FXU vs. XLU
Compare and contrast key facts about First Trust Utilities AlphaDEX Fund (FXU) and Utilities Select Sector SPDR Fund (XLU).
FXU and XLU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXU is a passively managed fund by First Trust that tracks the performance of the StrataQuant Utilities Index. It was launched on May 8, 2007. XLU is a passively managed fund by State Street that tracks the performance of the Utilities Select Sector Index. It was launched on Dec 16, 1998. Both FXU and XLU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FXU or XLU.
Key characteristics
| FXU | XLU | |
|---|---|---|
| YTD Return | 11.22% | 15.17% |
| 1Y Return | 13.56% | 13.02% |
| 3Y Return (Ann) | 7.07% | 6.73% |
| 5Y Return (Ann) | 7.25% | 7.63% |
| 10Y Return (Ann) | 7.58% | 9.28% |
| Sharpe Ratio | 0.76 | 0.75 |
| Daily Std Dev | 17.07% | 16.96% |
| Max Drawdown | -48.25% | -52.27% |
| Current Drawdown | -0.14% | -2.06% |
Correlation
The correlation between FXU and XLU is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FXU vs. XLU - Performance Comparison
In the year-to-date period, FXU achieves a 11.22% return, which is significantly lower than XLU's 15.17% return. Over the past 10 years, FXU has underperformed XLU with an annualized return of 7.58%, while XLU has yielded a comparatively higher 9.28% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FXU vs. XLU - Expense Ratio Comparison
FXU has a 0.62% expense ratio, which is higher than XLU's 0.13% expense ratio.
Risk-Adjusted Performance
FXU vs. XLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Utilities AlphaDEX Fund (FXU) and Utilities Select Sector SPDR Fund (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.
Dividends
FXU vs. XLU - Dividend Comparison
FXU's dividend yield for the trailing twelve months is around 2.37%, less than XLU's 3.01% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXU First Trust Utilities AlphaDEX Fund | 2.37% | 2.52% | 2.03% | 2.00% | 3.97% | 2.34% | 2.40% | 3.81% | 2.62% | 3.90% | 2.14% | 4.14% |
XLU Utilities Select Sector SPDR Fund | 3.01% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.41% | 3.67% | 3.19% | 3.86% |
Drawdowns
FXU vs. XLU - Drawdown Comparison
The maximum FXU drawdown since its inception was -48.25%, smaller than the maximum XLU drawdown of -52.27%. Use the drawdown chart below to compare losses from any high point for FXU and XLU. For additional features, visit the drawdowns tool.
Volatility
FXU vs. XLU - Volatility Comparison
The current volatility for First Trust Utilities AlphaDEX Fund (FXU) is 3.12%, while Utilities Select Sector SPDR Fund (XLU) has a volatility of 3.29%. 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.