DFNL vs XLF
Davis Select Financial ETF vs State Street Financial Select Sector SPDR ETF
Which is better, DFNL or XLF?
Nearly the same fund. XLF costs less.
XLF has a lower expense ratio. DFNL led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. DFNL is less concentrated, with 56.8% of the fund in its ten largest positions against 57.3%.
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 | DFNL | XLF |
|---|---|---|
| Expense Ratio | 0.63% | 0.08%Best |
| AUM | $442M | $51.9B |
| Dividend Yield | 1.37% | 1.40% |
| Holdings | 90 | 160 |
| YTD Return | -0.91% | +0.47%Best |
| 1Y Return | +8.37%Best | +4.02% |
| 3Y Return (annualized) | +22.68%Best | +19.43% |
| 5Y Return (annualized) | +10.68%Best | +8.82% |
| Volatility (annualized) | 19.8% | 19.4%Best |
| Max Drawdown | -44.5% | -43.3%Best |
| $10,000 over 5 years | $16,609Best | $15,260 |
| Top 10 Weight | 56.8%Best | 57.3% |
| Fund Family | Davis ETFs | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jan 11, 2017 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 12, 2017 to Oct 14, 2026 (9.8 years).
DFNL 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 9.8 years both funds cover.
DFNL vs XLF Performance
Davis Select Financial ETF (DFNL) is an ETF from Davis ETFs and State Street Financial Select Sector SPDR ETF (XLF) is an ETF from SPDR State Street Global Advisors. Over the past year DFNL returned +8.37% while XLF returned +4.02%. Year to date, DFNL is down 0.91% versus a gain of 0.47% for XLF.
Over three years, DFNL compounded at +22.68% per year against +19.43% for XLF; over five years the annualized figures are +10.68% and +8.82% respectively. Across the full 10-year window we track, DFNL has the edge at +11.26% annualized vs +10.18%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFNL has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 19.4% 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 -44.5% for DFNL and -43.3% 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DFNL charges 0.63% per year while XLF charges 0.08%. On a $10,000 position that is $63 vs $8 annually, a gap of $55 per year that compounds over a long holding period. On income, DFNL currently yields 1.37% against 1.40% for XLF.
Holdings Overlap
67.9% of DFNL's money is in holdings XLF also owns. 46.4% of XLF's money is in holdings DFNL also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 30 positions we hold weights for in DFNL and 77 in XLF, against full books of 90 and 160.
What only one of them owns
Our book lists 58 positions for XLF that do not appear in our book for DFNL (53.1% of the fund), and 5 for DFNL that do not appear in XLF (15.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFNL | Weight in XLF | Difference |
|---|---|---|---|
| BRK.BBerkshire Hathaway Inc Brk/B Us Equity | 5.53% | 11.59% | 6.06% |
| JPMJpmorgan Chase | 4.60% | 11.82% | 7.22% |
| COFCapital One Financial Corp. | 10.56% | 1.61% | 8.95% |
| WFCWells Fargo & Co. | 4.91% | 3.42% | 1.49% |
| USBUS Bancorp | 6.39% | 1.21% | 5.18% |
| BACBank of America Corp.: Financials | 2.30% | 5.07% | 2.77% |
| FITBFifth Third Bancorp | 5.73% | 0.61% | 5.12% |
| CBChubb Ltd. | 4.52% | 1.51% | 3.01% |
| PNCPnc Financial Services Group Inc. | 4.40% | 1.21% | 3.19% |
| AXPAmerican Express Co. | 3.25% | 2.14% | 1.11% |
67.9% of DFNL is already inside XLF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFNL or XLF?
DFNL has an expense ratio of 0.63% while XLF charges 0.08%. XLF is the cheaper option, by $55 a year on a $10,000 investment.
Which performed better, DFNL or XLF?
Over the past year DFNL returned +8.37% vs +4.02% for XLF, so DFNL leads on 1-year performance. Over the longest common window we track (10 years), DFNL annualized +11.26% vs +10.18% for XLF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFNL or XLF?
DFNL has been the more volatile fund at 19.8% annualized versus 19.4% for XLF. Worst drawdown: DFNL -44.5% vs XLF -43.3%.
Should I hold both DFNL and XLF?
DFNL and XLF have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between DFNL and XLF?
67.9% of DFNL's money is in holdings XLF also owns. 46.4% of XLF's is in holdings DFNL also owns. They hold 18 positions in common, counted across the 30 positions we hold weights for in DFNL and 77 in XLF.
Which pays a higher dividend, DFNL or XLF?
DFNL yields 1.37% while XLF yields 1.40%, so XLF currently pays the higher dividend yield.
Is XLF better than DFNL?
XLF has a lower expense ratio. DFNL led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. DFNL is less concentrated, with 56.8% of the fund in its ten largest positions against 57.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.