XLFI vs. FXO

Last updated Aug 2, 2026

XLFI (State Street Financial Select Sector SPDR Premium Income ETF) and FXO (First Trust Financials AlphaDEX Fund) are both exchange-traded funds - XLFI is a Derivative Income fund actively managed by State Street, while FXO is a Financials Equities fund tracking the StrataQuant Financials Index. XLFI is actively managed, while FXO is passively managed. Over the past year, XLFI returned 11.31% vs 20.66% for FXO. Their correlation of 0.86 means they have usually moved in the same direction. XLFI charges 0.35%/yr vs 0.62%/yr for FXO.

Performance

XLFI vs. FXO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Financial Select Sector SPDR Premium Income ETF (XLFI) and First Trust Financials AlphaDEX Fund (FXO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLFI achieves a 3.17% return, which is significantly lower than FXO's 10.50% return.

XLFI

• 1D: -0.41%
• 1M: 2.09%
• 6M: 4.95%
• YTD: 3.17%
• 1Y: 11.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 8.72%

FXO

• 1D: -0.27%
• 1M: 3.00%
• 6M: 9.35%
• YTD: 10.50%
• 1Y: 20.66%
• 3Y*: 19.71%
• 5Y*: 11.41%
• 10Y*: 13.35%
• ALL TIME*: 8.54%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FXO First Trust Financials AlphaDEX Fund	$2.27M	$3.01M	$3.46M
XLFI State Street Financial Select Sector SPDR Premium Income ETF	$205.39K	$226.21K	$175.11K

XLFI vs. FXO - Yearly Performance Comparison

	2026 (YTD)	2025
XLFI State Street Financial Select Sector SPDR Premium Income ETF	3.17%	5.40%
FXO First Trust Financials AlphaDEX Fund	10.50%	5.66%

Correlation

The correlation between XLFI and FXO is 0.86, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.86
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.86

The correlation between XLFI and FXO has been stable across timeframes, ranging from 0.86 to 0.86 - a consistent structural relationship.

XLFI vs. FXO - Sectors Allocation Comparison

Sectors	XLFI	FXO
Financial Services	100.4%	94.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	4.8%
Technology	-	0.5%
Utilities	-	-

Return for Risk

XLFI vs. FXO — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XLFI

XLFI Risk / Return Rank: 29
XLFI Sharpe Ratio Rank: 33
XLFI Sortino Ratio Rank: 29
XLFI Omega Ratio Rank: 31
XLFI Calmar Ratio Rank: 26
XLFI Martin Ratio Rank: 27

FXO

FXO Risk / Return Rank: 45
FXO Sharpe Ratio Rank: 47
FXO Sortino Ratio Rank: 45
FXO Omega Ratio Rank: 44
FXO Calmar Ratio Rank: 43
FXO Martin Ratio Rank: 43

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XLFI vs. FXO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Financial Select Sector SPDR Premium Income ETF (XLFI) and First Trust Financials AlphaDEX Fund (FXO). 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.

	XLFI	FXO	Difference
Sharpe ratio: Return per unit of total volatility	0.81	1.16	-0.36
Sortino ratio: Return per unit of downside risk	1.12	1.65	-0.54
Omega ratio: Gain probability vs. loss probability	1.15	1.21	-0.06
Calmar ratio: Return relative to maximum drawdown	0.80	1.55	-0.75
Martin ratio: Return relative to average drawdown	2.26	4.64	-2.38

XLFI vs. FXO - Sharpe Ratio Comparison

The current XLFI Sharpe Ratio is 0.81, which is lower than the FXO Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of XLFI and FXO, 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

XLFI vs. FXO - Drawdown Comparison

The maximum XLFI drawdown since its inception was -11.89%, smaller than the maximum FXO drawdown of -71.30%. Use the drawdown chart below to compare losses from any high point for XLFI and FXO.

Drawdown Indicators

	XLFI	FXO	Difference
Max Drawdown Largest peak-to-trough decline	-11.89%	-71.30%	+59.41%
Max Drawdown (1Y) Largest decline over 1 year	-11.89%	-11.72%	-0.17%
Max Drawdown (3Y) Largest decline over 3 years	—	-21.35%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-28.80%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-48.55%	—
Current Drawdown Current decline from peak	-1.11%	-1.49%	+0.38%
Average Drawdown Average peak-to-trough decline	-3.02%	-13.01%	+9.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.22%	3.91%	+0.31%

Volatility

XLFI vs. FXO - Volatility Comparison

The current volatility for State Street Financial Select Sector SPDR Premium Income ETF (XLFI) is 2.78%, while First Trust Financials AlphaDEX Fund (FXO) has a volatility of 4.15%. This indicates that XLFI experiences smaller price fluctuations and is considered to be less risky than FXO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLFI	FXO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	4.15%	-1.37%
Volatility (6M) Calculated over the trailing 6-month period	9.08%	11.04%	-1.96%
Volatility (1Y) Calculated over the trailing 1-year period	11.88%	15.64%	-3.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.85%	21.71%	-9.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.85%	24.05%	-12.20%

XLFI vs. FXO - Expense Ratio Comparison

XLFI has a 0.35% expense ratio, which is lower than FXO's 0.62% expense ratio.

Dividends

XLFI vs. FXO - Dividend Comparison

XLFI's dividend yield for the trailing twelve months is around 11.29%, more than FXO's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	1.99%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%
XLFI State Street Financial Select Sector SPDR Premium Income ETF	11.29%	5.57%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XLFI and FXO in my portfolio?

XLFI and FXO have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLFI or FXO?

FXO has higher volatility (4.15%) compared to XLFI (2.78%). In terms of maximum drawdown, XLFI dropped -11.89% vs FXO's -71.30%.

Which ETF is better, XLFI or FXO?

On 1-year performance, FXO leads with 20.66% vs 11.31% for XLFI. On fees, XLFI is cheaper at 0.35% per year. On volatility, XLFI has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLFI or FXO?

Over the 1-year period, FXO has performed better with a 20.66% return vs 11.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLFI or FXO?

XLFI is cheaper with a 0.35% expense ratio, compared with 0.62% for FXO.

Which ETF pays a higher dividend yield, XLFI or FXO?

XLFI has the higher dividend yield at 11.29%, compared with 1.99% for FXO.

What is the main difference between XLFI and FXO?

XLFI is categorized as Derivative Income, while FXO is Financials Equities. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.35% for XLFI and 0.62% for FXO.

Which has better risk-adjusted returns?

FXO currently has the higher Sharpe Ratio (1.16 vs 0.81), 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.