XLF vs. KWT

Last updated Jun 4, 2026

XLF (State Street Financial Select Sector SPDR ETF) and KWT (iShares MSCI Kuwait ETF) are both Financials Equities funds - XLF tracks the Financial Select Sector Index while KWT tracks the MSCI All Kuwait Select Size Liquidity Capped Index. Both are passively managed. Over the past 5 years, XLF returned 7.61%/yr vs 9.17%/yr for KWT. At a 0.34 correlation, their price movements are largely independent. XLF charges 0.08%/yr vs 0.74%/yr for KWT.

Performance

XLF vs. KWT - 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 MSCI Kuwait ETF (KWT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLF achieves a -6.64% return, which is significantly lower than KWT's -1.30% return.

XLF

• 1D: -1.15%
• 1M: -1.38%
• YTD: -6.64%
• 6M: -4.18%
• 1Y: 1.13%
• 3Y*: 17.64%
• 5Y*: 7.61%
• 10Y*: 12.38%

KWT

• 1D: -0.59%
• 1M: -1.54%
• YTD: -1.30%
• 6M: -1.08%
• 1Y: 6.41%
• 3Y*: 10.61%
• 5Y*: 9.17%
• 10Y*: —

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

XLF vs. KWT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XLF State Street Financial Select Sector SPDR ETF	-6.64%	14.90%	30.56%	12.03%	-10.59%	34.80%	18.73%
KWT iShares MSCI Kuwait ETF	-1.30%	25.38%	11.29%	-4.71%	5.16%	30.73%	9.07%

Correlation

The correlation between XLF and KWT is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 4, 2020	0.34

XLF vs. KWT - Sectors Allocation Comparison

Sectors	XLF	KWT
Financial Services	98.0%	64.4%
Technology	1.8%	-
Industrials	0.2%	10.8%
Basic Materials	-	1.6%
Communication Services	-	6.3%
Consumer Cyclical	-	2.2%
Consumer Defensive	-	2.7%
Energy	-	-
Healthcare	-	-
Real Estate	-	11.0%
Utilities	-	1.0%

Return for Risk

XLF vs. KWT — Risk / Return Rank

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

XLF

XLF Risk / Return Rank: 9
XLF Sharpe Ratio Rank: 9
XLF Sortino Ratio Rank: 9
XLF Omega Ratio Rank: 9
XLF Calmar Ratio Rank: 9
XLF Martin Ratio Rank: 9

KWT

KWT Risk / Return Rank: 16
KWT Sharpe Ratio Rank: 16
KWT Sortino Ratio Rank: 16
KWT Omega Ratio Rank: 16
KWT Calmar Ratio Rank: 16
KWT Martin Ratio Rank: 15

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. KWT - 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 MSCI Kuwait ETF (KWT). 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.

	XLF	KWT	Difference
Sharpe ratio: Return per unit of total volatility	0.08	0.47	-0.39
Sortino ratio: Return per unit of downside risk	0.20	0.74	-0.54
Omega ratio: Gain probability vs. loss probability	1.02	1.10	-0.08
Calmar ratio: Return relative to maximum drawdown	0.08	0.56	-0.48
Martin ratio: Return relative to average drawdown	0.20	1.33	-1.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLF vs. KWT - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.08, which is lower than the KWT Sharpe Ratio of 0.47. The chart below compares the historical Sharpe Ratios of XLF and KWT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLF	KWT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.08	0.47	-0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.68	-0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.90	-0.70

Drawdowns

XLF vs. KWT - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, which is greater than KWT's maximum drawdown of -24.37%. Use the drawdown chart below to compare losses from any high point for XLF and KWT.

Drawdown Indicators

	XLF	KWT	Difference
Max Drawdown Largest peak-to-trough decline	-82.69%	-24.37%	-58.32%
Max Drawdown (1Y) Largest decline over 1 year	-14.79%	-11.54%	-3.25%
Max Drawdown (3Y) Largest decline over 3 years	-15.54%	-15.72%	+0.18%
Max Drawdown (5Y) Largest decline over 5 years	-25.81%	-24.37%	-1.44%
Max Drawdown (10Y) Largest decline over 10 years	-42.86%	—	—
Current Drawdown Current decline from peak	-9.34%	-6.07%	-3.27%
Average Drawdown Average peak-to-trough decline	-20.03%	-7.30%	-12.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.66%	4.85%	+0.81%

Volatility

XLF vs. KWT - Volatility Comparison

State Street Financial Select Sector SPDR ETF (XLF) and iShares MSCI Kuwait ETF (KWT) have volatilities of 3.29% and 3.16%, 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	KWT	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.29%	3.16%	+0.13%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	11.64%	-0.70%
Volatility (1Y) Calculated over the trailing 1-year period	14.41%	13.84%	+0.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.63%	13.61%	+5.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.16%	13.93%	+8.23%

XLF vs. KWT - Expense Ratio Comparison

XLF has a 0.08% expense ratio, which is lower than KWT's 0.74% expense ratio.

Dividends

XLF vs. KWT - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.56%, less than KWT's 5.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KWT iShares MSCI Kuwait ETF	5.47%	5.40%	6.09%	2.25%	5.87%	7.65%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%
XLF State Street Financial Select Sector SPDR ETF	1.56%	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 KWT in my portfolio?

XLF and KWT have a correlation of 0.27, 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 KWT?

XLF has higher volatility (3.29%) compared to KWT (3.16%). In terms of maximum drawdown, XLF dropped -82.69% vs KWT's -24.37%.

Which ETF is better, XLF or KWT?

On 5-year performance, KWT leads with 9.17% vs 7.61% for XLF. On fees, XLF is cheaper at 0.08% per year. On volatility, KWT has been the lower-risk option at 3.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLF or KWT?

Over the 5-year period, KWT has performed better with a 9.17% return vs 7.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLF or KWT?

XLF is cheaper with a 0.08% expense ratio, compared with 0.74% for KWT.

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

KWT has the higher dividend yield at 5.47%, compared with 1.56% for XLF.

What is the main difference between XLF and KWT?

XLF tracks Financial Select Sector Index, while KWT tracks MSCI All Kuwait Select Size Liquidity Capped Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLF and 0.74% for KWT.

Which has better risk-adjusted returns?

KWT currently has the higher Sharpe Ratio (0.47 vs 0.08), 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.