average drawdown	8.63	0.08	+8.56

XLE vs. FAS - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.82, which is higher than the FAS Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of XLE and FAS, 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

XLE vs. FAS - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum FAS drawdown of -91.61%. Use the drawdown chart below to compare losses from any high point for XLE and FAS.

Drawdown Indicators

	XLE	FAS	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-91.61%	+20.35%
Max Drawdown (1Y) Largest decline over 1 year	-12.05%	-40.88%	+28.83%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-43.10%	+22.96%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-66.88%	+40.84%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-85.99%	+19.18%
Current Drawdown Current decline from peak	-8.01%	-20.63%	+12.62%
Average Drawdown Average peak-to-trough decline	-17.97%	-31.12%	+13.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	17.97%	-13.65%

Volatility

XLE vs. FAS - Volatility Comparison

The current volatility for State Street Energy Select Sector SPDR ETF (XLE) is 7.26%, while Direxion Daily Financial Bull 3X Shares (FAS) has a volatility of 12.45%. This indicates that XLE experiences smaller price fluctuations and is considered to be less risky than FAS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	FAS	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.26%	12.45%	-5.19%
Volatility (6M) Calculated over the trailing 6-month period	16.79%	33.46%	-16.67%
Volatility (1Y) Calculated over the trailing 1-year period	20.57%	43.61%	-23.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.05%	55.59%	-29.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.58%	61.33%	-31.75%

XLE vs. FAS - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is lower than FAS's 1.00% expense ratio.

Dividends

XLE vs. FAS - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.59%, less than FAS's 9.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAS Direxion Daily Financial Bull 3X Shares	9.64%	8.21%	0.76%	1.77%	0.91%	0.60%	0.47%	0.62%	1.43%	0.11%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.59%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both XLE and FAS in my portfolio?

XLE and FAS have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLE or FAS?

FAS has higher volatility (12.45%) compared to XLE (7.26%). In terms of maximum drawdown, XLE dropped -71.26% vs FAS's -91.61%.

Which ETF is better, XLE or FAS?

On 10-year performance, FAS leads with 21.20% vs 9.91% for XLE. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 7.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or FAS?

Over the 10-year period, FAS has performed better with a 21.20% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or FAS?

XLE is cheaper with a 0.08% expense ratio, compared with 1.00% for FAS.

Which ETF pays a higher dividend yield, XLE or FAS?

FAS has the higher dividend yield at 9.64%, compared with 2.59% for XLE.

What is the main difference between XLE and FAS?

XLE is categorized as Energy Equities, while FAS is Leveraged Equities. XLE tracks Energy Select Sector Index, while FAS tracks Russell 1000 Financial Services Index (300%). They also come from different issuers: State Street and Direxion. Their fees differ too: 0.08% for XLE and 1.00% for FAS.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.82 vs 0.03), 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.