XLU vs. XFN.TO

Last updated Jun 14, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and XFN.TO (iShares S&P/TSX Capped Financials Index ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while XFN.TO is a Financials Equities fund tracking the Morningstar Gbl Fin Svc GR CAD. Both are passively managed. Over the past 10 years, XLU returned 9.20%/yr vs 14.23%/yr for XFN.TO. At a 0.30 correlation, their price movements are largely independent. XLU charges 0.08%/yr vs 0.61%/yr for XFN.TO.

Performance

XLU vs. XFN.TO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and iShares S&P/TSX Capped Financials Index ETF (XFN.TO). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XLU is traded in USD, while XFN.TO is traded in CAD. To make them comparable, the XFN.TO values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, XLU achieves a 5.04% return, which is significantly lower than XFN.TO's 15.63% return. Over the past 10 years, XLU has underperformed XFN.TO with an annualized return of 9.20%, while XFN.TO has yielded a comparatively higher 14.23% annualized return.

XLU

• 1D: 1.09%
• 1M: -0.82%
• YTD: 5.04%
• 6M: 5.48%
• 1Y: 12.50%
• 3Y*: 13.79%
• 5Y*: 9.41%
• 10Y*: 9.20%

XFN.TO

• 1D: 0.62%
• 1M: 5.25%
• YTD: 15.63%
• 6M: 17.89%
• 1Y: 45.31%
• 3Y*: 29.51%
• 5Y*: 14.86%
• 10Y*: 14.23%

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

XLU vs. XFN.TO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	5.04%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
XFN.TO iShares S&P/TSX Capped Financials Index ETF	15.63%	40.83%	19.22%	15.85%	-15.28%	35.64%	3.44%	25.85%	-16.76%	20.71%

Correlation

The correlation between XLU and XFN.TO is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jul 12, 2006	0.30

The correlation between XLU and XFN.TO shifts across timeframes, from 0.17 (1 year) to 0.30 (all time), reflecting how their relationship changes across market environments.

XLU vs. XFN.TO - Sectors Allocation Comparison

Sectors	XLU	XFN.TO
Utilities	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	100.0%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

XLU vs. XFN.TO — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 26
XLU Sharpe Ratio Rank: 26
XLU Sortino Ratio Rank: 24
XLU Omega Ratio Rank: 24
XLU Calmar Ratio Rank: 30
XLU Martin Ratio Rank: 24

XFN.TO

XFN.TO Risk / Return Rank: 95
XFN.TO Sharpe Ratio Rank: 97
XFN.TO Sortino Ratio Rank: 97
XFN.TO Omega Ratio Rank: 96
XFN.TO Calmar Ratio Rank: 94
XFN.TO Martin Ratio Rank: 95

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.

XLU vs. XFN.TO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and iShares S&P/TSX Capped Financials Index ETF (XFN.TO). 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.

	XLU	XFN.TO	Difference
Sharpe ratio: Return per unit of total volatility	0.81	3.52	-2.70
Sortino ratio: Return per unit of downside risk	1.18	4.86	-3.68
Omega ratio: Gain probability vs. loss probability	1.15	1.61	-0.46
Calmar ratio: Return relative to maximum drawdown	1.30	5.00	-3.71
Martin ratio: Return relative to average drawdown	2.80	19.84	-17.04

XLU vs. XFN.TO - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.81, which is lower than the XFN.TO Sharpe Ratio of 3.52. The chart below compares the historical Sharpe Ratios of XLU and XFN.TO, 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

XLU vs. XFN.TO - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum XFN.TO drawdown of -67.57%. Use the drawdown chart below to compare losses from any high point for XLU and XFN.TO.

Drawdown Indicators

	XLU	XFN.TO	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-67.57%	+15.59%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-9.00%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-16.26%	-1.00%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-28.13%	+2.87%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-45.08%	+9.01%
Current Drawdown Current decline from peak	-6.05%	0.00%	-6.05%
Average Drawdown Average peak-to-trough decline	-10.22%	-11.15%	+0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.25%	2.27%	+1.98%

Volatility

XLU vs. XFN.TO - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.59% compared to iShares S&P/TSX Capped Financials Index ETF (XFN.TO) at 4.02%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than XFN.TO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	XFN.TO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	4.02%	+1.57%
Volatility (6M) Calculated over the trailing 6-month period	11.68%	10.56%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	14.66%	12.81%	+1.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	15.11%	+2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.27%	17.99%	+1.28%

XLU vs. XFN.TO - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than XFN.TO's 0.61% expense ratio.

Dividends

XLU vs. XFN.TO - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.67%, more than XFN.TO's 2.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XFN.TO iShares S&P/TSX Capped Financials Index ETF	2.07%	2.39%	3.16%	3.60%	3.48%	2.67%	3.35%	3.00%	3.43%	2.73%	2.83%	3.17%
XLU State Street Utilities Select Sector SPDR ETF	2.67%	2.71%	2.96%	3.39%	2.92%	2.79%	3.14%	2.95%	3.33%	3.33%	3.41%	3.67%

Frequently Asked Questions

Can I hold both XLU and XFN.TO in my portfolio?

XLU and XFN.TO have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLU or XFN.TO?

On fees, XLU 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, XLU or XFN.TO?

XLU is cheaper with a 0.08% expense ratio, compared with 0.61% for XFN.TO.

What is the main difference between XLU and XFN.TO?

XLU is categorized as Utilities Equities, while XFN.TO is Financials Equities. XLU tracks Utilities Select Sector Index, while XFN.TO tracks Morningstar Gbl Fin Svc GR CAD. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLU and 0.61% for XFN.TO.