XLF vs. FCOM

Last updated Jun 13, 2026

XLF (State Street Financial Select Sector SPDR ETF) and FCOM (Fidelity MSCI Communication Services Index ETF) are both exchange-traded funds - XLF is a Financials Equities fund tracking the Financial Select Sector Index, while FCOM is a Large Cap Growth Equities fund tracking the MSCI USA IMI Telecommunication Services 25/50 Index. Both are passively managed. Over the past 10 years, XLF returned 13.33%/yr vs 11.60%/yr for FCOM. A 0.56 correlation means they provide meaningful diversification when combined. Both charge a 0.08% expense ratio.

Performance

XLF vs. FCOM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR ETF (XLF) and Fidelity MSCI Communication Services Index ETF (FCOM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLF achieves a -2.11% return, which is significantly higher than FCOM's -3.17% return. Over the past 10 years, XLF has outperformed FCOM with an annualized return of 13.33%, while FCOM has yielded a comparatively lower 11.60% annualized return.

XLF

• 1D: 1.37%
• 1M: 4.61%
• YTD: -2.11%
• 6M: -2.09%
• 1Y: 6.20%
• 3Y*: 18.86%
• 5Y*: 9.15%
• 10Y*: 13.33%

FCOM

• 1D: 0.08%
• 1M: -4.97%
• YTD: -3.17%
• 6M: -1.90%
• 1Y: 14.88%
• 3Y*: 22.19%
• 5Y*: 6.79%
• 10Y*: 11.60%

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

XLF vs. FCOM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLF State Street Financial Select Sector SPDR ETF	-2.11%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%
FCOM Fidelity MSCI Communication Services Index ETF	-3.17%	26.06%	33.05%	44.65%	-38.97%	13.88%	28.33%	26.69%	-5.33%	8.20%

Correlation

The correlation between XLF and FCOM is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.56

The correlation between XLF and FCOM has been stable across timeframes, ranging from 0.50 to 0.60 - a consistent structural relationship.

XLF vs. FCOM - Sectors Allocation Comparison

Sectors	XLF	FCOM
Financial Services	98.0%	-
Technology	1.8%	1.2%
Industrials	0.2%	-
Basic Materials	-	-
Communication Services	-	98.5%
Consumer Cyclical	-	0.3%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	0.1%
Utilities	-	-

Return for Risk

XLF vs. FCOM — Risk / Return Rank

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

XLF

XLF Risk / Return Rank: 15
XLF Sharpe Ratio Rank: 17
XLF Sortino Ratio Rank: 15
XLF Omega Ratio Rank: 15
XLF Calmar Ratio Rank: 15
XLF Martin Ratio Rank: 15

FCOM

FCOM Risk / Return Rank: 30
FCOM Sharpe Ratio Rank: 30
FCOM Sortino Ratio Rank: 31
FCOM Omega Ratio Rank: 29
FCOM Calmar Ratio Rank: 26
FCOM Martin Ratio Rank: 31

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.

XLF vs. FCOM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR ETF (XLF) and Fidelity MSCI Communication Services Index ETF (FCOM). 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.

	XLF	FCOM	Difference
Sharpe ratio: Return per unit of total volatility	0.42	0.97	-0.55
Sortino ratio: Return per unit of downside risk	0.67	1.49	-0.82
Omega ratio: Gain probability vs. loss probability	1.08	1.18	-0.09
Calmar ratio: Return relative to maximum drawdown	0.42	1.11	-0.69
Martin ratio: Return relative to average drawdown	1.08	4.05	-2.97

XLF vs. FCOM - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.42, which is lower than the FCOM Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of XLF and FCOM, 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

XLF vs. FCOM - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, which is greater than FCOM's maximum drawdown of -46.76%. Use the drawdown chart below to compare losses from any high point for XLF and FCOM.

Drawdown Indicators

	XLF	FCOM	Difference
Max Drawdown Largest peak-to-trough decline	-82.69%	-46.76%	-35.93%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-13.48%	-1.31%
Max Drawdown (3Y) Largest decline over 3 years	-15.54%	-21.16%	+5.62%
Max Drawdown (5Y) Largest decline over 5 years	-25.81%	-46.76%	+20.95%
Max Drawdown (10Y) Largest decline over 10 years	-42.86%	-46.76%	+3.90%
Current Drawdown Current decline from peak	-4.94%	-6.40%	+1.46%
Average Drawdown Average peak-to-trough decline	-20.01%	-8.66%	-11.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.76%	3.68%	+2.08%

Volatility

XLF vs. FCOM - Volatility Comparison

State Street Financial Select Sector SPDR ETF (XLF) and Fidelity MSCI Communication Services Index ETF (FCOM) have volatilities of 4.23% and 4.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLF	FCOM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	4.08%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	11.26%	11.19%	+0.07%
Volatility (1Y) Calculated over the trailing 1-year period	14.69%	15.43%	-0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.66%	21.19%	-2.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.17%	20.96%	+1.21%

XLF vs. FCOM - Expense Ratio Comparison

Both XLF and FCOM have an expense ratio of 0.08%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

XLF vs. FCOM - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.49%, more than FCOM's 0.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCOM Fidelity MSCI Communication Services Index ETF	0.96%	0.88%	0.87%	0.77%	1.04%	0.90%	0.68%	0.86%	2.78%	11.70%	2.27%	2.92%
XLF State Street Financial Select Sector SPDR ETF	1.49%	1.31%	1.42%	1.71%	2.04%	1.63%	2.03%	1.87%	2.08%	1.48%	21.10%	1.95%

Frequently Asked Questions

Can I hold both XLF and FCOM in my portfolio?

XLF and FCOM have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLF or FCOM?

XLF has higher volatility (4.23%) compared to FCOM (4.08%). In terms of maximum drawdown, XLF dropped -82.69% vs FCOM's -46.76%.

Which ETF is better, XLF or FCOM?

On 10-year performance, XLF leads with 13.33% vs 11.60% for FCOM. Both ETFs have the same 0.08% expense ratio. On volatility, FCOM has been the lower-risk option at 4.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLF or FCOM?

Over the 10-year period, XLF has performed better with a 13.33% return vs 11.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLF or FCOM?

XLF and FCOM have the same expense ratio: 0.08% per year.

Which ETF pays a higher dividend yield, XLF or FCOM?

XLF has the higher dividend yield at 1.49%, compared with 0.96% for FCOM.

What is the main difference between XLF and FCOM?

XLF is categorized as Financials Equities, while FCOM is Large Cap Growth Equities. XLF tracks Financial Select Sector Index, while FCOM tracks MSCI USA IMI Telecommunication Services 25/50 Index. They also come from different issuers: State Street and Fidelity.

Which has better risk-adjusted returns?

FCOM currently has the higher Sharpe Ratio (0.97 vs 0.42), 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.