# How Truist Financial (TFC) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/tfc
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on TFC alone. It places TFC (Truist Financial Corporation) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where TFC stands in the market, and of the alternatives worth a closer look.

Period covered: TFC's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** TFC has gone against the market, falling 5.0% over the past 6 months while the S&P 500 rose 9.1%. Not every peer went the same way. Over the past 6 months, USB (U.S. Bancorp) rose 5.5% and HBAN (Huntington Bancshares) fell 7.2%.
- **Stock or market?:** TFC's 6.3% fall over the past 3 months is part of a broader regional banks sell-off: the regional banks ETF KRE (State Street SPDR S&P Regional Banking ETF) fell 6.4%, with USB (U.S. Bancorp, down 5.5%) and PNC (PNC Financial Services Group, down 10.8%).
- **Past 1 to 3 years:** Over the past year, TFC rose 13.6% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. It took about 3 years for TFC to win back the 59.1% it lost from January 2022 to May 2023. the S&P 500 fell 11.1% over those same dates.
- **Long term:** TFC turned $10,000 into $18,300 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** Across seven sell-offs, TFC has typically fallen 1.3 times as far as the S&P 500. The 2023 regional bank crisis took 26.3% off TFC, against 3.4% for the S&P 500. That was more than USB (U.S. Bancorp, 19.7%) but less than KEY (KeyCorp, 34.2%).
- **Diversification:** Against the S&P 500, TFC has a correlation of 0.52 over 5 years, more closely than 76% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge. Over 10 years, TFC's beta versus the S&P 500 was 1.11: in the S&P 500's rising months it gained 86% as much as the index, and in falling months it lost 1.3 times as much.
- **Better options**
  - **Popular alternatives:** JPM (JPMorgan Chase & Co.), PNC (PNC Financial Services Group) and USB (U.S. Bancorp) earned more than TFC with less volatility over the past 5 years. JPM returned 17.3% a year at 24.3% volatility, against a loss of 1.2% a year at 31.6%.
  - **Nearby categories and themes:** RY (Royal Bank of Canada, banks) and CME (CME Group, capital markets) earned more than TFC with less volatility over the past 5 years. RY returned 17.3% a year at 18.2% volatility, against a loss of 1.2% a year at 31.6%.
  - **Whole market:** 1,417 of the 3,633 stocks and funds worth at least $500 million earned more than TFC with less volatility over the past 5 years, among them AAPL (Apple), MSFT (Microsoft) and VTI (Vanguard Morningstar Total Stock Market ETF).

## How much would $10,000 in TFC have grown?

This chart tracks a hypothetical $10,000 investment in TFC over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of TFC over the same span and TFC's popular alternatives, among those that traded for the entire period.

- $10,000 invested in TFC at the end of September 1997 would have grown to $49,043 by September 2026, less than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of TFC, and JPM finished highest, at $189,407.

## TFC at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- TFC's deepest decline since it began trading in 1986 was 66.6%, from September 2008 to March 2009. It took about four years from the low to climb back to its old high.
- Over 29 full calendar years, TFC's best was 1997, when it returned 81.3%, and its worst was 1999, when it lost 30.6%. It lost money in 11 of those years.
- TFC is 12.6% below its all-time high.

- Type: Stock, Financials (Banks - Regional)
- Trading since: October 17, 1986
- Market value: $58B
- Volatility (5 years): 31.6%; Sharpe ratio: 0.12
- Worst decline ever: −66.6%, from September 19, 2008 to March 5, 2009; back at its high by July 5, 2013

| Period | TFC total return |
| --- | --- |
| 1 month | −3.4% |
| 3 months | −6.3% |
| 6 months | −5.0% |
| year to date | −1.9% |
| 1 year | +13.6% |
| 3 years | +102% |
| 5 years | −5.7% |
| 10 years | +82.7% |

## TFC against the whole market

Where TFC ranks among every stock and fund, and what across the market has done better.

### How does TFC rank among all stocks?

This section ranks TFC on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- TFC lands in the broad middle of the market on every measure here. TFC's 3-year return ranks in the top 30% of the 3,017 stocks worth at least $300 million with 3 years of history.

| Measure | TFC | Rank |
| --- | --- | --- |
| 1-year return | +13.6% | 1,459 of 3,287 (top 45%) |
| 3-year return | +102% | 901 of 3,017 (top 30%) |
| 5-year return | −5.7% | 1,799 of 2,893 (top 63%) |
| 10-year return | +82.7% | 1,406 of 2,202 (top 64%) |
| Volatility, 5 years | 31.6% | 880 of 2,893 (top 31%) |
| Sharpe ratio, 5 years | 0.12 | 2,055 of 2,893 (top 72%) |
| Worst decline, past 10 years | −59.1% | 847 of 2,187 (top 39%) |

### What has beaten TFC on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 537 stocks and 880 ETFs worth at least $500 million sit in the green region: each earned more than TFC over the past 5 years with smaller price swings. That is 39% of the 3,633 screened.
- Among those with at least half TFC's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 22% less than TFC's 31.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.12 for TFC.
- Among TFC's popular alternatives, JPM, WFC and FNB are in the region. JPM earned 17.3% a year against a loss of 1.2% a year for TFC, at 24.3% volatility, 23% less than TFC's 31.6%.

### Is there a better investment than TFC?

The table below lists investments that beat TFC over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among TFC's popular alternatives, JPM, PNC and USB earned more than TFC with less volatility over the past 5 years. JPM returned 17.3% a year at 24.3% volatility, against a loss of 1.2% a year at 31.6%.
- Looking beyond its popular alternatives, RY (banks) and CME (capital markets) earned more than TFC with less volatility over the past 5 years. RY returned 17.3% a year at 18.2% volatility, against a loss of 1.2% a year at 31.6%.
- Across the whole market, 1,417 of the 3,633 stocks and funds worth at least $500 million earned more than TFC with less volatility over the past 5 years, among them AAPL, MSFT and VTI.

The 15 strongest of 1,417 investments that beat TFC over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with TFC | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| TFC: Truist Financial Corporation (this page) |  | −1.2% | 31.6% | 0.12 | −59.1% | +82.7% |  |  |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | Software | +12.5% | 28.2% | 0.56 | −37.1% | +946% | 0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.68 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.14 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | Food & Beverages | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VXUS](https://easycompare.io/research/vxus): Vanguard Total International Stock ETF | International Equity | +8.2% | 16.4% | 0.57 | −36.0% | +140% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MRK](https://easycompare.io/research/mrk): Merck & Co., Inc. | Pharmaceuticals | +16.3% | 24.8% | 0.74 | −43.4% | +241% | 0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [AMGN](https://easycompare.io/research/amgn): Amgen Inc. | Biotechnology | +19.6% | 24.9% | 0.85 | −24.9% | +266% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VEA](https://easycompare.io/research/vea): Vanguard FTSE Developed Markets ETF | Developed International Equity | +9.3% | 16.9% | 0.61 | −35.8% | +153% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [PG](https://easycompare.io/research/pg): The Procter & Gamble Company | Household & Personal Products | +5.1% | 18.3% | 0.37 | −23.8% | +145% | 0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LIN](https://easycompare.io/research/lin): Linde plc | Chemicals | +11.5% | 20.9% | 0.63 | −32.6% | +394% | 0.25 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [CB](https://easycompare.io/research/cb): Chubb Limited | Property & Casualty Insurance | +15.7% | 20.4% | 0.82 | −42.6% | +248% | 0.38 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [TRV](https://easycompare.io/research/trv): The Travelers Companies, Inc. | Property & Casualty Insurance | +22.4% | 22.3% | 1.02 | −46.3% | +347% | 0.44 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## TFC against its popular alternatives

The investments people most often weigh against TFC, compared period by period and year by year.

### How do TFC's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- 15 of the 23 popular alternatives, led by JPM, WFC and WTFC, were both more rewarding and calmer than TFC over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, TFC returned -1.2% a year, less than the S&P 500's 12.7%, with higher volatility (31.6% against 17.1%).

### Has TFC consistently beaten its popular alternatives?

This section compares TFC with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- 16 of the 23 popular alternatives, led by EWBC, USB and RF, outperformed TFC in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- EWBC, USB and RF outperformed TFC in every long-term period and in all but one short-term period, the most consistent record in the group.
- JPM, MTB and UBSI earned more for the risk they took than TFC (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of TFC | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| TFC: Truist Financial Corporation (this page) | +13.6% | +102% | −5.7% | +82.7% |  |  | 0.12 |
| EWBC: East West Bancorp, Inc. | +33.8% | +170% | +70.1% | +304% | 5/5 short-term, 3/3 long-term | all-weather | 0.48 |
| [USB](https://easycompare.io/research/usb): U.S. Bancorp | +30.3% | +117% | +17.6% | +94.6% | 5/5 short-term, 3/3 long-term | all-weather | 0.26 |
| RF: Regions Financial Corporation | +20.5% | +120% | +45.7% | +278% | 4/5 short-term, 3/3 long-term | all-weather | 0.40 |
| [FITB](https://easycompare.io/research/fitb): Fifth Third Bancorp | +29.6% | +151% | +38.9% | +255% | 4/5 short-term, 3/3 long-term | all-weather | 0.37 |
| WTFC: Wintrust Financial Corporation | +17.3% | +107% | +73.1% | +212% | 4/5 short-term, 3/3 long-term | all-weather | 0.51 |
| ZION: Zions Bancorporation, National Association | +28.1% | +139% | +17.9% | +167% | 4/5 short-term, 3/3 long-term | all-weather | 0.29 |
| KEY: KeyCorp | +24.6% | +143% | +11.9% | +143% | 4/5 short-term, 3/3 long-term | all-weather | 0.25 |
| [JPM](https://easycompare.io/research/jpm): JPMorgan Chase & Co. | +13.0% | +150% | +122% | +537% | 3/5 short-term, 3/3 long-term | consistent | 0.78 |
| CFG: Citizens Financial Group, Inc. | +31.5% | +205% | +55.0% | +266% | 3/5 short-term, 3/3 long-term | consistent | 0.43 |
| [PNC](https://easycompare.io/research/pnc): The PNC Financial Services Group, Inc. | +25.3% | +120% | +25.1% | +230% | 3/5 short-term, 3/3 long-term | consistent | 0.30 |
| [COF](https://easycompare.io/research/cof): Capital One Financial Corporation | −4.7% | +134% | +27.0% | +222% | 3/5 short-term, 3/3 long-term | consistent | 0.31 |
| MTB: M&T Bank Corporation | +23.4% | +111% | +59.3% | +143% | 3/5 short-term, 3/3 long-term | consistent | 0.46 |
| CFR: Cullen/Frost Bankers, Inc. | +28.4% | +99.0% | +39.9% | +181% | 5/5 short-term, 2/3 long-term | consistent | 0.38 |
| FNB: F.N.B. Corporation | +17.3% | +81.9% | +71.6% | +101% | 5/5 short-term, 2/3 long-term | consistent | 0.52 |
| UBSI: United Bankshares, Inc. | +36.4% | +102% | +56.5% | +88.6% | 5/5 short-term, 2/3 long-term | consistent | 0.46 |
| CBSH: Commerce Bancshares, Inc. | +10.3% | +50.5% | +7.4% | +119% | 4/5 short-term, 2/3 long-term | consistent | 0.18 |
| [WFC](https://easycompare.io/research/wfc): Wells Fargo & Company | −2.4% | +119% | +85.0% | +141% | 2/5 short-term, 3/3 long-term |  | 0.57 |
| FHN: First Horizon Corporation | +15.4% | +141% | +58.2% | +113% | 1/5 short-term, 3/3 long-term |  | 0.44 |
| [BAC](https://easycompare.io/research/bac): Bank of America Corporation | −0.6% | +107% | +21.6% | +282% | 0/5 short-term, 3/3 long-term |  | 0.28 |
| BOKF: BOK Financial Corporation | +17.3% | +85.5% | +42.1% | +128% | 2/5 short-term, 2/3 long-term |  | 0.40 |
| [SCHW](https://easycompare.io/research/schw): The Charles Schwab Corporation | −3.1% | +86.2% | +19.1% | +221% | 1/5 short-term, 2/3 long-term |  | 0.27 |
| HBAN: Huntington Bancshares Incorporated | +1.9% | +82.4% | +16.1% | +132% | 0/5 short-term, 2/3 long-term |  | 0.25 |
| WAL: Western Alliance Bancorporation | +1.9% | +89.9% | −29.5% | +133% | 1/5 short-term, 1/3 long-term |  | 0.20 |

### How did TFC do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where TFC ranked among its popular alternatives each year.

- Among its popular alternatives, CFG came out ahead of TFC most often, in nine of the 11 years both traded.
- Ranked against its popular alternatives each year, TFC finished in the top quarter in three of 29 years and in the bottom quarter in seven. In 2025, it ranked 12 of 24.
- TFC finished ahead of the S&P 500 in ten of its 29 full calendar years.

| Year | TFC | SPY |
| --- | --- | --- |
| 2025 | +19.1% | +17.7% |
| 2024 | +23.7% | +24.9% |
| 2023 | −8.6% | +26.2% |
| 2022 | −23.5% | −18.2% |
| 2021 | +26.1% | +28.7% |
| 2020 | −11.1% | +18.3% |
| 2019 | +34.6% | +31.2% |
| 2018 | −10.2% | −4.6% |
| 2017 | +8.7% | +21.7% |
| 2016 | +28.4% | +12.0% |

## Risk and diversification

How TFC has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were TFC's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of TFC's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after TFC fell 66.6% from September 2008 to March 2009; it did not regain that peak until July 2013, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −66.6% | September 19, 2008 | March 5, 2009 | July 5, 2013 | −44.1% | 2008 financial crisis |
| −59.1% | January 14, 2022 | May 4, 2023 | February 4, 2026 | −11.1% | 2022 bear market |
| −54.3% | December 26, 2019 | March 23, 2020 | February 12, 2021 | −30.6% | Covid crash |
| −51.2% | December 27, 2006 | July 15, 2008 | September 19, 2008 | −12.7% | 2008 financial crisis |
| −44.9% | October 5, 1989 | September 27, 1990 | November 14, 1991 | — |  |

### How did TFC do in stock market crashes?

This section measures how far TFC, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- TFC fell further than the S&P 500 in seven of the ten crashes it has traded through. The clearest case was the 2023 regional bank crisis, when TFC fell 26.3% and the S&P 500 fell 3.4%.
- Among its popular alternatives, CBSH held up best, falling less than TFC in eight of the ten crashes they both traded through.

| Crash | Dates | TFC fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −24.8% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −66.6% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | 0.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −27.2% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −24.4% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −20.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −53.5% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −35.8% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −26.3% | −3.4% |

### How closely does TFC move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- 23 of the 23 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than TFC's 0.68, led by JPM, SCHW and CFR.
- CFR took just 77% of the S&P 500's losses, against 126% for TFC, while still keeping 75% of its gains.
- Over the past 10 years, TFC captured 86% of the S&P 500's gains in rising months and 126% of its losses in falling months, with a beta of 1.11. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| TFC: Truist Financial Corporation (this page) | 86.0% | 126% | 1.11 |
| EWBC: East West Bancorp, Inc. | 111% | 118% | 1.39 |
| [USB](https://easycompare.io/research/usb): U.S. Bancorp | 89.0% | 130% | 1.05 |
| RF: Regions Financial Corporation | 113% | 127% | 1.26 |
| [FITB](https://easycompare.io/research/fitb): Fifth Third Bancorp | 102% | 114% | 1.22 |
| WTFC: Wintrust Financial Corporation | 97.0% | 117% | 1.20 |
| ZION: Zions Bancorporation, National Association | 97.0% | 122% | 1.17 |
| KEY: KeyCorp | 100% | 132% | 1.28 |
| [JPM](https://easycompare.io/research/jpm): JPMorgan Chase & Co. | 117% | 103% | 1.09 |
| CFG: Citizens Financial Group, Inc. | 118% | 140% | 1.37 |
| [PNC](https://easycompare.io/research/pnc): The PNC Financial Services Group, Inc. | 108% | 127% | 1.15 |
| [COF](https://easycompare.io/research/cof): Capital One Financial Corporation | 115% | 146% | 1.39 |
| MTB: M&T Bank Corporation | 75.0% | 86.0% | 0.86 |
| CFR: Cullen/Frost Bankers, Inc. | 75.0% | 77.0% | 0.97 |
| FNB: F.N.B. Corporation | 81.0% | 110% | 1.09 |
| UBSI: United Bankshares, Inc. | 73.0% | 103% | 1.01 |
| CBSH: Commerce Bancshares, Inc. | 59.0% | 64.0% | 0.77 |
| [WFC](https://easycompare.io/research/wfc): Wells Fargo & Company | 96.0% | 129% | 1.13 |
| FHN: First Horizon Corporation | 66.0% | 79.0% | 1.03 |
| [BAC](https://easycompare.io/research/bac): Bank of America Corporation | 127% | 146% | 1.36 |
| BOKF: BOK Financial Corporation | 92.0% | 123% | 1.13 |
| [SCHW](https://easycompare.io/research/schw): The Charles Schwab Corporation | 89.0% | 90.0% | 0.91 |
| HBAN: Huntington Bancshares Incorporated | 89.0% | 116% | 1.13 |
| WAL: Western Alliance Bancorporation | 117% | 169% | 1.52 |

### What diversifies TFC?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in TFC into DXJ would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+0.1% for TFC alone, +5.7% for the mix).
- FIX made money in eight of the 11 calendar years in which TFC lost money.
- Among large ETFs, LVHI, DXJ and GCOW have moved largely independently of TFC over the past 5 years, with correlations of 0.47 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with TFC | 5Y return | Volatility | Sharpe | Rose in TFC's 11 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.47 | +119% | 11.1% | 1.48 | 2 of 11 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.15 | +225% | 19.1% | 1.34 | 5 of 11 |
| GCOW: Pacer Global Cash Cows Dividend ETF | 0.43 | +93.4% | 13.6% | 1.04 | 2 of 11 |
| HDV: iShares Core High Dividend ETF | 0.47 | +83.3% | 13.0% | 1.00 | 2 of 11 |
| EWP: iShares MSCI Spain ETF | 0.45 | +140% | 20.3% | 0.97 | 3 of 11 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.49 | +135% | 19.7% | 0.97 | 2 of 11 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.33 | +323% | 36.9% | 0.97 | 5 of 11 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.48 | +85.0% | 13.8% | 0.96 | 3 of 11 |

## Common questions

### What was TFC's worst drawdown?

TFC's deepest decline since it began trading in 1986 was 66.6%, from September 2008 to March 2009. It took about four years from the low to climb back to its old high.

### What were TFC's best and worst years?

Over 29 full calendar years, TFC's best year was 1997, when it returned 81.3%. Its worst was 1999, with a return of -30.6%.

### Is there a better investment than TFC?

Among TFC's popular alternatives, JPM, PNC and USB earned more than TFC with less volatility over the past 5 years. JPM returned 17.3% a year at 24.3% volatility, against a loss of 1.2% a year at 31.6%. Looking beyond its popular alternatives, RY (banks) and CME (capital markets) earned more than TFC with less volatility over the past 5 years. RY returned 17.3% a year at 18.2% volatility, against a loss of 1.2% a year at 31.6%.

### Is TFC more volatile than the S&P 500?

Yes. TFC's volatility over the past 5 years was 31.6%, 1.8 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, TFC's return lands within 31.6% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is TFC's Sharpe ratio?

TFC's Sharpe ratio over the past 5 years was 0.12, against 0.79 for the S&P 500, so TFC earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is TFC with the S&P 500?

Over the past 5 years, TFC's monthly returns had a correlation of 0.52 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against TFC instead: the lower it is, the more that option would diversify a TFC holding.

### What are the best alternatives to TFC?

Of the 23 popular alternatives we compared, 16 outperformed TFC in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: EWBC, USB and RF.

### Did TFC outperform the S&P 500?

TFC finished ahead of the S&P 500 (SPY) in ten of 29 full calendar years. In 2025, it returned +19.1%, against +17.7% for the index.

### How did TFC do in stock market crashes?

TFC fell less than the S&P 500 (SPY) in two of the ten major crashes it has traded through, and further in seven. The clearest case was the 2023 regional bank crisis, when TFC fell 26.3% and the S&P 500 fell 3.4%.

### What diversifies TFC?

These had a low correlation with TFC over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.47), DXJ (correlation 0.15) and GCOW (correlation 0.43); among large stocks, CAH (correlation 0.11), CLS (correlation 0.35) and FIX (correlation 0.28). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/tfc
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against TFC live: https://betterthanspy.com/?b=TFC&utm_source=easycompare&utm_medium=research