EDV vs XLF

Quick Verdict

EDV has a lower expense ratio. XLF delivered stronger 1-year returns. XLF offers more diversification with 77 holdings.

Lower Fees: EDVHigher Returns: XLFMore Diversified: XLF

Side-by-Side Comparison

MetricEDVXLFWinner
Expense Ratio0.05%0.08%
AUM$3.5B$56.2B
Dividend Yield4.83%1.51%
Holdings8380
YTD Return-5.78%+6.16%
1Y Return-5.10%+13.27%
3Y Return (annualized)-4.63%+20.20%
5Y Return (annualized)-12.45%+10.45%
Volatility (annualized)21.8%21.4%
Max Drawdown-62.0%-83.8%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryFixed IncomeEquity
InceptionDec 6, 2007Dec 16, 1998

EDV vs XLF Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and State Street Financial Select Sector SPDR ETF (XLF) is a ETF from SPDR State Street Global Advisors. Over the past year EDV returned -5.10% while XLF returned +13.27%. Year to date, EDV is down 5.78% versus a gain of 6.16% for XLF.

Over three years, EDV compounded at -4.63% per year against +20.20% for XLF; over five years the annualized figures are -12.45% and +10.45% respectively. Across the full 19-year window we track, XLF has the edge at +3.70% annualized vs -1.49%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 21.8% compared with 21.4% for XLF. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -62.0% for EDV and -83.8% for XLF. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at -0.20. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EDV charges 0.05% per year while XLF charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, EDV currently yields 4.83% against 1.51% for XLF.

Holdings Overlap

0.0%overlap

EDV and XLF share 0 holdings out of 153 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EDV or XLF?

EDV has an expense ratio of 0.05% while XLF charges 0.08%. EDV is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, EDV or XLF?

Over the past year EDV returned -5.10% vs +13.27% for XLF, so XLF leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.49% vs +3.70% for XLF. Past performance does not guarantee future results.

Which is riskier, EDV or XLF?

EDV has been the more volatile fund at 21.8% annualized versus 21.4% for XLF. Worst drawdown: EDV -62.0% vs XLF -83.8%.

Should I hold both EDV and XLF?

EDV and XLF have a monthly-return correlation of -0.20, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and XLF?

EDV and XLF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.

Which pays a higher dividend, EDV or XLF?

EDV yields 4.83% while XLF yields 1.51%, so EDV currently pays the higher dividend yield.

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