A head-to-head comparison of State Street Energy Select Sector SPDR ETF and State Street Financial Select Sector SPDR ETF covering yield, cost, risk, and income potential.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.
See our curated list of related YouTube videos on XLE and XLF.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
XLE has outpaced XLF over the trailing twelve months, posting a 35.35% total return against 11.58%. The picture flips over 10 years, though — XLF has compounded at 13.58% a year, ahead of XLE at 9.37%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 21.7% for XLE. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 16, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Dec 1998” measures every fund from December 22, 1998 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Quick verdict
XLE (State Street Energy Select Sector SPDR ETF) and XLF (State Street Financial Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.
XLE offers the higher yield at 2.70% vs 1.32% for XLF. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
They track different benchmarks: XLE is linked to Energy Select Sector Index while XLF tracks Financial Select Sector Index, which means their performance drivers differ.
XLF is the larger fund by assets ($49.5B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, XLE would generate roughly $22.50/month, while XLF would produce $11.00/month, at current distribution rates. Both pay quarterly distributions.
XLE yield2.70%
XLF yield1.32%
Monthly diff on $10K$11.50
Cost & efficiency
Over 10 years on $10,000, XLE would cost approximately $90 in fees vs $90 for XLF (simplified, not compounded). Both charge the same expense ratio.
XLE ER0.09%
XLF ER0.09%
Strategy & risk
XLE tracks Energy Select Sector Index with an oil approach, while XLF tracks Financial Select Sector Index with an index approach. Beta is -0.02 for XLE and 0.75 for XLF, indicating XLE is less volatile relative to the market.
XLE beta-0.02
XLF beta0.75
Fund details
XLE is managed by State Street (launched 12/16/1998) with $39.1B in assets. XLF is managed by State Street (launched 12/16/1998) with $49.5B in assets.
Do us a favor — if you found this comparison useful, please share it with a friend researching dividend ETFs.
Frequently asked questions
Is XLE or XLF better for dividend income?
It depends on your goals. XLE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between XLE and XLF?
XLE (State Street Energy Select Sector SPDR ETF) tracks Energy Select Sector Index with an oil approach, while XLF (State Street Financial Select Sector SPDR ETF) tracks Financial Select Sector Index with an index approach. They are issued by State Street and State Street respectively.
Can I hold both XLE and XLF?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Which has lower fees, XLE or XLF?
XLE and XLF both charge the same expense ratio of 0.09%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.
How much income does $10,000 in XLE vs XLF generate?
At current rates, $10,000 in XLE would generate roughly $22.50 per month ($270.00 annually). The same in XLF would produce about $11.00 per month ($132.00 annually).
Which has performed better historically, XLE or XLF?
XLE has outpaced XLF over the trailing twelve months, posting a 35.35% total return against 11.58%. The picture flips over 10 years, though — XLF has compounded at 13.58% a year, ahead of XLE at 9.37%. XLF has been the steadier holding, though — annualized volatility of 16.1% against 21.7% for XLE. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
Explore related screeners
Lateral filters that include these funds — browse the full peer set on DividendVision.
Still deciding? Compare them against your own portfolio
See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.
