Fidelity or State Street: Which Financial ETF Offers Better Returns?

The article compares two sector ETFs for financial exposure, focusing on how structural differences may influence income and risk. Fidelity MSCI Financials Index ETF (NYSEMKT: FNCL) is contrasted with State Street Financial Select Sector SPDR ETF (NYSEMKT: XLF). Both funds have identical 0.08% expense ratios, but the article highlights that Fidelity offers a higher trailing-12-month dividend yield of 1.7% versus 1.5% for State Street, potentially affecting total return. It also describes beta and return metrics, noting beta is based on five-year monthly returns and that the 1-year figure reflects total return over the trailing 12 months. XLF tracks the Financial Select Sector Index for the financial segment of the S&P 500 with 76 holdings, and its top positions include Berkshire Hathaway (11.8%), JPMorgan Chase (11%), and Visa (7.5%). Launched in 1998, it has 98% financial services exposure. FNCL tracks the MSCI USA IMI Financials 25/50 Index with 386 holdings, launched in 2013. The article says YTD performance has been negative for both, with Fidelity around -4.8% to -5.3% and then trails off before completing the remaining comparison.