NGG vs. XLU

Last updated Jun 24, 2026

NGG (National Grid plc) 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, NGG returned 7.70%/yr vs 9.35%/yr for XLU. At a 0.44 correlation, their price movements are largely independent.

Performance

NGG vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in National Grid plc (NGG) 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, NGG achieves a 8.23% return, which is significantly higher than XLU's 6.99% return. Over the past 10 years, NGG has underperformed XLU with an annualized return of 7.70%, while XLU has yielded a comparatively higher 9.35% annualized return.

NGG

• 1D: 0.74%
• 1M: -3.34%
• YTD: 8.23%
• 6M: 8.38%
• 1Y: 15.79%
• 3Y*: 14.73%
• 5Y*: 11.32%
• 10Y*: 7.70%

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)

NGG vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NGG National Grid plc	8.23%	35.88%	-1.26%	18.82%	-12.68%	29.02%	-0.75%	38.53%	-13.76%	4.94%
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 NGG and XLU is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jan 2, 2001	0.44

The correlation between NGG and XLU shifts across timeframes, from 0.44 (all time) to 0.56 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

NGG vs. XLU — Risk / Return Rank

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

NGG

NGG Risk / Return Rank: 63
NGG Sharpe Ratio Rank: 66
NGG Sortino Ratio Rank: 57
NGG Omega Ratio Rank: 58
NGG Calmar Ratio Rank: 65
NGG Martin Ratio Rank: 67

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.

NGG vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for National Grid plc (NGG) 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.

	NGG	XLU	Difference
Sharpe ratio: Return per unit of total volatility	0.74	0.96	-0.22
Sortino ratio: Return per unit of downside risk	1.06	1.37	-0.30
Omega ratio: Gain probability vs. loss probability	1.15	1.17	-0.02
Calmar ratio: Return relative to maximum drawdown	1.12	1.54	-0.42
Martin ratio: Return relative to average drawdown	2.88	3.26	-0.38

NGG vs. XLU - Sharpe Ratio Comparison

The current NGG Sharpe Ratio is 0.74, which is comparable to the XLU Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of NGG 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

NGG vs. XLU - Drawdown Comparison

The maximum NGG drawdown since its inception was -54.85%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for NGG and XLU.

Drawdown Indicators

	NGG	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-54.85%	-51.98%	-2.87%
Max Drawdown (1Y) Largest decline over 1 year	-14.15%	-9.18%	-4.97%
Max Drawdown (3Y) Largest decline over 3 years	-20.76%	-17.26%	-3.50%
Max Drawdown (5Y) Largest decline over 5 years	-39.20%	-25.26%	-13.94%
Max Drawdown (10Y) Largest decline over 10 years	-39.20%	-36.07%	-3.13%
Current Drawdown Current decline from peak	-10.88%	-4.30%	-6.58%
Average Drawdown Average peak-to-trough decline	-13.40%	-10.21%	-3.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.49%	4.32%	+1.17%

Volatility

NGG vs. XLU - Volatility Comparison

National Grid plc (NGG) has a higher volatility of 6.12% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.21%. This indicates that NGG'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

	NGG	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.12%	5.21%	+0.91%
Volatility (6M) Calculated over the trailing 6-month period	17.53%	11.70%	+5.83%
Volatility (1Y) Calculated over the trailing 1-year period	21.72%	14.69%	+7.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.14%	17.30%	+4.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.01%	19.29%	+3.72%

Dividends

NGG vs. XLU - Dividend Comparison

NGG's dividend yield for the trailing twelve months is around 3.97%, more than XLU's 2.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NGG National Grid plc	3.97%	4.03%	11.81%	5.20%	5.18%	4.75%	5.32%	4.94%	6.51%	14.95%	5.07%	4.73%
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 NGG and XLU in my portfolio?

NGG and XLU have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NGG or XLU?

NGG has higher volatility (6.12%) compared to XLU (5.21%). In terms of maximum drawdown, NGG dropped -54.85% vs XLU's -51.98%.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.96 vs 0.74), 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.