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XLF vs. SPDN
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLF vs. SPDN

Last updated Jun 9, 2026

XLF (State Street Financial Select Sector SPDR ETF) and SPDN (Direxion Daily S&P 500 Bear 1x Shares) are both exchange-traded funds - XLF is a Financials Equities fund tracking the Financial Select Sector Index, while SPDN is a Inverse Equities fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLF returned 12.79%/yr vs -12.43%/yr for SPDN. At a correlation of -0.73, they often move in opposite directions. XLF charges 0.08%/yr vs 0.50%/yr for SPDN.

Performance

XLF vs. SPDN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR ETF (XLF) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XLF achieves a -4.62% return, which is significantly higher than SPDN's -5.89% return. Over the past 10 years, XLF has outperformed SPDN with an annualized return of 12.79%, while SPDN has yielded a comparatively lower -12.43% annualized return.

XLF

1D
-0.63%
1M
1.42%
YTD
-4.62%
6M
-1.98%
1Y
2.91%
3Y*
18.06%
5Y*
8.47%
10Y*
12.79%

SPDN

1D
-0.11%
1M
0.11%
YTD
-5.89%
6M
-5.63%
1Y
-14.82%
3Y*
-12.12%
5Y*
-8.55%
10Y*
-12.43%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLF vs. SPDN - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLF
State Street Financial Select Sector SPDR ETF		-4.62%14.90%30.56%12.03%-10.59%34.80%-1.74%31.88%-13.06%22.00%
SPDN
Direxion Daily S&P 500 Bear 1x Shares		-5.89%-11.09%-12.88%-15.04%18.63%-23.72%-24.56%-21.94%5.41%-17.16%

Correlation

The correlation between XLF and SPDN is -0.60, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

-0.60

Correlation (3Y)
Calculated over the trailing 3-year period

-0.64

Correlation (5Y)
Calculated over the trailing 5-year period

-0.73

Correlation (10Y)
Calculated over the trailing 10-year period

-0.73

Correlation (All Time)
Calculated using the full available price history since Jun 8, 2016

-0.73

The correlation between XLF and SPDN shifts across timeframes, from -0.73 (5 years) to -0.60 (1 year), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

State Street Financial Select Sector SPDR ETF

Direxion Daily S&P 500 Bear 1x Shares

Often compared with XLF:
XLF vs. SPYXLF vs. VFHXLF vs. KBWBXLF vs. XLVXLF vs. KREXLF vs. KBEXLF vs. JPM
Often compared with SPDN:
SPDN vs. SHSPDN vs. SPYSPDN vs. SPXUSPDN vs. SDSSPDN vs. VXZSPDN vs. QQQSPDN vs. SQQQ

Return for Risk

XLF vs. SPDN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLF
XLF Risk / Return Rank: 1212
Overall Rank
XLF Sharpe Ratio Rank: 1212
Sharpe Ratio Rank
XLF Sortino Ratio Rank: 1212
Sortino Ratio Rank
XLF Omega Ratio Rank: 1212
Omega Ratio Rank
XLF Calmar Ratio Rank: 1212
Calmar Ratio Rank
XLF Martin Ratio Rank: 1212
Martin Ratio Rank
SPDN
SPDN Risk / Return Rank: 11
Overall Rank
SPDN Sharpe Ratio Rank: 00
Sharpe Ratio Rank
SPDN Sortino Ratio Rank: 11
Sortino Ratio Rank
SPDN Omega Ratio Rank: 11
Omega Ratio Rank
SPDN Calmar Ratio Rank: 22
Calmar Ratio Rank
SPDN Martin Ratio Rank: 11
Martin Ratio Rank
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. SPDN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR ETF (XLF) and Direxion Daily S&P 500 Bear 1x Shares (SPDN). 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.

XLFSPDNDifference
Sharpe ratioReturn per unit of total volatility
0.20
-1.21

+1.41

Sortino ratioReturn per unit of downside risk
0.37
-1.74

+2.11

Omega ratioGain probability vs. loss probability

1.05

0.81

+0.23

Calmar ratioReturn relative to maximum drawdown

0.20

-0.84

+1.04

Martin ratioReturn relative to average drawdown

0.51

-1.53

+2.04

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. SPDN - Sharpe Ratio Comparison

The current XLF Sharpe Ratio is 0.20, which is higher than the SPDN Sharpe Ratio of -1.21. The chart below compares the historical Sharpe Ratios of XLF and SPDN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

XLFSPDNDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.20

-1.21

+1.41

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.46

-0.51

+0.96

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.58

-0.69

+1.27

Sharpe Ratio (All Time)

Calculated using the full available price history

0.21

-0.69

+0.89

Drawdowns

XLF vs. SPDN - Drawdown Comparison

The maximum XLF drawdown since its inception was -82.69%, which is greater than SPDN's maximum drawdown of -75.31%. Use the drawdown chart below to compare losses from any high point for XLF and SPDN.

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Drawdown Indicators

XLFSPDNDifference

Max Drawdown

Largest peak-to-trough decline

-82.69%

-75.31%

-7.38%

Max Drawdown (1Y)

Largest decline over 1 year

-14.79%

-17.73%

+2.94%

Max Drawdown (3Y)

Largest decline over 3 years

-15.54%

-38.24%

+22.70%

Max Drawdown (5Y)

Largest decline over 5 years

-25.81%

-43.85%

+18.04%

Max Drawdown (10Y)

Largest decline over 10 years

-42.86%

-75.31%

+32.45%

Current Drawdown

Current decline from peak

-7.38%

-74.65%

+67.27%

Average Drawdown

Average peak-to-trough decline

-20.02%

-48.57%

+28.55%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.71%

9.71%

-4.00%

Volatility

XLF vs. SPDN - Volatility Comparison

State Street Financial Select Sector SPDR ETF (XLF) has a higher volatility of 4.20% compared to Direxion Daily S&P 500 Bear 1x Shares (SPDN) at 3.55%. This indicates that XLF's price experiences larger fluctuations and is considered to be riskier than SPDN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XLFSPDNDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.20%

3.55%

+0.65%

Volatility (6M)

Calculated over the trailing 6-month period

11.18%

9.44%

+1.74%

Volatility (1Y)

Calculated over the trailing 1-year period

14.61%

12.33%

+2.28%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.66%

16.90%

+1.76%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

22.18%

18.05%

+4.13%

XLF vs. SPDN - Expense Ratio Comparison

XLF has a 0.08% expense ratio, which is lower than SPDN's 0.50% expense ratio.

Dividends

XLF vs. SPDN - Dividend Comparison

XLF's dividend yield for the trailing twelve months is around 1.52%, less than SPDN's 4.01% yield.

PositionTTM20252024202320222021202020192018201720162015
SPDN
Direxion Daily S&P 500 Bear 1x Shares		4.01%4.06%5.32%5.84%0.96%0.00%0.10%1.89%1.24%0.42%0.00%0.00%
XLF
State Street Financial Select Sector SPDR ETF		1.52%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

XLF and SPDN have a correlation of -0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLF has higher volatility (4.20%) compared to SPDN (3.55%). In terms of maximum drawdown, XLF dropped -82.69% vs SPDN's -75.31%.

On 10-year performance, XLF leads with 12.79% vs -12.43% for SPDN. On fees, XLF is cheaper at 0.08% per year. On volatility, SPDN has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLF has performed better with a 12.79% return vs -12.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLF is cheaper with a 0.08% expense ratio, compared with 0.50% for SPDN.

SPDN has the higher dividend yield at 4.01%, compared with 1.52% for XLF.

XLF is categorized as Financials Equities, while SPDN is Inverse Equities. XLF tracks Financial Select Sector Index, while SPDN tracks S&P 500 Index. They also come from different issuers: State Street and Direxion. Their fees differ too: 0.08% for XLF and 0.50% for SPDN.

XLF currently has the higher Sharpe Ratio (0.20 vs -1.21), 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.

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