XLF vs. IYF
Compare and contrast key facts about Financial Select Sector SPDR Fund (XLF) and iShares U.S. Financials ETF (IYF).
XLF and IYF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. IYF is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Financials Index. It was launched on May 31, 2000. Both XLF and IYF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLF or IYF.
Key characteristics
| XLF | IYF | |
|---|---|---|
| YTD Return | 7.74% | 7.07% |
| 1Y Return | 24.18% | 27.08% |
| 3Y Return (Ann) | 5.61% | 6.13% |
| 5Y Return (Ann) | 9.96% | 9.76% |
| 10Y Return (Ann) | 13.09% | 10.42% |
| Sharpe Ratio | 1.86 | 1.91 |
| Daily Std Dev | 12.82% | 13.97% |
| Max Drawdown | -82.43% | -79.09% |
| Current Drawdown | -4.18% | -4.70% |
Correlation
The correlation between XLF and IYF is 0.97, 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
XLF vs. IYF - Performance Comparison
In the year-to-date period, XLF achieves a 7.74% return, which is significantly higher than IYF's 7.07% return. Over the past 10 years, XLF has outperformed IYF with an annualized return of 13.09%, while IYF has yielded a comparatively lower 10.42% 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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XLF vs. IYF - Expense Ratio Comparison
XLF has a 0.13% expense ratio, which is lower than IYF's 0.42% expense ratio.
Risk-Adjusted Performance
XLF vs. IYF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Financial Select Sector SPDR Fund (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.
Dividends
XLF vs. IYF - Dividend Comparison
XLF's dividend yield for the trailing twelve months is around 1.59%, more than IYF's 1.53% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYF iShares U.S. Financials ETF | 1.53% | 1.67% | 1.86% | 1.27% | 1.72% | 1.65% | 1.90% | 1.46% | 1.67% | 1.66% | 1.38% | 1.33% |
Drawdowns
XLF vs. IYF - Drawdown Comparison
The maximum XLF drawdown since its inception was -82.43%, 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. For additional features, visit the drawdowns tool.
Volatility
XLF vs. IYF - Volatility Comparison
The current volatility for Financial Select Sector SPDR Fund (XLF) is 3.68%, while iShares U.S. Financials ETF (IYF) has a volatility of 4.01%. This indicates that XLF experiences smaller price fluctuations and is considered to be less risky than IYF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.