FXU vs. XLU

Last updated Jun 4, 2026

FXU (First Trust Utilities AlphaDEX Fund) and XLU (State Street Utilities Select Sector SPDR ETF) are both Utilities Equities funds - FXU tracks the StrataQuant Utilities Index while XLU tracks the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, FXU returned 9.21%/yr vs 9.15%/yr for XLU. Their correlation of 0.86 suggests significant overlap in exposure. FXU charges 0.62%/yr vs 0.08%/yr for XLU.

Performance

FXU vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Utilities AlphaDEX Fund (FXU) 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, FXU achieves a 6.16% return, which is significantly higher than XLU's 3.11% return. Both investments have delivered pretty close results over the past 10 years, with FXU having a 9.21% annualized return and XLU not far behind at 9.15%.

FXU

• 1D: -0.04%
• 1M: -3.16%
• YTD: 6.16%
• 6M: 5.04%
• 1Y: 13.42%
• 3Y*: 17.52%
• 5Y*: 11.68%
• 10Y*: 9.21%

XLU

• 1D: -0.43%
• 1M: -5.74%
• YTD: 3.11%
• 6M: 1.25%
• 1Y: 9.11%
• 3Y*: 13.74%
• 5Y*: 9.25%
• 10Y*: 9.15%

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

FXU vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXU First Trust Utilities AlphaDEX Fund	6.16%	21.86%	22.50%	-2.12%	3.68%	17.67%	1.53%	11.67%	5.43%	0.98%
XLU State Street Utilities Select Sector SPDR ETF	3.11%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between FXU and XLU is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.86

The correlation between FXU and XLU has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.

FXU vs. XLU - Sectors Allocation Comparison

Sectors	FXU	XLU
Utilities	92.0%	100.0%
Industrials	4.2%	-
Energy	3.7%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

FXU vs. XLU — Risk / Return Rank

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

FXU

FXU Risk / Return Rank: 28
FXU Sharpe Ratio Rank: 28
FXU Sortino Ratio Rank: 26
FXU Omega Ratio Rank: 26
FXU Calmar Ratio Rank: 32
FXU Martin Ratio Rank: 30

XLU

XLU Risk / Return Rank: 19
XLU Sharpe Ratio Rank: 19
XLU Sortino Ratio Rank: 18
XLU Omega Ratio Rank: 18
XLU Calmar Ratio Rank: 22
XLU Martin Ratio Rank: 19

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.

FXU vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Utilities AlphaDEX Fund (FXU) 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.

	FXU	XLU	Difference
Sharpe ratio: Return per unit of total volatility	1.02	0.63	+0.40
Sortino ratio: Return per unit of downside risk	1.45	0.94	+0.51
Omega ratio: Gain probability vs. loss probability	1.18	1.12	+0.06
Calmar ratio: Return relative to maximum drawdown	1.56	1.00	+0.57
Martin ratio: Return relative to average drawdown	4.43	2.24	+2.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXU vs. XLU - Sharpe Ratio Comparison

The current FXU Sharpe Ratio is 1.02, which is higher than the XLU Sharpe Ratio of 0.63. The chart below compares the historical Sharpe Ratios of FXU 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

	FXU	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	0.63	+0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.54	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.48	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	0.40	+0.02

Drawdowns

FXU vs. XLU - Drawdown Comparison

The maximum FXU drawdown since its inception was -49.00%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for FXU and XLU.

Drawdown Indicators

	FXU	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-49.00%	-51.98%	+2.98%
Max Drawdown (1Y) Largest decline over 1 year	-8.63%	-9.18%	+0.55%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	-17.26%	-0.20%
Max Drawdown (5Y) Largest decline over 5 years	-21.87%	-25.26%	+3.39%
Max Drawdown (10Y) Largest decline over 10 years	-34.81%	-36.07%	+1.26%
Current Drawdown Current decline from peak	-7.34%	-7.78%	+0.44%
Average Drawdown Average peak-to-trough decline	-7.64%	-10.22%	+2.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.07%	4.09%	-1.02%

Volatility

FXU vs. XLU - Volatility Comparison

The current volatility for First Trust Utilities AlphaDEX Fund (FXU) is 4.65%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.41%. This indicates that FXU experiences smaller price fluctuations and is considered to be less risky than XLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXU	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.65%	5.41%	-0.76%
Volatility (6M) Calculated over the trailing 6-month period	10.14%	11.53%	-1.39%
Volatility (1Y) Calculated over the trailing 1-year period	13.17%	14.57%	-1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.58%	17.32%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.33%	19.26%	-0.93%

FXU vs. XLU - Expense Ratio Comparison

FXU has a 0.62% expense ratio, which is higher than XLU's 0.08% expense ratio.

Dividends

FXU vs. XLU - Dividend Comparison

FXU's dividend yield for the trailing twelve months is around 2.20%, less than XLU's 2.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXU First Trust Utilities AlphaDEX Fund	2.20%	2.29%	2.41%	2.52%	2.03%	2.00%	3.97%	2.34%	2.40%	3.81%	2.62%	3.90%
XLU State Street Utilities Select Sector SPDR ETF	2.72%	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 FXU and XLU in my portfolio?

With a correlation of 0.93, FXU and XLU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FXU or XLU?

XLU has higher volatility (5.41%) compared to FXU (4.65%). In terms of maximum drawdown, FXU dropped -49.00% vs XLU's -51.98%.

Which ETF is better, FXU or XLU?

On 10-year performance, FXU leads with 9.21% vs 9.15% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, FXU has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXU or XLU?

Over the 10-year period, FXU has performed better with a 9.21% return vs 9.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXU or XLU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.62% for FXU.

Which ETF pays a higher dividend yield, FXU or XLU?

XLU has the higher dividend yield at 2.72%, compared with 2.20% for FXU.

What is the main difference between FXU and XLU?

FXU tracks StrataQuant Utilities Index, while XLU tracks Utilities Select Sector Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.62% for FXU and 0.08% for XLU.

Which has better risk-adjusted returns?

FXU currently has the higher Sharpe Ratio (1.02 vs 0.63), 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.