XLF: Financial Select Sector SPDR Fund returns, drawdowns and risk
Funds on a single sector of the US market: financials, energy, health care, industrials and more.
Data updated October 2026
XLF · US exchange · USDCategory: US sector ETFsData from June 2020
From June 2020 to October 2026 XLF returned 16.3% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $26,208.
Its deepest fall was 25.8%, from January 2022 to October 2022, and it took about 25 months to get back to the previous high. Annual volatility was 19.6%; at the last close it was 4.5% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 76 months both have data, the correlation of monthly returns was 0.75: they usually moved together. Beta was 0.91. In months when SPY rose, XLF moved 98% as much on average; in months when SPY fell, 92% as much.
Key figures
- Annual return (CAGR)
- +16.3%
- 1-year return
- +7.2%
- 5 years, a year
- +8.6%
- 10 years, a year
- —
- Annual volatility
- 19.6%
- Maximum drawdown
- −25.8%
- Sharpe ratio
- 0.73
- Worst year
- 2022: −10.6%
Trailing returns
| Period | XLF | SPY |
|---|---|---|
| 1 year | +7.2% | +16.6% |
| 3 years, a year | +21.9% | +23.1% |
| 5 years, a year | +8.6% | +12.7% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: XLF vs SPY
Month-end values from July 2020, the first month both funds have data.
XLF drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | XLF | SPY |
|---|---|---|
| 2026(partial) | +3.0% | +13.3% |
| 2025 | +14.9% | +17.7% |
| 2024 | +30.6% | +24.9% |
| 2023 | +12.0% | +26.2% |
| 2022 | −10.6% | −18.2% |
| 2021 | +34.8% | +28.7% |
| 2020(partial) | +25.6% | — |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of XLF?
From June 2020 to October 2026 XLF returned 16.3% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +8.6% a year. Over the last 12 months: +7.2%.
What was the worst drawdown of XLF?
25.8%, from January 2022 to October 2022; it took about 25 months from the previous high to get back to it.
How volatile is XLF?
Annual volatility was 19.6% over the period. Its worst month was −10.9% and 57% of months were positive. Worst calendar year: 2022 (−10.6%).
How closely does XLF follow SPY?
Over 76 months the correlation of monthly returns was 0.75, so they usually moved together, with a beta of 0.91.
Use XLF in a free tool
Other US sector ETFs
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.