QEFA vs. XLU

Last updated Jun 5, 2026

QEFA (SPDR MSCI EAFE StrategicFactors ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - QEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Factor Mix A-Series (USD), while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, QEFA returned 8.65%/yr vs 9.22%/yr for XLU. At a 0.31 correlation, their price movements are largely independent. QEFA charges 0.30%/yr vs 0.08%/yr for XLU.

Performance

QEFA vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR MSCI EAFE StrategicFactors ETF (QEFA) 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, QEFA achieves a 7.48% return, which is significantly higher than XLU's 3.65% return. Over the past 10 years, QEFA has underperformed XLU with an annualized return of 8.65%, while XLU has yielded a comparatively higher 9.22% annualized return.

QEFA

• 1D: 0.64%
• 1M: 1.05%
• YTD: 7.48%
• 6M: 9.37%
• 1Y: 17.51%
• 3Y*: 15.19%
• 5Y*: 7.76%
• 10Y*: 8.65%

XLU

• 1D: 0.53%
• 1M: -5.24%
• YTD: 3.65%
• 6M: 1.99%
• 1Y: 11.64%
• 3Y*: 13.76%
• 5Y*: 9.36%
• 10Y*: 9.22%

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

QEFA vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QEFA SPDR MSCI EAFE StrategicFactors ETF	7.48%	29.25%	2.27%	17.40%	-14.03%	12.50%	6.76%	21.91%	-10.39%	24.03%
XLU State Street Utilities Select Sector SPDR ETF	3.65%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between QEFA and XLU is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.34
Correlation (All Time) Calculated using the full available price history since Jun 6, 2014	0.31

QEFA vs. XLU - Sectors Allocation Comparison

Sectors	QEFA	XLU
Financial Services	14.3%	-
Healthcare	11.6%	-
Technology	10.1%	-
Industrials	8.7%	-
Consumer Cyclical	5.7%	-
Energy	5.1%	-
Basic Materials	4.9%	-
Consumer Defensive	4.2%	-
Communication Services	3.3%	-
Utilities	2.7%	100.0%
Real Estate	1.8%	-

Return for Risk

QEFA vs. XLU — Risk / Return Rank

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

QEFA

QEFA Risk / Return Rank: 39
QEFA Sharpe Ratio Rank: 39
QEFA Sortino Ratio Rank: 38
QEFA Omega Ratio Rank: 38
QEFA Calmar Ratio Rank: 38
QEFA Martin Ratio Rank: 42

XLU

XLU Risk / Return Rank: 24
XLU Sharpe Ratio Rank: 24
XLU Sortino Ratio Rank: 23
XLU Omega Ratio Rank: 23
XLU Calmar Ratio Rank: 27
XLU Martin Ratio Rank: 23

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.

QEFA vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI EAFE StrategicFactors ETF (QEFA) 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.

	QEFA	XLU	Difference
Sharpe ratio: Return per unit of total volatility	1.38	0.81	+0.57
Sortino ratio: Return per unit of downside risk	1.96	1.18	+0.78
Omega ratio: Gain probability vs. loss probability	1.25	1.15	+0.10
Calmar ratio: Return relative to maximum drawdown	1.84	1.27	+0.56
Martin ratio: Return relative to average drawdown	6.59	2.84	+3.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QEFA vs. XLU - Sharpe Ratio Comparison

The current QEFA Sharpe Ratio is 1.38, which is higher than the XLU Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of QEFA 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.

Sharpe Ratios by Period

	QEFA	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.38	0.81	+0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.54	-0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.54	0.48	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.40	+0.03

Drawdowns

QEFA vs. XLU - Drawdown Comparison

The maximum QEFA drawdown since its inception was -31.71%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for QEFA and XLU.

Drawdown Indicators

	QEFA	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-31.71%	-51.98%	+20.27%
Max Drawdown (1Y) Largest decline over 1 year	-9.58%	-9.18%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-12.23%	-17.26%	+5.03%
Max Drawdown (5Y) Largest decline over 5 years	-28.09%	-25.26%	-2.83%
Max Drawdown (10Y) Largest decline over 10 years	-31.71%	-36.07%	+4.36%
Current Drawdown Current decline from peak	-2.31%	-7.30%	+4.99%
Average Drawdown Average peak-to-trough decline	-6.08%	-10.22%	+4.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	4.11%	-1.45%

Volatility

QEFA vs. XLU - Volatility Comparison

The current volatility for SPDR MSCI EAFE StrategicFactors ETF (QEFA) is 3.78%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.47%. This indicates that QEFA 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.

Volatility by Period

	QEFA	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.78%	5.47%	-1.69%
Volatility (6M) Calculated over the trailing 6-month period	10.26%	11.52%	-1.26%
Volatility (1Y) Calculated over the trailing 1-year period	12.73%	14.57%	-1.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.77%	17.32%	-2.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.03%	19.25%	-3.22%

QEFA vs. XLU - Expense Ratio Comparison

QEFA has a 0.30% expense ratio, which is higher than XLU's 0.08% expense ratio.

Dividends

QEFA vs. XLU - Dividend Comparison

QEFA's dividend yield for the trailing twelve months is around 2.85%, more than XLU's 2.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QEFA SPDR MSCI EAFE StrategicFactors ETF	2.85%	3.13%	3.17%	2.79%	3.02%	2.37%	1.82%	2.95%	3.22%	2.33%	2.01%	2.94%
XLU State Street Utilities Select Sector SPDR ETF	2.71%	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 QEFA and XLU in my portfolio?

QEFA and XLU have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QEFA or XLU?

XLU has higher volatility (5.47%) compared to QEFA (3.78%). In terms of maximum drawdown, QEFA dropped -31.71% vs XLU's -51.98%.

Which ETF is better, QEFA or XLU?

On 10-year performance, XLU leads with 9.22% vs 8.65% for QEFA. On fees, XLU is cheaper at 0.08% per year. On volatility, QEFA has been the lower-risk option at 3.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QEFA or XLU?

Over the 10-year period, XLU has performed better with a 9.22% return vs 8.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QEFA or XLU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.30% for QEFA.

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

QEFA has the higher dividend yield at 2.85%, compared with 2.71% for XLU.

What is the main difference between QEFA and XLU?

QEFA is categorized as Foreign Large Cap Equities, while XLU is Utilities Equities. QEFA tracks MSCI EAFE Factor Mix A-Series (USD), while XLU tracks Utilities Select Sector Index. Their fees differ too: 0.30% for QEFA and 0.08% for XLU.

Which has better risk-adjusted returns?

QEFA currently has the higher Sharpe Ratio (1.38 vs 0.81), 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.