GOVT vs. XLU
GOVT (iShares U.S. Treasury Bond ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, GOVT returned 0.79%/yr vs 8.99%/yr for XLU. At a 0.15 correlation, their price movements are largely independent. GOVT charges 0.05%/yr vs 0.08%/yr for XLU.
Performance
GOVT vs. XLU - Performance Comparison
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Returns By Period
In the year-to-date period, GOVT achieves a -0.44% return, which is significantly lower than XLU's 2.66% return. Over the past 10 years, GOVT has underperformed XLU with an annualized return of 0.79%, while XLU has yielded a comparatively higher 8.99% annualized return.
GOVT
- 1D
- -0.11%
- 1M
- -0.70%
- YTD
- -0.44%
- 6M
- -0.15%
- 1Y
- 3.62%
- 3Y*
- 2.77%
- 5Y*
- -0.59%
- 10Y*
- 0.79%
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%
GOVT vs. XLU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | -0.44% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
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 GOVT and XLU is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.23 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | 0.15 |
The correlation between GOVT and XLU shifts across timeframes, from 0.15 (all time) to 0.27 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
GOVT vs. XLU — Risk / Return Rank
GOVT
XLU
GOVT vs. XLU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.
| GOVT | XLU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.32 | ||
| Sortino ratioReturn per unit of downside risk | +0.50 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.13 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.27 | 1.12 | +0.15 |
| Martin ratioReturn relative to average drawdown | 3.66 | 2.47 | +1.19 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| GOVT | XLU | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.02 | 0.71 | +0.32 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.10 | 0.53 | -0.63 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.47 | -0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.40 | -0.14 |
Drawdowns
GOVT vs. XLU - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for GOVT and XLU.
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Drawdown Indicators
| GOVT | XLU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -51.98% | +32.91% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -9.18% | +6.33% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -17.26% | +11.83% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -25.26% | +8.66% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -36.07% | +17.00% |
Current DrawdownCurrent decline from peak | -7.48% | -8.18% | +0.70% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -10.22% | +4.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.99% | 4.16% | -3.17% |
Volatility
GOVT vs. XLU - Volatility Comparison
The current volatility for iShares U.S. Treasury Bond ETF (GOVT) is 1.05%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.60%. This indicates that GOVT 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.
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Volatility by Period
| GOVT | XLU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.05% | 5.60% | -4.55% |
Volatility (6M)Calculated over the trailing 6-month period | 2.53% | 11.70% | -9.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.56% | 14.64% | -11.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 17.34% | -11.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.23% | 19.27% | -14.04% |
GOVT vs. XLU - Expense Ratio Comparison
GOVT has a 0.05% expense ratio, which is lower than XLU's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
GOVT vs. XLU - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.60%, more than XLU's 2.73% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.60% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
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
GOVT and XLU have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLU has higher volatility (5.60%) compared to GOVT (1.05%). In terms of maximum drawdown, GOVT dropped -19.07% vs XLU's -51.98%.
On 10-year performance, XLU leads with 8.99% vs 0.79% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLU has performed better with a 8.99% return vs 0.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.08% for XLU.
GOVT has the higher dividend yield at 3.60%, compared with 2.73% for XLU.
GOVT is categorized as Government Bonds, while XLU is Utilities Equities. GOVT tracks ICE U.S. Treasury Core Bond Index, while XLU tracks Utilities Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.05% for GOVT and 0.08% for XLU.
GOVT currently has the higher Sharpe Ratio (1.02 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.
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