EUFN vs XLF Stock Comparison: AI Score, Valuation, Performance and Upside
EUFN provides European bank and insurance company exposure often trading at lower valuations with higher dividends, while XLF gives U.S. financial sector exposure including the dominant U.S. banks and payments companies (Visa, Mastercard, Berkshire). U.S. banks have dramatically outperformed European banks on profitability metrics over the past decade.
EUFN vs XLF is the geographic financial sector comparison — European bank value-and-dividend versus U.S. financial sector quality-and-growth, reflecting very different regulatory, profitability, and business model environments.
EUFN holds the edge across 3 of 5 key metrics in this comparison. EUFN has delivered stronger 1-year price return (+26.34% vs +4.80% for XLF).
- Want European financial sector exposure as a value-oriented, higher-dividend alternative to U.S. banks
- See European bank valuations as offering contrarian value given historically low earnings multiples
- Are making a tactical bet on European economic recovery and ECB rate normalization benefiting European bank profitability
- Want U.S. financial sector exposure including the world's largest and most profitable banks alongside payments and insurance
- Value U.S. financial company profitability and returns on equity significantly above European counterparts
- Want liquid, core U.S. financial sector exposure including Visa, Mastercard, and Berkshire Hathaway alongside major banks
| Metric | EUFN | XLF |
|---|---|---|
| ETF scorei | 81.0 | 55.0 |
| Latest closei | $41.12 | $55.86 |
| 1M returni | -1.96% | -2.82% |
| 6M returni | +27.94% | +14.80% |
| 1Y returni | +26.34% | +4.80% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | EUFN | XLF |
|---|---|---|
| 1Y ago | $13.2K (+32.0%) started 2025-09-18 | $10.64K (+6.4%) started 2025-09-18 |
| 5Y ago | $36.04K (+260.4%) started 2021-09-20 | $18.16K (+81.6%) started 2021-09-20 |
| 10Y ago | $61.06K (+510.6%) started 2016-09-19 | $42.22K (+322.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | EUFN | XLF |
|---|---|---|
| Expense ratioi | 0.49% | 0.08% |
| Total assets (AUM)i | $4.24B | $54.59B |
| Dividend yieldi | 3.92% | 1.40% |
| Trailing P/Ei | 12.55 | 15.84 |
| Betai | 0.79 | 0.88 |
| 52-week change | 26.34% | 4.80% |
| Metric | EUFN | XLF |
|---|---|---|
| 1Y returni | +26.34% | +4.80% |
| 6M returni | +27.94% | +14.80% |
| 1M returni | -1.96% | -2.82% |
| 1Y Sharpe ratio | 1.04 | 0.09 |
| Betai | 0.79 | 0.88 |
| Dividend yieldi | 3.92% | 1.40% |
| 5Y CAGR | +22.50% | +10.68% |
Over the past year, EUFN and XLF have moved moderately in the same direction (correlation of 0.56), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | EUFN | XLF |
|---|---|---|---|
| 1Y | Growthi | +26.34% | +4.80% |
| CAGRi | +26.36% | +4.80% | |
| Volatilityi | 20.28% | 14.58% | |
| Sharpe ratioi | 1.04 | 0.09 | |
| Sortino ratioi | 1.58 | 0.12 | |
| Max drawdowni | 14.77% | 14.79% | |
| Current drawdowni | 4.53% | 4.61% | |
| Avg drawdowni | 2.56% | 4.40% | |
| Ulcer Indexi | 4.10% | 5.82% | |
| Max daily dropi | 3.65% | 3.35% | |
| Max wkly dropi | 8.23% | 4.81% | |
| 5Y | Growthi | +175.52% | +65.95% |
| CAGRi | +22.50% | +10.68% | |
| Volatilityi | 21.72% | 18.37% | |
| Sharpe ratioi | 0.84 | 0.40 | |
| Sortino ratioi | 1.21 | 0.57 | |
| Max drawdowni | 35.16% | 25.81% | |
| Current drawdowni | 4.53% | 4.61% | |
| Avg drawdowni | 6.53% | 7.80% | |
| Ulcer Indexi | 10.39% | 10.62% | |
| Max daily dropi | 8.34% | 7.32% | |
| Max wkly dropi | 15.52% | 12.19% | |
| 10Y | Growthi | +266.32% | +246.44% |
| CAGRi | +13.87% | +13.24% | |
| Volatilityi | 23.62% | 22.07% | |
| Sharpe ratioi | 0.48 | 0.47 | |
| Sortino ratioi | 0.67 | 0.67 | |
| Max drawdowni | 53.26% | 42.86% | |
| Current drawdowni | 4.53% | 4.61% | |
| Avg drawdowni | 12.15% | 7.58% | |
| Ulcer Indexi | 17.05% | 10.75% | |
| Max daily dropi | 14.97% | 13.71% | |
| Max wkly dropi | 25.20% | 22.99% |
| Category | EUFN | XLF |
|---|---|---|
| Fund name | iShares MSCI Europe Financials ETF | State Street Financial Select Sector SPDR ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.49% | 0.08% |
| Total assets (AUM)i | $4.24B | $54.59B |
| Dividend yieldi | 3.92% | 1.40% |
- European financial companies (particularly banks) often trade at lower valuations than U.S. counterparts, providing potentially cheaper entry into financial sector exposure
- High dividend yields from European banks and insurers — European financial companies have historically returned more capital through dividends than U.S. peers
- Exposure to diverse European financial markets across UK, France, Germany, Switzerland, Italy, Netherlands, and Spain
- Includes not only banks but also Visa, Mastercard, and Berkshire Hathaway — providing broader financial sector exposure beyond pure banking
- U.S. financial companies (particularly JPMorgan) have generated significantly higher returns on equity than European banks over the past decade
- XLF is one of the most liquid sector ETFs with tight bid-ask spreads and high daily trading volume
- European banks face structural challenges including below-average return on equity relative to U.S. banks, legacy bad loan portfolios, and regulatory complexity across multiple jurisdictions
- Currency risk — EUFN is not currency-hedged, so EUR/GBP/CHF vs USD exchange rates affect returns for USD-based investors
- European economic health and ECB policy direction significantly affect European bank earnings and asset quality
- Berkshire Hathaway and Visa/Mastercard (non-bank financial) are large XLF weightings and may dilute pure banking cycle exposure
- U.S. bank valuations are generally higher than European banks, reflecting higher profitability but also higher multiples
- Federal Reserve rate decisions and loan loss provisions significantly affect U.S. bank earnings in XLF's banking components
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