XLF vs. KBWB

Last updated Jun 16, 2026

XLF (State Street Financial Select Sector SPDR ETF) and KBWB (Invesco KBW Bank ETF) are both Financials Equities funds - XLF tracks the Financial Select Sector Index while KBWB tracks the KBW Nasdaq Bank Index. Both are passively managed. Over the past 10 years, XLF returned 13.34%/yr vs 13.33%/yr for KBWB. Their correlation of 0.93 suggests significant overlap in exposure. XLF charges 0.08%/yr vs 0.35%/yr for KBWB.

Performance

XLF vs. KBWB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR ETF (XLF) and Invesco KBW Bank ETF (KBWB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLF achieves a -1.71% return, which is significantly lower than KBWB's 9.93% return. Both investments have delivered pretty close results over the past 10 years, with XLF having a 13.34% annualized return and KBWB not far behind at 13.33%.

XLF

• 1D: 0.41%
• 1M: 4.81%
• YTD: -1.71%
• 6M: -1.76%
• 1Y: 8.86%
• 3Y*: 18.74%
• 5Y*: 9.45%
• 10Y*: 13.34%

KBWB

• 1D: -0.57%
• 1M: 9.99%
• YTD: 9.93%
• 6M: 9.53%
• 1Y: 43.71%
• 3Y*: 33.53%
• 5Y*: 9.82%
• 10Y*: 13.33%

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

XLF vs. KBWB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLF State Street Financial Select Sector SPDR ETF	-1.71%	14.90%	30.56%	12.03%	-10.59%	34.80%	-1.74%	31.88%	-13.06%	22.00%
KBWB Invesco KBW Bank ETF	9.93%	32.05%	36.73%	-1.18%	-21.68%	37.72%	-10.46%	35.90%	-18.30%	18.11%

Correlation

The correlation between XLF and KBWB is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011	0.93

The correlation between XLF and KBWB has been stable across timeframes, ranging from 0.85 to 0.93 - a consistent structural relationship.

XLF vs. KBWB - Sectors Allocation Comparison

Sectors	XLF	KBWB
Financial Services	98.0%	100.0%
Technology	1.8%	-
Industrials	0.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XLF vs. KBWB — Risk / Return Rank

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

XLF

XLF Risk / Return Rank: 18
XLF Sharpe Ratio Rank: 20
XLF Sortino Ratio Rank: 19
XLF Omega Ratio Rank: 19
XLF Calmar Ratio Rank: 17
XLF Martin Ratio Rank: 17

KBWB

KBWB Risk / Return Rank: 65
KBWB Sharpe Ratio Rank: 75
KBWB Sortino Ratio Rank: 68
KBWB Omega Ratio Rank: 70
KBWB Calmar Ratio Rank: 59
KBWB Martin Ratio Rank: 54

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. KBWB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR ETF (XLF) and Invesco KBW Bank ETF (KBWB). 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	KBWB	Difference
Sharpe ratio: Return per unit of total volatility	0.61	2.16	-1.55
Sortino ratio: Return per unit of downside risk	0.92	2.79	-1.87
Omega ratio: Gain probability vs. loss probability	1.11	1.37	-0.26
Calmar ratio: Return relative to maximum drawdown	0.60	2.68	-2.08
Martin ratio: Return relative to average drawdown	1.54	8.43	-6.89

XLF vs. KBWB - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.61, which is lower than the KBWB Sharpe Ratio of 2.16. The chart below compares the historical Sharpe Ratios of XLF and KBWB, 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. KBWB - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, which is greater than KBWB's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for XLF and KBWB.

Drawdown Indicators

	XLF	KBWB	Difference
Max Drawdown Largest peak-to-trough decline	-82.69%	-50.27%	-32.42%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-16.38%	+1.59%
Max Drawdown (3Y) Largest decline over 3 years	-15.54%	-25.43%	+9.89%
Max Drawdown (5Y) Largest decline over 5 years	-25.81%	-49.31%	+23.50%
Max Drawdown (10Y) Largest decline over 10 years	-42.86%	-50.27%	+7.41%
Current Drawdown Current decline from peak	-4.55%	-0.57%	-3.98%
Average Drawdown Average peak-to-trough decline	-20.01%	-11.72%	-8.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.76%	5.20%	+0.56%

Volatility

XLF vs. KBWB - Volatility Comparison

The current volatility for State Street Financial Select Sector SPDR ETF (XLF) is 4.22%, while Invesco KBW Bank ETF (KBWB) has a volatility of 5.93%. This indicates that XLF experiences smaller price fluctuations and is considered to be less risky than KBWB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLF	KBWB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.22%	5.93%	-1.71%
Volatility (6M) Calculated over the trailing 6-month period	11.12%	15.76%	-4.64%
Volatility (1Y) Calculated over the trailing 1-year period	14.58%	20.33%	-5.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.66%	26.67%	-8.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.18%	29.22%	-7.04%

XLF vs. KBWB - Expense Ratio Comparison

XLF has a 0.08% expense ratio, which is lower than KBWB's 0.35% expense ratio.

Dividends

XLF vs. KBWB - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.48%, less than KBWB's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KBWB Invesco KBW Bank ETF	1.95%	2.04%	2.46%	3.20%	3.05%	2.13%	2.62%	2.38%	2.54%	1.35%	1.53%	1.53%
XLF State Street Financial Select Sector SPDR ETF	1.48%	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 KBWB in my portfolio?

XLF and KBWB have a correlation of 0.85, 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 KBWB?

KBWB has higher volatility (5.93%) compared to XLF (4.22%). In terms of maximum drawdown, XLF dropped -82.69% vs KBWB's -50.27%.

Which ETF is better, XLF or KBWB?

On 10-year performance, XLF leads with 13.34% vs 13.33% for KBWB. On fees, XLF is cheaper at 0.08% per year. On volatility, XLF has been the lower-risk option at 4.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLF or KBWB?

Over the 10-year period, XLF has performed better with a 13.34% 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 KBWB?

XLF is cheaper with a 0.08% expense ratio, compared with 0.35% for KBWB.

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

KBWB has the higher dividend yield at 1.95%, compared with 1.48% for XLF.

What is the main difference between XLF and KBWB?

XLF tracks Financial Select Sector Index, while KBWB tracks KBW Nasdaq Bank Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.08% for XLF and 0.35% for KBWB.

Which has better risk-adjusted returns?

KBWB currently has the higher Sharpe Ratio (2.16 vs 0.61), 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.