XLFQ.L vs. FNCL

Last updated Jun 5, 2026

XLFQ.L (Invesco US Financials Sector UCITS ETF) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - XLFQ.L tracks the MSCI World/Financials NR USD while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, XLFQ.L returned 13.02%/yr vs 13.22%/yr for FNCL. A 0.67 correlation means they provide meaningful diversification when combined. XLFQ.L charges 0.14%/yr vs 0.08%/yr for FNCL.

Performance

XLFQ.L vs. FNCL - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Invesco US Financials Sector UCITS ETF (XLFQ.L) and Fidelity MSCI Financials Index ETF (FNCL). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XLFQ.L is traded in GBp, while FNCL is traded in USD. To make them comparable, the FNCL values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, XLFQ.L achieves a -4.71% return, which is significantly lower than FNCL's -3.54% return. Both investments have delivered pretty close results over the past 10 years, with XLFQ.L having a 13.02% annualized return and FNCL not far ahead at 13.22%.

XLFQ.L

• 1D: 3.26%
• 1M: 2.31%
• YTD: -4.71%
• 6M: -2.62%
• 1Y: 4.63%
• 3Y*: 15.45%
• 5Y*: 9.10%
• 10Y*: 13.02%

FNCL

• 1D: 2.67%
• 1M: 1.63%
• YTD: -3.54%
• 6M: -2.33%
• 1Y: 6.75%
• 3Y*: 16.77%
• 5Y*: 9.53%
• 10Y*: 13.22%

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

XLFQ.L vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLFQ.L Invesco US Financials Sector UCITS ETF	-4.71%	7.07%	32.15%	6.12%	-0.39%	37.90%	-6.56%	27.16%	-9.51%	11.87%
FNCL Fidelity MSCI Financials Index ETF	-3.54%	6.75%	32.72%	8.39%	-1.85%	36.20%	-5.06%	26.59%	-8.31%	9.61%

Correlation

The correlation between XLFQ.L and FNCL is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Oct 25, 2013	0.67

The correlation between XLFQ.L and FNCL has been stable across timeframes, ranging from 0.65 to 0.68 - a consistent structural relationship.

XLFQ.L vs. FNCL - Sectors Allocation Comparison

Sectors	XLFQ.L	FNCL
Financial Services	98.0%	96.9%
Technology	1.7%	2.1%
Industrials	0.2%	0.2%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.0%
Real Estate	-	0.7%
Utilities	-	-

Return for Risk

XLFQ.L vs. FNCL — Risk / Return Rank

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

XLFQ.L

XLFQ.L Risk / Return Rank: 14
XLFQ.L Sharpe Ratio Rank: 14
XLFQ.L Sortino Ratio Rank: 14
XLFQ.L Omega Ratio Rank: 13
XLFQ.L Calmar Ratio Rank: 13
XLFQ.L Martin Ratio Rank: 13

FNCL

FNCL Risk / Return Rank: 14
FNCL Sharpe Ratio Rank: 15
FNCL Sortino Ratio Rank: 14
FNCL Omega Ratio Rank: 15
FNCL Calmar Ratio Rank: 14
FNCL Martin Ratio Rank: 14

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.

XLFQ.L vs. FNCL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco US Financials Sector UCITS ETF (XLFQ.L) and Fidelity MSCI Financials Index ETF (FNCL). 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.

	XLFQ.L	FNCL	Difference
Sharpe ratio: Return per unit of total volatility	0.33	0.45	-0.12
Sortino ratio: Return per unit of downside risk	0.57	0.68	-0.11
Omega ratio: Gain probability vs. loss probability	1.07	1.09	-0.02
Calmar ratio: Return relative to maximum drawdown	0.36	0.51	-0.15
Martin ratio: Return relative to average drawdown	0.84	1.28	-0.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLFQ.L vs. FNCL - Sharpe Ratio Comparison

The current XLFQ.L Sharpe Ratio is 0.33, which is comparable to the FNCL Sharpe Ratio of 0.45. The chart below compares the historical Sharpe Ratios of XLFQ.L and FNCL, 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

	XLFQ.L	FNCL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.33	0.45	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.52	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	0.60	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.62	+0.03

Drawdowns

XLFQ.L vs. FNCL - Drawdown Comparison

The maximum XLFQ.L drawdown since its inception was -35.39%, smaller than the maximum FNCL drawdown of -37.82%. Use the drawdown chart below to compare losses from any high point for XLFQ.L and FNCL.

Drawdown Indicators

	XLFQ.L	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-35.39%	-37.82%	+2.43%
Max Drawdown (1Y) Largest decline over 1 year	-12.81%	-13.25%	+0.44%
Max Drawdown (3Y) Largest decline over 3 years	-19.01%	-20.07%	+1.06%
Max Drawdown (5Y) Largest decline over 5 years	-19.01%	-20.52%	+1.51%
Max Drawdown (10Y) Largest decline over 10 years	-35.39%	-37.82%	+2.43%
Current Drawdown Current decline from peak	-6.62%	-6.29%	-0.33%
Average Drawdown Average peak-to-trough decline	-5.65%	-5.70%	+0.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.48%	5.30%	+0.18%

Volatility

XLFQ.L vs. FNCL - Volatility Comparison

Invesco US Financials Sector UCITS ETF (XLFQ.L) has a higher volatility of 4.46% compared to Fidelity MSCI Financials Index ETF (FNCL) at 4.17%. This indicates that XLFQ.L's price experiences larger fluctuations and is considered to be riskier than FNCL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLFQ.L	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	4.17%	+0.29%
Volatility (6M) Calculated over the trailing 6-month period	10.48%	11.36%	-0.88%
Volatility (1Y) Calculated over the trailing 1-year period	13.91%	15.21%	-1.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.52%	18.44%	-0.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.14%	22.20%	-2.06%

XLFQ.L vs. FNCL - Expense Ratio Comparison

XLFQ.L has a 0.14% expense ratio, which is higher than FNCL's 0.08% 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%.

Dividends

XLFQ.L vs. FNCL - Dividend Comparison

XLFQ.L has not paid dividends to shareholders, while FNCL's dividend yield for the trailing twelve months is around 1.66%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.66%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
XLFQ.L Invesco US Financials Sector UCITS ETF	0.00%	0.00%	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 XLFQ.L and FNCL in my portfolio?

XLFQ.L and FNCL have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLFQ.L or FNCL?

On fees, FNCL is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XLFQ.L or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.14% for XLFQ.L.

What is the main difference between XLFQ.L and FNCL?

XLFQ.L tracks MSCI World/Financials NR USD, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: Invesco and Fidelity. Their fees differ too: 0.14% for XLFQ.L and 0.08% for FNCL.