Which Financial ETF Is Better, State Street's XLF or Fidelity's FNCL?

State Street's XLF and Fidelity's FNCL are both low-cost financial sector ETFs with identical 0.08% expense ratios. XLF focuses on 76 large-cap S&P 500 financial stocks with $50.4B in assets and tighter spreads, while FNCL offers broader diversification with ~400 holdings across market caps and a higher 1.7% dividend yield. The choice depends on whether investors prefer mega-cap stability (XLF) or broader sector exposure (FNCL).