State Street Financial Select Sector SPDR ETF (XLF)
$55.52+0.45%close of Oct 16, 2026
State Street Financial Select Sector SPDR ETF (XLF) is an exchange-traded fund (ETF) run by SPDR (State Street). This fund owns stocks of the financial companies in the S&P 500, such as banks, insurance companies and payment firms. It charges 0.08% a year. From December 1998 to October 2026 it returned about 6.0% a year, and its worst drop was −82.7%.
Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 16, 2026.
- Yearly fee
- 0.08%
- about $8 on $10,000
- 1-year return
- 9.0%
- to Oct 16, 2026
- Return per year
- 6.0%
- since December 1998
- Worst drop
- −82.7%
- since 1998
- Below its high
- −4.9%
- now
- Volatility
- 28.2%
- yearly swings
- Issuer
- SPDR (State Street)
- Tracks
- Financial Select Sector Index
- Started trading
- December 16, 1998
- Type
- US stocks, ETF
- Holdings
- 76 holdings as of October 15, 2026
- Expense ratio
- 0.08% a year
How has XLF done since 1998?#
From December 1998 to October 2026, XLF returned about 6.0% a year. The S&P 500 returned about 8.7% a year over the same dates. Say you put in $10,000 at the start. It would have been worth about $50,085 at the end, with every dividend reinvested.
| Period | XLF | S&P 500 (SPY) |
|---|---|---|
| 1 month | −0.4% | 1.5% |
| 3 months | −1.8% | 1.9% |
| 6 months | 7.5% | 9.3% |
| Year to date | 2.6% | 12.8% |
| 1 year | 9.0% | 16.8% |
| 3 years per year | 20.1% | 22.0% |
| 5 years per year | 8.9% | 12.8% |
| 10 years per year | 13.1% | 15.4% |
| Since 1998 per year | 6.0% | 8.7% |
Periods longer than a year show the return per year (CAGR). Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.
XLF returns by month and year#
XLF rose in 189 of its 335 months (56%). Its best month was April 2009, at 21.8%. Its worst was January 2009, at −26.2%.
| Year | Total | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.6% | −2.4 | −3.8 | −3.5 | 5.6 | −1.1 | 4.3 | 6.2 | 1.4 | −7.1 | 4.0 | ||
| 2025 | 14.9% | 6.5 | 1.4 | −4.2 | −2.1 | 4.5 | 3.1 | 0.0 | 3.1 | 0.1 | −2.8 | 1.8 | 3.1 |
| 2024 | 30.6% | 3.1 | 4.1 | 4.8 | −4.2 | 3.2 | −0.9 | 6.4 | 4.6 | −0.6 | 2.6 | 10.5 | −5.5 |
| 2023 | 12.0% | 6.9 | −2.3 | −9.5 | 3.2 | −4.2 | 6.6 | 4.8 | −2.7 | −3.1 | −2.4 | 10.9 | 5.3 |
| 2022 | −10.6% | 0.0 | −1.4 | −0.1 | −9.9 | 2.8 | −10.9 | 7.2 | −2.0 | −7.7 | 11.9 | 6.9 | −5.2 |
| 2021 | 34.8% | −1.8 | 11.6 | 5.9 | 6.5 | 4.8 | −3.0 | −0.5 | 5.2 | −1.8 | 7.3 | −5.7 | 3.4 |
| 2020 | −1.7% | −2.7 | −11.2 | −21.0 | 9.5 | 2.7 | −0.5 | 3.9 | 4.3 | −3.4 | −0.9 | 16.9 | 6.3 |
| 2019 | 31.9% | 8.9 | 2.2 | −2.6 | 9.0 | −7.2 | 6.7 | 2.4 | −4.7 | 4.5 | 2.5 | 5.1 | 2.6 |
| 2018 | −13.1% | 6.6 | −2.9 | −4.2 | −0.4 | −1.0 | −1.7 | 5.1 | 1.4 | −2.2 | −4.7 | 2.6 | −11.1 |
| 2017 | 22.0% | 0.3 | 5.3 | −3.0 | −0.8 | −1.2 | 6.5 | 1.7 | −1.5 | 5.1 | 2.9 | 3.5 | 1.9 |
| 2016 | 22.4% | −8.8 | −2.9 | 7.2 | 3.6 | 1.9 | −3.2 | 3.5 | 3.9 | −2.8 | 2.3 | 14.0 | 3.8 |
| 2015 | −1.8% | −7.0 | 5.8 | −0.6 | 0.1 | 2.0 | −0.5 | 3.4 | −7.1 | −2.8 | 6.3 | 2.0 | −2.4 |
| 2014 | 15.0% | −3.7 | 3.0 | 3.3 | −1.7 | 1.5 | 2.4 | −1.4 | 4.2 | −0.4 | 2.9 | 2.4 | 1.9 |
| 2013 | 35.5% | 6.0 | 1.2 | 3.9 | 2.7 | 6.1 | −1.6 | 5.4 | −5.1 | 2.8 | 3.3 | 4.4 | 2.3 |
| 2012 | 28.4% | 8.2 | 5.0 | 7.4 | −2.3 | −9.2 | 5.0 | 0.1 | 3.4 | 3.3 | 2.0 | −0.9 | 4.7 |
| 2011 | −17.1% | 2.8 | 2.7 | −2.5 | −0.1 | −3.3 | −2.7 | −3.6 | −9.6 | −11.4 | 14.3 | −5.1 | 2.1 |
| 2010 | 11.9% | −1.5 | 3.5 | 8.9 | 1.3 | −9.2 | −5.7 | 6.5 | −7.8 | 6.1 | 1.5 | −0.7 | 10.7 |
| 2009 | 17.6% | −26.2 | −17.7 | 17.1 | 21.8 | 14.0 | −1.8 | 8.9 | 13.0 | 2.0 | −6.0 | 4.3 | −1.4 |
| 2008 | −54.9% | 0.7 | −11.4 | −2.9 | 7.0 | −6.9 | −17.4 | 6.8 | −1.0 | −6.2 | −21.9 | −18.5 | 0.4 |
| 2007 | −19.2% | 0.9 | −3.0 | −0.5 | 3.9 | 2.4 | −4.0 | −9.1 | 2.6 | 2.4 | −1.7 | −8.1 | −5.8 |
| 2006 | 18.9% | 0.9 | 2.1 | 0.3 | 4.3 | −3.8 | −0.5 | 2.3 | 1.2 | 4.0 | 2.3 | 0.7 | 3.8 |
| 2005 | 6.2% | −2.2 | −0.7 | −3.8 | 0.2 | 3.0 | 1.3 | 1.6 | −1.6 | 0.9 | 3.1 | 4.8 | 0.0 |
| 2004 | 10.9% | 3.3 | 2.9 | −1.2 | −4.3 | 1.7 | 0.4 | −2.1 | 3.3 | −0.9 | 0.5 | 3.1 | 4.1 |
| 2003 | 30.5% | −1.3 | −3.1 | −0.9 | 12.6 | 5.1 | 0.4 | 4.4 | −1.2 | 0.9 | 6.9 | −0.4 | 4.5 |
| 2002 | −14.7% | −1.1 | −1.7 | 6.6 | −2.5 | −0.3 | −4.3 | −8.3 | 1.9 | −11.5 | 9.1 | 3.7 | −5.4 |
| 2001 | −9.4% | −0.2 | −6.7 | −3.0 | 3.6 | 4.4 | −0.7 | −0.9 | −6.6 | −5.6 | −1.4 | 6.5 | 2.0 |
| 2000 | 25.9% | −3.0 | −10.7 | 18.3 | 1.0 | 2.2 | −4.8 | 8.8 | 10.2 | 2.2 | −0.9 | −5.1 | 8.5 |
| 1999 | 2.7% | 1.7 | 1.6 | 3.2 | 7.0 | −6.0 | 4.3 | −6.1 | −4.4 | −5.2 | 15.5 | −4.4 | −2.4 |
| 1998 | 0.5% | 0.5 |
Each month runs from the last close of the month before. The first month counts from the first close.
How risky is XLF compared with the S&P 500?#
Measured from October 2021 to October 2026, on the days both traded.
- Beta 0.84. When the S&P 500 moved 1% in a day, XLF tended to move about 0.84%.
- Correlation 0.79. XLF moved with the S&P 500 some of the time.
- Up and down months. In months the S&P 500 rose, XLF rose 87% as much on average. In months it fell, XLF fell 96% as much.
| Measure | XLF | S&P 500 (SPY) |
|---|---|---|
| Return per year | 8.9% | 12.8% |
| Volatility | 18.3% | 17.1% |
| Worst drop | −25.8% | −24.5% |
| Sharpe ratio | 0.56 | 0.79 |
| Sortino ratio | 0.80 | 1.15 |
| Calmar ratio | 0.34 | 0.52 |
Volatility is how much the price swings in a year. The Sharpe ratio is return per unit of volatility, the Sortino ratio counts only the falls, and the Calmar ratio is the return per year over the worst drop. Higher ratios mean more return for the risk taken.
Is XLF above its 200-day average?#
XLF closed 4.1% above its 200-day average on October 16, 2026. A rule that holds XLF only above that average would hold it today.
- vs 200-day average
- +4.1%
- above it
- 50-day vs 200-day
- +5.3%
- trend rising
- vs 52-week high
- −4.9%
- high of $58.35
A moving average is the average close over the last so many days. Trend rules such as the 10-month moving average strategy hold a fund only while it is above one. You can build that rule for XLF and backtest it in a minute.
What was XLF’s worst drop?#
A drawdown is how far a fund falls from its last high point. XLF’s worst fall was −82.7%, from June 1, 2007 to March 6, 2009. It got back to that high on July 5, 2017. On October 16, 2026 it was 4.9% below its highest close.
| Drop | From the high | To the bottom | Back to the high |
|---|---|---|---|
| −82.7% | Jun 1, 2007 | Mar 6, 200921 months | Jul 5, 20178.3 years |
| −42.9% | Feb 14, 2020 | Mar 23, 202038 days | Jan 6, 20219 months |
| −36.6% | Jan 3, 2001 | Oct 9, 200221 months | Jan 15, 200415 months |
| −26.5% | May 13, 1999 | Feb 25, 20009 months | Jun 2, 20003 months |
| −25.8% | Jan 12, 2022 | Oct 12, 20229 months | Feb 22, 202416 months |
Big drops are normal for some funds. They matter because selling during a drop locks in the loss.
What does XLF hold?#
This fund owns stocks of the financial companies in the S&P 500, such as banks, insurance companies and payment firms. It gives investors one ticker for that whole group. Its value goes up and down with that one part of the stock market.
It tracks the Financial Select Sector Index. It had 76 holdings as of October 15, 2026, according to SPDR (State Street).
What is the XLF expense ratio?#
XLF charges 0.08% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.08% fee comes to about $8 a year. Of the 162 ETFs on Tactfolio, 60% charge more.
You never get a bill for it. The fund takes the fee out of its own value a little each day.
Which Tactfolio strategies hold XLF?#
One classic strategy holds XLF at least some of the time. Each is a set of written rules you can open, test and copy.
- Faber sector rotation (the three strongest US sectors), by Mebane Faber, 2010
How does XLF compare with similar ETFs?#
Funds that can stand in for XLF:
- VFH: Vanguard Financials ETF, 0.09% a year
- VTV: Vanguard Morningstar Value ETF, 0.03% a year
- SCHV: Schwab U.S. Large-Cap Value ETF, 0.04% a year
- SPYV: State Street SPDR Portfolio S&P 500 Value ETF, 0.04% a year
See all 6 XLF alternatives, compared on the same dates as XLF.
Test XLF in your own rules#
Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add XLF, and see how a rule such as “hold it only above its 200-day average” would have done. Strategies run on daily prices and hold US stocks and ETFs only.
The details#
Prices come from Tactfolio’s stored daily prices for XLF and SPY. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns. Beta and correlation compare daily returns with the S&P 500 over the same dates.
Fund facts come from SPDR (State Street). We checked them on October 16, 2026. Read what a backtest simulates and how to read drawdown and CAGR for more on these measures.
Common questions#
What is the expense ratio of XLF?#
XLF charges 0.08% a year, according to SPDR (State Street) as of October 16, 2026. That is about $8 a year for every $10,000 you hold.
When did XLF start trading?#
XLF started trading on December 16, 1998. It is run by SPDR (State Street).
What does XLF track?#
XLF tracks the Financial Select Sector Index. This fund owns stocks of the financial companies in the S&P 500, such as banks, insurance companies and payment firms.
How much has XLF returned per year?#
From December 1998 to October 2026, XLF returned about 6.0% a year with dividends reinvested. Its worst drop was −82.7%. Past returns do not tell you what it will do next.
Is XLF above its 200-day moving average?#
On October 16, 2026, XLF closed 4.1% above its 200-day moving average. This page updates after each US market close.
Which strategies use XLF?#
One of Tactfolio’s classic strategies hold XLF, including Faber sector rotation (the three strongest US sectors).