KCE vs. XLU

Last updated Jun 24, 2026

KCE (SPDR S&P Capital Markets ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - KCE is a Financials Equities fund tracking the S&P Capital Markets Select Industry Index, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, KCE returned 17.98%/yr vs 9.35%/yr for XLU. At a 0.36 correlation, their price movements are largely independent. KCE charges 0.35%/yr vs 0.08%/yr for XLU.

Performance

KCE vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Capital Markets ETF (KCE) 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, KCE achieves a 2.72% return, which is significantly lower than XLU's 6.99% return. Over the past 10 years, KCE has outperformed XLU with an annualized return of 17.98%, while XLU has yielded a comparatively lower 9.35% annualized return.

KCE

• 1D: -0.99%
• 1M: 0.68%
• YTD: 2.72%
• 6M: 0.82%
• 1Y: 12.37%
• 3Y*: 25.43%
• 5Y*: 12.47%
• 10Y*: 17.98%

XLU

• 1D: 0.78%
• 1M: 0.02%
• YTD: 6.99%
• 6M: 7.17%
• 1Y: 14.05%
• 3Y*: 14.90%
• 5Y*: 10.60%
• 10Y*: 9.35%

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

KCE vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KCE SPDR S&P Capital Markets ETF	2.72%	10.76%	37.51%	32.04%	-22.14%	40.05%	30.82%	27.13%	-15.63%	32.01%
XLU State Street Utilities Select Sector SPDR ETF	6.99%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between KCE and XLU is 0.14, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.14
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.34
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Nov 15, 2005	0.36

Over the past year, the correlation between KCE and XLU has dropped to 0.14 - well below their long-term average of 0.36, suggesting their price drivers have been diverging.

KCE vs. XLU - Sectors Allocation Comparison

Sectors	KCE	XLU
Financial Services	98.8%	-
Technology	1.2%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	100.0%

Return for Risk

KCE vs. XLU — Risk / Return Rank

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

KCE

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

XLU

XLU Risk / Return Rank: 27
XLU Sharpe Ratio Rank: 28
XLU Sortino Ratio Rank: 25
XLU Omega Ratio Rank: 25
XLU Calmar Ratio Rank: 32
XLU Martin Ratio Rank: 26

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.

KCE vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Capital Markets ETF (KCE) 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.

	KCE	XLU	Difference
Sharpe ratio: Return per unit of total volatility	0.62	0.96	-0.34
Sortino ratio: Return per unit of downside risk	0.97	1.37	-0.40
Omega ratio: Gain probability vs. loss probability	1.12	1.17	-0.05
Calmar ratio: Return relative to maximum drawdown	0.71	1.54	-0.82
Martin ratio: Return relative to average drawdown	1.85	3.26	-1.41

KCE vs. XLU - Sharpe Ratio Comparison

The current KCE Sharpe Ratio is 0.62, which is lower than the XLU Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of KCE 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.

Drawdowns

KCE vs. XLU - Drawdown Comparison

The maximum KCE drawdown since its inception was -74.00%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for KCE and XLU.

Drawdown Indicators

	KCE	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-74.00%	-51.98%	-22.02%
Max Drawdown (1Y) Largest decline over 1 year	-17.44%	-9.18%	-8.26%
Max Drawdown (3Y) Largest decline over 3 years	-26.31%	-17.26%	-9.05%
Max Drawdown (5Y) Largest decline over 5 years	-34.45%	-25.26%	-9.19%
Max Drawdown (10Y) Largest decline over 10 years	-40.78%	-36.07%	-4.71%
Current Drawdown Current decline from peak	-4.62%	-4.30%	-0.32%
Average Drawdown Average peak-to-trough decline	-22.76%	-10.21%	-12.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.71%	4.32%	+2.39%

Volatility

KCE vs. XLU - Volatility Comparison

SPDR S&P Capital Markets ETF (KCE) has a higher volatility of 5.66% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.21%. This indicates that KCE'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

	KCE	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.66%	5.21%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	15.31%	11.70%	+3.61%
Volatility (1Y) Calculated over the trailing 1-year period	19.97%	14.69%	+5.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.05%	17.30%	+5.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.95%	19.29%	+3.66%

KCE vs. XLU - Expense Ratio Comparison

KCE has a 0.35% expense ratio, which is higher than XLU's 0.08% expense ratio.

Dividends

KCE vs. XLU - Dividend Comparison

KCE's dividend yield for the trailing twelve months is around 1.76%, less than XLU's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KCE SPDR S&P Capital Markets ETF	1.76%	1.63%	1.56%	1.82%	2.42%	1.53%	2.20%	2.32%	2.67%	1.95%	2.30%	2.43%
XLU State Street Utilities Select Sector SPDR ETF	2.65%	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 KCE and XLU in my portfolio?

KCE and XLU have a correlation of 0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KCE or XLU?

KCE has higher volatility (5.66%) compared to XLU (5.21%). In terms of maximum drawdown, KCE dropped -74.00% vs XLU's -51.98%.

Which ETF is better, KCE or XLU?

On 10-year performance, KCE leads with 17.98% vs 9.35% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 5.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KCE or XLU?

Over the 10-year period, KCE has performed better with a 17.98% return vs 9.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KCE or XLU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.35% for KCE.

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

XLU has the higher dividend yield at 2.65%, compared with 1.76% for KCE.

What is the main difference between KCE and XLU?

KCE is categorized as Financials Equities, while XLU is Utilities Equities. KCE tracks S&P Capital Markets Select Industry Index, while XLU tracks Utilities Select Sector Index. Their fees differ too: 0.35% for KCE and 0.08% for XLU.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.96 vs 0.62), 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.