BHP vs. XLU

Last updated Jun 9, 2026

BHP (BHP Group) is a stock, while XLU (State Street Utilities Select Sector SPDR ETF) is Utilities Equities fund tracking the Utilities Select Sector Index. Over the past 10 years, BHP returned 21.94%/yr vs 8.99%/yr for XLU. At a 0.28 correlation, their price movements are largely independent.

Performance

BHP vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BHP Group (BHP) and State Street Utilities Select Sector SPDR ETF (XLU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BHP achieves a 41.38% return, which is significantly higher than XLU's 2.66% return. Over the past 10 years, BHP has outperformed XLU with an annualized return of 21.94%, while XLU has yielded a comparatively lower 8.99% annualized return.

BHP

• 1D: 1.18%
• 1M: -1.20%
• YTD: 41.38%
• 6M: 46.29%
• 1Y: 75.94%
• 3Y*: 17.37%
• 5Y*: 14.81%
• 10Y*: 21.94%

XLU

• 1D: -1.87%
• 1M: -2.68%
• YTD: 2.66%
• 6M: 3.35%
• 1Y: 10.26%
• 3Y*: 12.85%
• 5Y*: 9.10%
• 10Y*: 8.99%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BHP vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BHP BHP Group	41.38%	28.91%	-24.64%	16.50%	44.34%	0.91%	25.37%	24.50%	10.55%	33.87%
XLU State Street Utilities Select Sector SPDR ETF	2.66%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between BHP and XLU is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (10Y) Calculated over the trailing 10-year period	0.18
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.28

The correlation between BHP and XLU shifts across timeframes, from 0.18 (10 years) to 0.28 (all time), reflecting how their relationship changes across market environments.

Return for Risk

BHP vs. XLU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BHP

BHP Risk / Return Rank: 90
BHP Sharpe Ratio Rank: 92
BHP Sortino Ratio Rank: 89
BHP Omega Ratio Rank: 87
BHP Calmar Ratio Rank: 88
BHP Martin Ratio Rank: 93

XLU

XLU Risk / Return Rank: 22
XLU Sharpe Ratio Rank: 22
XLU Sortino Ratio Rank: 21
XLU Omega Ratio Rank: 21
XLU Calmar Ratio Rank: 26
XLU Martin Ratio Rank: 21

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BHP vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BHP Group (BHP) and State Street Utilities Select Sector SPDR ETF (XLU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BHP	XLU	Difference
Sharpe ratio: Return per unit of total volatility	2.41	0.71	+1.71
Sortino ratio: Return per unit of downside risk	2.97	1.04	+1.93
Omega ratio: Gain probability vs. loss probability	1.37	1.13	+0.24
Calmar ratio: Return relative to maximum drawdown	3.86	1.12	+2.73
Martin ratio: Return relative to average drawdown	14.16	2.47	+11.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BHP vs. XLU - Sharpe Ratio Comparison

The current BHP Sharpe Ratio is 2.41, which is higher than the XLU Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of BHP and XLU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BHP	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	0.71	+1.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	0.53	-0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.47	+0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.40	-0.07

Drawdowns

BHP vs. XLU - Drawdown Comparison

The maximum BHP drawdown since its inception was -76.22%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for BHP and XLU.

Drawdown Indicators

	BHP	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-76.22%	-51.98%	-24.24%
Max Drawdown (1Y) Largest decline over 1 year	-19.80%	-9.18%	-10.62%
Max Drawdown (3Y) Largest decline over 3 years	-37.21%	-17.26%	-19.95%
Max Drawdown (5Y) Largest decline over 5 years	-37.21%	-25.26%	-11.95%
Max Drawdown (10Y) Largest decline over 10 years	-44.29%	-36.07%	-8.22%
Current Drawdown Current decline from peak	-10.14%	-8.18%	-1.96%
Average Drawdown Average peak-to-trough decline	-21.29%	-10.22%	-11.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.38%	4.16%	+1.22%

Volatility

BHP vs. XLU - Volatility Comparison

BHP Group (BHP) has a higher volatility of 12.75% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.60%. This indicates that BHP's price experiences larger fluctuations and is considered to be riskier than XLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BHP	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.75%	5.60%	+7.15%
Volatility (6M) Calculated over the trailing 6-month period	25.95%	11.70%	+14.25%
Volatility (1Y) Calculated over the trailing 1-year period	31.73%	14.64%	+17.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.31%	17.34%	+14.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.31%	19.27%	+13.04%

Dividends

BHP vs. XLU - Dividend Comparison

BHP's dividend yield for the trailing twelve months is around 3.18%, more than XLU's 2.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BHP BHP Group	3.18%	3.64%	5.98%	4.98%	22.44%	9.98%	3.67%	8.59%	4.89%	3.61%	1.68%	9.38%
XLU State Street Utilities Select Sector SPDR ETF	2.73%	2.71%	2.96%	3.39%	2.92%	2.79%	3.14%	2.95%	3.33%	3.33%	3.41%	3.67%

Frequently Asked Questions

Can I hold both BHP and XLU in my portfolio?

BHP and XLU have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BHP or XLU?

BHP has higher volatility (12.75%) compared to XLU (5.60%). In terms of maximum drawdown, BHP dropped -76.22% vs XLU's -51.98%.

Which has better risk-adjusted returns?

BHP currently has the higher Sharpe Ratio (2.41 vs 0.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.