IBM vs. XLU
IBM (International Business Machines Corporation) 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, IBM returned 11.09%/yr vs 9.20%/yr for XLU. At a 0.33 correlation, their price movements are largely independent.
Performance
IBM vs. XLU - Performance Comparison
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Returns By Period
In the year-to-date period, IBM achieves a -6.89% return, which is significantly lower than XLU's 5.04% return. Over the past 10 years, IBM has outperformed XLU with an annualized return of 11.09%, while XLU has yielded a comparatively lower 9.20% annualized return.
IBM
- 1D
- -0.95%
- 1M
- 26.84%
- YTD
- -6.89%
- 6M
- -10.81%
- 1Y
- -0.65%
- 3Y*
- 29.65%
- 5Y*
- 18.01%
- 10Y*
- 11.09%
XLU
- 1D
- 1.09%
- 1M
- -0.31%
- YTD
- 5.04%
- 6M
- 5.48%
- 1Y
- 11.85%
- 3Y*
- 13.79%
- 5Y*
- 9.41%
- 10Y*
- 9.20%
IBM vs. XLU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | -6.89% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
XLU State Street Utilities Select Sector SPDR ETF | 5.04% | 16.03% | 23.31% | -7.18% | 1.44% | 17.70% | 0.51% | 25.93% | 3.94% | 12.05% |
Correlation
The correlation between IBM and XLU is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.29 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998 | 0.33 |
Over the past year, the correlation between IBM and XLU has dropped to 0.02 - well below their long-term average of 0.33, suggesting their price drivers have been diverging.
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Return for Risk
IBM vs. XLU — Risk / Return Rank
IBM
XLU
IBM vs. XLU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IBM | XLU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.83 | ||
| Sortino ratioReturn per unit of downside risk | -0.92 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.15 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | -0.02 | 1.30 | -1.32 |
| Martin ratioReturn relative to average drawdown | -0.05 | 2.80 | -2.84 |
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Drawdowns
IBM vs. XLU - Drawdown Comparison
The maximum IBM drawdown since its inception was -69.40%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for IBM and XLU.
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Drawdown Indicators
| IBM | XLU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.40% | -51.98% | -17.42% |
Max Drawdown (1Y)Largest decline over 1 year | -30.96% | -9.18% | -21.78% |
Max Drawdown (3Y)Largest decline over 3 years | -30.96% | -17.26% | -13.70% |
Max Drawdown (5Y)Largest decline over 5 years | -30.96% | -25.26% | -5.70% |
Max Drawdown (10Y)Largest decline over 10 years | -40.59% | -36.07% | -4.52% |
Current DrawdownCurrent decline from peak | -17.31% | -6.05% | -11.26% |
Average DrawdownAverage peak-to-trough decline | -20.12% | -10.22% | -9.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.38% | 4.25% | +10.13% |
Volatility
IBM vs. XLU - Volatility Comparison
International Business Machines Corporation (IBM) has a higher volatility of 21.43% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.59%. This indicates that IBM'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.
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Volatility by Period
| IBM | XLU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 21.43% | 5.59% | +15.84% |
Volatility (6M)Calculated over the trailing 6-month period | 34.62% | 11.68% | +22.94% |
Volatility (1Y)Calculated over the trailing 1-year period | 39.45% | 14.66% | +24.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.16% | 17.34% | +9.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.59% | 19.27% | +7.32% |
Dividends
IBM vs. XLU - Dividend Comparison
IBM's dividend yield for the trailing twelve months is around 2.47%, less than XLU's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 2.47% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
XLU State Street Utilities Select Sector SPDR ETF | 2.67% | 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
IBM and XLU have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (21.43%) compared to XLU (5.59%). In terms of maximum drawdown, IBM dropped -69.40% vs XLU's -51.98%.
XLU currently has the higher Sharpe Ratio (0.81 vs -0.02), 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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