XLF vs XLP: returns, risk and drawdowns compared
Financial Select Sector SPDR Fund against Consumer Staples Select Sector SPDR Fund, over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, XLF returned 16.9% a year and XLP 9.4% a year on average, so XLF came out ahead by 7.5% a year. XLF was the more volatile of the two (18.6% against 14.0% a year), and the deepest falls from a month-end high were 23.1% for XLF and 12.8% for XLP.
The correlation of monthly returns was 0.53: they moved together only in part. Over 41 rolling 3-year periods, XLF did better in 95% and XLP in 5%.
Side by side
| XLF | XLP | |
|---|---|---|
| Annual return (CAGR) | +16.9% | +9.4% |
| Total return | +169% | +76% |
| Annual volatility | 18.6% | 14.0% |
| Maximum drawdown (month-end) | −23.1% | −12.8% |
| Worst month | −10.9% | −8.4% |
| Best month | +16.8% | +10.5% |
| Positive months | 57% | 55% |
| Best year | 2021: +34.8% | 2021: +17.2% |
| Worst year | 2022: −10.6% | 2023: −0.8% |
| 1-year return | +7.2% | +13.2% |
| 5 years, a year | +8.6% | +7.2% |
| 10 years, a year | — | +8.3% |
| Trading currency | USD | USD |
First nine rows: the same 76 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: XLF vs XLP
Returns by calendar year
| Year | XLF | XLP |
|---|---|---|
| 2025 | +14.9% | +1.5% |
| 2024 | +30.6% | +12.2% |
| 2023 | +12.0% | −0.8% |
| 2022 | −10.6% | −0.8% |
| 2021 | +34.8% | +17.2% |
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.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, XLF or XLP?
From July 2020 to October 2026, XLF returned +16.9% a year and XLP +9.4% a year, with dividends reinvested. Over rolling 3-year periods XLF did better in 95% of cases. Past returns do not predict future returns.
Which is riskier, XLF or XLP?
Over the same months annual volatility was 18.6% for XLF and 14.0% for XLP; the deepest fall from a month-end high was 23.1% and 12.8%, and the worst single month −10.9% and −8.4%.
How correlated are XLF and XLP?
The correlation of their monthly returns was 0.53: they moved together only in part. Combining them has historically given some diversification.
More comparisons
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.