XLE vs XLF
State Street Energy Select Sector SPDR ETF vs State Street Financial Select Sector SPDR ETF
Which is better, XLE or XLF?
Each has led over a different period.
XLE led over 1Y, 5Y and the full window, XLF over 3Y. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 73.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | XLE | XLF |
|---|---|---|
| Expense Ratio | 0.08%Tie | 0.08%Tie |
| AUM | $42.4B | $54.2B |
| Dividend Yield | 2.55% | 1.40% |
| Holdings | 24 | 80 |
| YTD Return | +38.51%Best | +0.15% |
| 1Y Return | +43.01%Best | +2.69% |
| 3Y Return (annualized) | +14.69% | +19.09%Best |
| 5Y Return (annualized) | +23.96%Best | +9.27% |
| Volatility (annualized) | 25.1% | 21.4%Best |
| Max Drawdown | -76.7%Best | -83.8% |
| $10,000 over 5 years | $29,269Best | $15,578 |
| Top 10 Weight | 73.5% | 56.8%Best |
| Fund Family | SPDR State Street Global Advisors | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 16, 1998 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Dec 22, 1998 to Sep 23, 2026 (27.8 years).
XLE vs XLF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 27.8 years both funds cover.
XLE vs XLF Performance
State Street Energy Select Sector SPDR ETF (XLE) is an ETF from SPDR State Street Global Advisors and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year XLE returned +43.01% while XLF returned +2.69%. Year to date, XLE is up 38.51% versus a gain of 0.15% for XLF.
Over three years, XLE compounded at +14.69% per year against +19.09% for XLF; over five years the annualized figures are +23.96% and +9.27% respectively. Across the full 28-year window we track, XLE has the edge at +7.02% annualized vs +3.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% 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 -76.7% for XLE and -83.8% for XLF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
Fees and Cost Over Time
XLE charges 0.08% per year while XLF charges 0.08%. On a $10,000 position that is $8 vs $8 annually. On income, XLE currently yields 2.55% against 1.40% for XLF.
Holdings Overlap
0.2% of XLE's money is in holdings XLF also owns. 0.3% of XLF's money is in holdings XLE also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 22 positions we hold weights for in XLE and 77 in XLF, against full books of 24 and 80.
What only one of them owns
Measured across the 22 and 77 positions we hold weights for.
XLF holds 75 positions XLE does not, 99.4% of the fund.
Largest: JPM 11.78%, BRK.B 11.41%, V 7.66%, MA 5.81%, BAC.K 5.01%
Top Shared Holdings
| Stock | Weight in XLE | Weight in XLF | Difference |
|---|---|---|---|
| NMFSsi Us Gov Money Market Class | 0.24% | 0.25% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of XLE and XLF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, XLE or XLF?
XLE has an expense ratio of 0.08% while XLF charges 0.08%. At the precision these are quoted to, they cost the same.
Which performed better, XLE or XLF?
Over the past year XLE returned +43.01% vs +2.69% for XLF, so XLE leads on 1-year performance. Over the longest common window we track (28 years), XLE annualized +7.02% vs +3.46% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, XLE or XLF?
XLE has been the more volatile fund at 25.1% annualized versus 21.4% for XLF. Worst drawdown: XLE -76.7% vs XLF -83.8%.
Should I hold both XLE and XLF?
XLE and XLF have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, XLE or XLF?
XLE yields 2.55% while XLF yields 1.40%, so XLE currently pays the higher dividend yield.
Is XLF better than XLE?
XLE led over 1Y, 5Y and the full window, XLF over 3Y. XLF is less concentrated, with 56.8% of the fund in its ten largest positions against 73.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.