# How Lloyds Banking Group (LYG) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/lyg
> Data as of October 22, 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 LYG alone. It places LYG (Lloyds Banking Group plc) against 19 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 LYG stands in the market, and of the alternatives worth a closer look.

Period covered: LYG's full trading record, from November 2001 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 22, 2026.

## Key findings

- **Right now:** The slide is LYG's own: it is 63.6% below its high, against 1.9% for the S&P 500. LYG has gone against the market, falling 11.1% over the past 3 months while the S&P 500 rose 2.5%.
- **Stock or market?:** The weakness is LYG's own: it fell 11.1% over the past 3 months while the banks ETF IXG (iShares Global Financials ETF) fell 0.7%. The S&P 500 rose 2.5%. Its bank peers did not move as one over the past 3 months: TD (Toronto-Dominion Bank) rose 3.9%, while BIRK (Birkenstock Holding) fell 21.6%.
- **Past 1 to 3 years:** LYG lagged its bank peers in 2023, then moved up the pack in 2025. Over the past year, LYG rose 20.6% against 15.6% for the S&P 500 and 16.9% for the Nasdaq 100. The same gap shows up over 3 years (207% against 88.4%).
- **Long term:** LYG turned $10,000 into $31,500 over the past decade, against $41,600 in the S&P 500. Even so, the past 5 years have been the better stretch: LYG rose 147% against 80.3% for the S&P 500, after trailing over the decade.
- **In a crash:** Across six sell-offs, LYG has typically fallen 1.9 times as far as the S&P 500.
- **Diversification:** LYG is some diversification, but not a hedge: a correlation of 0.49 with the S&P 500 over 5 years and 0.49 with the total US market, more closely than 70% of stocks worth at least $300 million.
- **Better options**
  - **Popular alternatives:** UBS (UBS Group), BAP (Credicorp) and HSBC earned more than LYG with less volatility over the past 5 years. UBS returned 24.9% a year at 30.4% volatility, against 19.8% a year at 32.1%.
  - **Nearby categories and themes:** PBAM (Private Bancorp of America, regional banks) and CBOE (Cboe Global Markets, capital markets) earned more than LYG with less volatility over the past 5 years. PBAM returned 27.5% a year at 18.9% volatility, against 19.8% a year at 32.1%.
  - **Whole market:** Few investments have done better on both counts: only 65 of the 3,641 stocks and funds worth at least $500 million earned more than LYG with less volatility over the past 5 years, among them WMT (Walmart), XOM (Exxonmobil) and ABBV (AbbVie).

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

This chart tracks a hypothetical $10,000 investment in LYG over the past 24 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of LYG over the same span and LYG's popular alternatives, among those that traded for the entire period.

- $10,000 invested in LYG at the end of September 2002 would have grown to $8,582 by September 2026, less than the $144,215 it would have become in SPY, an S&P 500 fund.
- All eight other investments on the chart ended ahead of LYG, and BAP finished highest, at $1,161,661.

## LYG 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.

- LYG is still 63.6% below its all-time high.
- LYG's deepest decline since it began trading in 2001 was 94.8%, from October 2007 to March 2009. It has not yet climbed back to that peak.
- Over 24 full calendar years, LYG's best was 2025, when it returned 104%, and its worst was 2008, when it lost 77.6%. It lost money in 12 of those years.

- Type: Stock, Financials (Banks - Regional)
- Trading since: November 27, 2001
- Market value: $77B
- Volatility (5 years): 32.1%; Sharpe ratio: 0.73
- Worst decline ever: −94.8%, from October 9, 2007 to March 5, 2009; not yet back at its high

| Period | LYG total return |
| --- | --- |
| 1 month | −6.9% |
| 3 months | −11.1% |
| 6 months | +0.6% |
| year to date | +1.1% |
| 1 year | +20.6% |
| 3 years | +207% |
| 5 years | +147% |
| 10 years | +215% |

## LYG against the whole market

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

### How does LYG rank among all stocks?

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

- LYG's 3-year return ranks in the top 13% of the 3,016 stocks worth at least $300 million with 3 years of history.

| Measure | LYG | Rank |
| --- | --- | --- |
| 1-year return | +20.6% | 1,248 of 3,282 (top 39%) |
| 3-year return | +207% | 378 of 3,016 (top 13%) |
| 5-year return | +147% | 460 of 2,897 (top 16%) |
| 10-year return | +215% | 819 of 2,201 (top 38%) |
| Volatility, 5 years | 32.1% | 918 of 2,897 (top 32%) |
| Sharpe ratio, 5 years | 0.73 | 406 of 2,897 (top 15%) |
| Worst decline, past 10 years | −66.5% | 1,159 of 2,184 (top 54%) |

### What has beaten LYG 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).

- 51 stocks and 14 ETFs worth at least $500 million sit in the green region: each earned more than LYG over the past 5 years with smaller price swings. That is 2% of the 3,641 screened. Few investments beat it on both counts.
- Among those with at least half LYG's swings, CAH has the best return for its risk: 41.7% a year at 24.7% volatility, 23% less than LYG's 32.1%, and a Sharpe ratio (return above cash per unit of volatility) of 1.54 against 0.73 for LYG.
- Among LYG's popular alternatives, HSBC, BAP and UBS are in the region. HSBC earned 32.8% a year against 19.8% a year for LYG, at 25.9% volatility, 19% less than LYG's 32.1%.

### Is there a better investment than LYG?

The table below lists investments that beat LYG 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 LYG's popular alternatives, UBS, BAP and HSBC earned more than LYG with less volatility over the past 5 years. UBS returned 24.9% a year at 30.4% volatility, against 19.8% a year at 32.1%.
- Looking beyond its popular alternatives, PBAM (regional banks) and CBOE (capital markets) earned more than LYG with less volatility over the past 5 years. PBAM returned 27.5% a year at 18.9% volatility, against 19.8% a year at 32.1%.
- Few investments have done better on both counts: only 65 of the 3,641 stocks and funds worth at least $500 million earned more than LYG with less volatility over the past 5 years, among them WMT, XOM and ABBV.

The 15 strongest of 65 investments that beat LYG over the past 5 years, out of 3,641 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with LYG | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| LYG: Lloyds Banking Group plc (this page) |  | +19.8% | 32.1% | 0.73 | −66.5% | +215% |  |  |
| [ABBV](https://betterthanspy.com/research/abbv): AbbVie Inc. | Specialty Pharmaceuticals | +25.5% | 23.4% | 1.09 | −45.1% | +600% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MCK](https://betterthanspy.com/research/mck): McKesson Corporation | Health Care Distribution | +37.8% | 25.1% | 1.41 | −38.1% | +582% | 0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [PGR](https://betterthanspy.com/research/pgr): The Progressive Corporation | Property & Casualty Insurance | +21.8% | 25.7% | 0.90 | −30.3% | +849% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [TRV](https://betterthanspy.com/research/trv): The Travelers Companies, Inc. | Property & Casualty Insurance | +22.4% | 22.3% | 1.02 | −46.3% | +360% | 0.36 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [CAH](https://betterthanspy.com/research/cah): Cardinal Health, Inc. | Health Care Distribution | +41.7% | 24.7% | 1.54 | −46.1% | +345% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RS: Reliance Steel & Aluminum Co. | Metals & Mining | +24.8% | 28.1% | 0.94 | −40.8% | +639% | 0.33 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| CBOE: Cboe Global Markets, Inc. | Capital Markets | +22.0% | 25.1% | 0.92 | −43.2% | +481% | 0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| NHC: National HealthCare Corporation | Health Care Facilities | +31.2% | 28.6% | 1.10 | −35.3% | +385% | 0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [PM](https://betterthanspy.com/research/pm): Philip Morris International Inc. | Tobacco | +21.3% | 23.4% | 0.94 | −42.9% | +240% | 0.59 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DBJP: Xtrackers MSCI Japan Hedged Equity ETF | Japan Equity | +20.9% | 19.3% | 1.09 | −31.3% | +339% | 0.22 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| EPU: iShares MSCI Peru and Global Exposure ETF | International Equity | +28.1% | 24.9% | 1.12 | −51.0% | +258% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VRTX](https://betterthanspy.com/research/vrtx): Vertex Pharmaceuticals Incorporated | Rare Disease Therapeutics | +23.9% | 29.1% | 0.89 | −41.6% | +580% | 0.17 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [PH](https://betterthanspy.com/research/ph): Parker-Hannifin Corporation | Industrial Machinery | +26.0% | 28.9% | 0.95 | −54.7% | +755% | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FBIZ: First Business Financial Services, Inc. | Regional Banks | +23.2% | 29.4% | 0.86 | −50.2% | +315% | 0.45 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [E](https://betterthanspy.com/research/e): Eni S.p.A. | Integrated Oil & Gas | +23.7% | 25.6% | 0.96 | −61.4% | +283% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## LYG against its popular alternatives

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

### How do LYG'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.

- Four of the 18 popular alternatives, led by HSBC, BAP and UBS, were both more rewarding and calmer than LYG over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, LYG returned 19.8% a year, more than the S&P 500's 12.5%, with higher volatility (32.1% against 17.2%).

### Has LYG consistently beaten its popular alternatives?

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

- Seven of the 19 popular alternatives, led by BAP, BBVA and SAN, outperformed LYG in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- BAP, BBVA and SAN outperformed LYG in every long-term period and in all but one short-term period, the most consistent record in the group.
- HSBC, BAP and RY earned more for the risk they took than LYG (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 LYG | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| LYG: Lloyds Banking Group plc (this page) | +20.6% | +207% | +147% | +215% |  |  | 0.73 |
| BAP: Credicorp Ltd. | +53.7% | +258% | +267% | +281% | 5/5 short-term, 3/3 long-term | all-weather | 1.01 |
| [BBVA](https://betterthanspy.com/research/bbva): Banco Bilbao Vizcaya Argentaria, S.A. | +35.8% | +275% | +418% | +515% | 4/5 short-term, 3/3 long-term | all-weather | 1.16 |
| [SAN](https://betterthanspy.com/research/san): Banco Santander, S.A. | +34.9% | +301% | +297% | +307% | 4/5 short-term, 3/3 long-term | all-weather | 0.99 |
| [CM](https://betterthanspy.com/research/cm): Canadian Imperial Bank of Commerce | +46.1% | +265% | +144% | +409% | 5/5 short-term, 2/3 long-term | consistent | 0.94 |
| [UBS](https://betterthanspy.com/research/ubs): UBS Group AG | +26.3% | +115% | +204% | +363% | 4/5 short-term, 2/3 long-term | consistent | 0.89 |
| [ING](https://betterthanspy.com/research/ing): ING Groep N.V. | +41.5% | +203% | +196% | +330% | 4/5 short-term, 2/3 long-term | consistent | 0.86 |
| [HSBC](https://betterthanspy.com/research/hsbc): HSBC Holdings plc | +44.7% | +199% | +313% | +314% | 4/5 short-term, 2/3 long-term | consistent | 1.23 |
| NWG: NatWest Group plc | +18.2% | +273% | +238% | +488% | 2/5 short-term, 3/3 long-term |  | 0.89 |
| [BCS](https://betterthanspy.com/research/bcs): Barclays PLC | +9.3% | +240% | +132% | +232% | 0/5 short-term, 2/3 long-term |  | 0.67 |
| [DB](https://betterthanspy.com/research/db): Deutsche Bank AG | −1.7% | +240% | +167% | +161% | 0/5 short-term, 2/3 long-term |  | 0.71 |
| [RY](https://betterthanspy.com/research/ry): Royal Bank of Canada | +41.5% | +176% | +124% | +361% | 5/5 short-term, 1/3 long-term |  | 0.98 |
| [TD](https://betterthanspy.com/research/td): The Toronto-Dominion Bank | +59.4% | +147% | +114% | +319% | 5/5 short-term, 1/3 long-term |  | 0.87 |
| [BMO](https://betterthanspy.com/research/bmo): Bank of Montreal | +40.2% | +150% | +92.4% | +304% | 5/5 short-term, 1/3 long-term |  | 0.72 |
| [MA](https://betterthanspy.com/research/ma): Mastercard Incorporated | +11.5% | +68.0% | +81.9% | +551% | 4/5 short-term, 1/3 long-term |  | 0.62 |
| [V](https://betterthanspy.com/research/v): Visa Inc. | +20.9% | +83.1% | +86.1% | +435% | 4/5 short-term, 1/3 long-term |  | 0.66 |
| [BNS](https://betterthanspy.com/research/bns): The Bank of Nova Scotia | +51.5% | +165% | +86.2% | +191% | 5/5 short-term, 0/3 long-term |  | 0.73 |
| [PRU](https://betterthanspy.com/research/pru): Prudential Financial, Inc. | +21.9% | +53.1% | +32.3% | +123% | 5/5 short-term, 0/3 long-term |  | 0.35 |
| EWU: iShares MSCI United Kingdom ETF | +16.7% | +74.3% | +72.4% | +131% | 4/5 short-term, 0/3 long-term |  | 0.75 |
| BIRK: Birkenstock Holding plc | −21.7% | −13.2% | — | — | 1/5 short-term, 0/3 long-term |  | — |

### How did LYG do year by year?

This table shows each investment's total return in every full calendar year since 2002, along with where LYG ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, LYG finished in the top quarter in seven of 24 years and in the bottom quarter in ten. In 2025, it ranked 4 of 20.
- LYG finished ahead of the S&P 500 in ten of its 24 full calendar years.
- Among its popular alternatives, MA came out ahead of LYG most often, in 15 of the 19 years both traded.

| Year | LYG | SPY |
| --- | --- | --- |
| 2025 | +104% | +17.7% |
| 2024 | +20.2% | +24.9% |
| 2023 | +14.5% | +26.2% |
| 2022 | −9.7% | −18.2% |
| 2021 | +34.6% | +28.7% |
| 2020 | −36.5% | +18.3% |
| 2019 | +36.9% | +31.2% |
| 2018 | −28.4% | −4.6% |
| 2017 | +26.8% | +21.7% |
| 2016 | −25.9% | +12.0% |

## Risk and diversification

How LYG 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 LYG's worst declines?

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

- In all five of LYG's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after LYG fell 55.8% from May 2002 to March 2003; it did not regain that peak until February 2006, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −94.8% | October 9, 2007 | March 5, 2009 | not yet | −54.7% | 2008 financial crisis |
| −55.8% | May 6, 2002 | March 10, 2003 | February 1, 2006 | −21.9% | dot-com bust |
| −11.0% | July 18, 2007 | September 17, 2007 | October 4, 2007 | −4.1% |  |
| −10.8% | February 20, 2007 | March 5, 2007 | April 16, 2007 | −5.9% |  |
| −10.5% | February 14, 2002 | February 28, 2002 | April 17, 2002 | −0.8% | dot-com bust |

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

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

- LYG fell further than the S&P 500 in eight of the nine crashes it has traded through. The clearest case was the 2008 financial crisis, when LYG fell 94.8% and the S&P 500 fell 55.2%.
- Among its popular alternatives, BAP held up best, falling less than LYG in eight of the nine crashes they both traded through.
- LYG began trading after the dot-com bust, but 13 of its popular alternatives lived through it. The mildest fall among them was RY's 21.6%, against 47.5% for the S&P 500.

| Crash | Dates | LYG fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −94.8% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −4.5% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −41.6% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −34.6% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −4.3% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −23.3% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −53.4% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −40.5% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −7.8% | −3.4% |

### How closely does LYG 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.

- 15 of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than LYG's 0.82, led by HSBC, BBVA and MA.
- V took just 79% of the S&P 500's losses, against 130% for LYG, while still keeping 93% of its gains.
- Over the past 10 years, LYG captured 106% of the S&P 500's gains in rising months and 130% of its losses in falling months, with a beta of 1.20. It amplified the market's moves in both directions.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| LYG: Lloyds Banking Group plc (this page) | 106% | 130% | 1.20 |
| BAP: Credicorp Ltd. | 88.0% | 82.0% | 0.88 |
| [BBVA](https://betterthanspy.com/research/bbva): Banco Bilbao Vizcaya Argentaria, S.A. | 121% | 97.0% | 1.11 |
| [SAN](https://betterthanspy.com/research/san): Banco Santander, S.A. | 101% | 92.0% | 1.02 |
| [CM](https://betterthanspy.com/research/cm): Canadian Imperial Bank of Commerce | 108% | 106% | 1.07 |
| [UBS](https://betterthanspy.com/research/ubs): UBS Group AG | 116% | 120% | 1.18 |
| [ING](https://betterthanspy.com/research/ing): ING Groep N.V. | 136% | 155% | 1.36 |
| [HSBC](https://betterthanspy.com/research/hsbc): HSBC Holdings plc | 79.0% | 53.0% | 0.58 |
| NWG: NatWest Group plc | 128% | 124% | 1.13 |
| [BCS](https://betterthanspy.com/research/bcs): Barclays PLC | 113% | 131% | 1.26 |
| [DB](https://betterthanspy.com/research/db): Deutsche Bank AG | 102% | 118% | 1.21 |
| [RY](https://betterthanspy.com/research/ry): Royal Bank of Canada | 97.0% | 88.0% | 0.88 |
| [TD](https://betterthanspy.com/research/td): The Toronto-Dominion Bank | 89.0% | 80.0% | 0.88 |
| [BMO](https://betterthanspy.com/research/bmo): Bank of Montreal | 104% | 112% | 1.12 |
| [MA](https://betterthanspy.com/research/ma): Mastercard Incorporated | 105% | 88.0% | 0.95 |
| [V](https://betterthanspy.com/research/v): Visa Inc. | 93.0% | 79.0% | 0.87 |
| [BNS](https://betterthanspy.com/research/bns): The Bank of Nova Scotia | 97.0% | 120% | 1.05 |
| [PRU](https://betterthanspy.com/research/pru): Prudential Financial, Inc. | 102% | 146% | 1.25 |
| EWU: iShares MSCI United Kingdom ETF | 71.0% | 89.0% | 0.75 |

### What diversifies LYG?

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 LYG into DXJ would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+23.4% for LYG alone, +24.9% for the mix).
- Among large ETFs, DXJ, EMLP and SMH have moved largely independently of LYG over the past 5 years, with correlations of 0.44 or lower, and each still earned a positive 5-year return.
- FIX made money in eight of the 12 calendar years in which LYG lost money.

| Investment | Correlation with LYG | 5Y return | Volatility | Sharpe | Rose in LYG's 12 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.22 | +225% | 19.1% | 1.34 | 6 of 12 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.44 | +103% | 14.5% | 1.06 | 3 of 12 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | 0.31 | +304% | 37.0% | 0.94 | 7 of 12 |
| [XLE](https://betterthanspy.com/research/xle): State Street Energy Select Sector SPDR ETF | 0.27 | +178% | 25.5% | 0.94 | 6 of 12 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | 0.25 | +120% | 19.0% | 0.93 | 7 of 12 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.36 | +130% | 20.9% | 0.91 | 2 of 12 |
| AMLP: Alerian MLP ETF | 0.33 | +114% | 18.9% | 0.90 | 4 of 12 |
| EWT: iShares MSCI Taiwan ETF | 0.37 | +147% | 24.3% | 0.87 | 6 of 12 |

## Common questions

### What was LYG's worst drawdown?

LYG's deepest decline since it began trading in 2001 was 94.8%, from October 2007 to March 2009. It has not yet climbed back to that peak.

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

Over 24 full calendar years, LYG's best year was 2025, when it returned 104%. Its worst was 2008, with a return of -77.6%.

### Is there a better investment than LYG?

Among LYG's popular alternatives, UBS, BAP and HSBC earned more than LYG with less volatility over the past 5 years. UBS returned 24.9% a year at 30.4% volatility, against 19.8% a year at 32.1%. Looking beyond its popular alternatives, PBAM (regional banks) and CBOE (capital markets) earned more than LYG with less volatility over the past 5 years. PBAM returned 27.5% a year at 18.9% volatility, against 19.8% a year at 32.1%.

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

Yes. LYG's volatility over the past 5 years was 32.1%, 1.9 times the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, LYG's return lands within 32.1% 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 LYG's Sharpe ratio?

LYG's Sharpe ratio over the past 5 years was 0.73, against 0.78 for the S&P 500, so LYG 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 LYG with the S&P 500?

Over the past 5 years, LYG's monthly returns had a correlation of 0.49 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 LYG instead: the lower it is, the more that option would diversify a LYG holding.

### What are the best alternatives to LYG?

Of the 19 popular alternatives we compared, seven outperformed LYG in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: BAP, BBVA and SAN.

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

LYG finished ahead of the S&P 500 (SPY) in ten of 24 full calendar years. In 2025, it returned +104%, against +17.7% for the index.

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

LYG fell less than the S&P 500 (SPY) in one of the nine major crashes it has traded through, and further in eight. The clearest case was the 2008 financial crisis, when LYG fell 94.8% and the S&P 500 fell 55.2%.

### What diversifies LYG?

These had a low correlation with LYG over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.22), EMLP (correlation 0.44) and SMH (correlation 0.31); among large stocks, CAH (correlation 0.19), CLS (correlation 0.13) and MCK (correlation 0.04). A correlation near zero means the two have moved largely independently.

## More research

- [Banco Bilbao Vizcaya Argentaria (BBVA) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/bbva)
- [Banco Santander (SAN) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/san)
- [Canadian Imperial Bank of Commerce (CM) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/cm)
- [UBS Group (UBS) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ubs)
- [ING Groep (ING) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ing)
- [HSBC Performance, Alternatives and Market Rank](https://betterthanspy.com/research/hsbc)
- [Barclays (BCS) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/bcs)
- [Deutsche Bank (DB) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/db)
- [Royal Bank of Canada (RY) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ry)
- [Toronto-Dominion Bank (TD) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/td)
- [Bank of Montreal (BMO) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/bmo)
- [Mastercard (MA) Performance, Alternatives and Market Rank](https://betterthanspy.com/research/ma)

## Explore further

- Full page with charts: https://betterthanspy.com/research/lyg
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against LYG live: https://betterthanspy.com/?b=LYG