XLF vs. VFH
Compare and contrast key facts about Financial Select Sector SPDR Fund (XLF) and Vanguard Financials ETF (VFH).
XLF and VFH 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. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. Both XLF and VFH 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 VFH.
Performance
XLF vs. VFH - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with XLF having a 34.14% return and VFH slightly higher at 34.33%. Both investments have delivered pretty close results over the past 10 years, with XLF having a 11.94% annualized return and VFH not far ahead at 12.03%.
XLF
34.14%
5.03%
18.26%
45.53%
13.12%
11.94%
VFH
34.33%
5.74%
19.85%
48.18%
13.11%
12.03%
Key characteristics
| XLF | VFH | |
|---|---|---|
| Sharpe Ratio | 3.35 | 3.29 |
| Sortino Ratio | 4.71 | 4.64 |
| Omega Ratio | 1.61 | 1.60 |
| Calmar Ratio | 3.56 | 3.48 |
| Martin Ratio | 23.90 | 23.50 |
| Ulcer Index | 1.93% | 2.05% |
| Daily Std Dev | 13.75% | 14.67% |
| Max Drawdown | -82.69% | -78.61% |
| Current Drawdown | -0.04% | -0.40% |
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XLF vs. VFH - Expense Ratio Comparison
XLF has a 0.13% expense ratio, which is higher than VFH's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between XLF and VFH is 0.98, 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.
Risk-Adjusted Performance
XLF vs. VFH - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Financial Select Sector SPDR Fund (XLF) and Vanguard Financials ETF (VFH). 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. VFH - Dividend Comparison
XLF's dividend yield for the trailing twelve months is around 1.33%, less than VFH's 1.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLF Financial Select Sector SPDR Fund | 1.33% | 1.71% | 2.04% | 1.63% | 2.03% | 1.86% | 2.09% | 1.48% | 1.63% | 1.95% | 1.61% | 1.47% |
VFH Vanguard Financials ETF | 1.60% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
Drawdowns
XLF vs. VFH - Drawdown Comparison
The maximum XLF drawdown since its inception was -82.69%, which is greater than VFH's maximum drawdown of -78.61%. Use the drawdown chart below to compare losses from any high point for XLF and VFH. For additional features, visit the drawdowns tool.
Volatility
XLF vs. VFH - Volatility Comparison
The current volatility for Financial Select Sector SPDR Fund (XLF) is 7.04%, while Vanguard Financials ETF (VFH) has a volatility of 7.79%. This indicates that XLF experiences smaller price fluctuations and is considered to be less risky than VFH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.