XLF vs. IYF

Last updated Jun 13, 2026

XLF (State Street Financial Select Sector SPDR ETF) and IYF (iShares U.S. Financials ETF) are both Financials Equities funds - XLF tracks the Financial Select Sector Index while IYF tracks the Dow Jones U.S. Financials Index. Both are passively managed. Over the past 10 years, XLF returned 13.33%/yr vs 13.53%/yr for IYF. With a 0.97 correlation, they move nearly in lockstep. XLF charges 0.08%/yr vs 0.42%/yr for IYF.

Performance

XLF vs. IYF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR ETF (XLF) and iShares U.S. Financials ETF (IYF). 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 lower than IYF's -0.19% return. Both investments have delivered pretty close results over the past 10 years, with XLF having a 13.33% annualized return and IYF not far ahead at 13.53%.

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%

IYF

• 1D: 1.38%
• 1M: 5.17%
• YTD: -0.19%
• 6M: -0.21%
• 1Y: 12.18%
• 3Y*: 21.71%
• 5Y*: 10.87%
• 10Y*: 13.53%

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

XLF vs. IYF - 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%
IYF iShares U.S. Financials ETF	-0.19%	18.25%	31.30%	15.32%	-11.33%	31.60%	-1.00%	31.86%	-9.39%	19.58%

Correlation

The correlation between XLF and IYF is 0.97 - 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 (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since May 26, 2000	0.97

The correlation between XLF and IYF has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

XLF vs. IYF - Sectors Allocation Comparison

Sectors	XLF	IYF
Financial Services	98.0%	99.0%
Technology	1.8%	0.3%
Industrials	0.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	0.7%
Utilities	-	-

Return for Risk

XLF vs. IYF — 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

IYF

IYF Risk / Return Rank: 24
IYF Sharpe Ratio Rank: 27
IYF Sortino Ratio Rank: 25
IYF Omega Ratio Rank: 25
IYF Calmar Ratio Rank: 22
IYF Martin Ratio Rank: 22

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. IYF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR ETF (XLF) and iShares U.S. Financials ETF (IYF). 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	IYF	Difference
Sharpe ratio: Return per unit of total volatility	0.42	0.84	-0.41
Sortino ratio: Return per unit of downside risk	0.67	1.21	-0.54
Omega ratio: Gain probability vs. loss probability	1.08	1.15	-0.07
Calmar ratio: Return relative to maximum drawdown	0.42	0.88	-0.46
Martin ratio: Return relative to average drawdown	1.08	2.38	-1.30

XLF vs. IYF - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.42, which is lower than the IYF Sharpe Ratio of 0.84. The chart below compares the historical Sharpe Ratios of XLF and IYF, 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. IYF - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, roughly equal to the maximum IYF drawdown of -79.09%. Use the drawdown chart below to compare losses from any high point for XLF and IYF.

Drawdown Indicators

	XLF	IYF	Difference
Max Drawdown Largest peak-to-trough decline	-82.69%	-79.09%	-3.60%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-13.88%	-0.91%
Max Drawdown (3Y) Largest decline over 3 years	-15.54%	-16.60%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	-25.81%	-25.06%	-0.75%
Max Drawdown (10Y) Largest decline over 10 years	-42.86%	-42.57%	-0.29%
Current Drawdown Current decline from peak	-4.94%	-3.25%	-1.69%
Average Drawdown Average peak-to-trough decline	-20.01%	-17.59%	-2.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.76%	5.13%	+0.63%

Volatility

XLF vs. IYF - Volatility Comparison

State Street Financial Select Sector SPDR ETF (XLF) and iShares U.S. Financials ETF (IYF) have volatilities of 4.23% and 4.27%, 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	IYF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.23%	4.27%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	11.26%	11.12%	+0.14%
Volatility (1Y) Calculated over the trailing 1-year period	14.69%	14.58%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.66%	19.04%	-0.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.17%	20.90%	+1.27%

XLF vs. IYF - Expense Ratio Comparison

XLF has a 0.08% expense ratio, which is lower than IYF's 0.42% expense ratio.

Dividends

XLF vs. IYF - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.49%, which matches IYF's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYF iShares U.S. Financials ETF	1.49%	1.32%	1.29%	1.67%	1.86%	1.27%	1.72%	1.64%	1.90%	1.46%	1.67%	1.66%
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 IYF in my portfolio?

With a correlation of 0.97, XLF and IYF 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, XLF or IYF?

IYF has higher volatility (4.27%) compared to XLF (4.23%). In terms of maximum drawdown, XLF dropped -82.69% vs IYF's -79.09%.

Which ETF is better, XLF or IYF?

On 10-year performance, IYF leads with 13.53% vs 13.33% for XLF. On fees, XLF is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLF or IYF?

Over the 10-year period, IYF has performed better with a 13.53% return vs 13.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLF or IYF?

XLF is cheaper with a 0.08% expense ratio, compared with 0.42% for IYF.

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

XLF and IYF have nearly identical dividend yields, around 1.49%.

What is the main difference between XLF and IYF?

XLF tracks Financial Select Sector Index, while IYF tracks Dow Jones U.S. Financials Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLF and 0.42% for IYF.

Which has better risk-adjusted returns?

IYF currently has the higher Sharpe Ratio (0.84 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.