QEMM vs. XLU

Last updated Jun 4, 2026

QEMM (SPDR MSCI Emerging Markets StrategicFactors ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - QEMM is a Emerging Markets Equities fund tracking the MSCI EM 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, QEMM returned 8.96%/yr vs 9.15%/yr for XLU. At a 0.22 correlation, their price movements are largely independent. QEMM charges 0.30%/yr vs 0.08%/yr for XLU.

Performance

QEMM vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) 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, QEMM achieves a 24.39% return, which is significantly higher than XLU's 3.11% return. Both investments have delivered pretty close results over the past 10 years, with QEMM having a 8.96% annualized return and XLU not far ahead at 9.15%.

QEMM

• 1D: -1.21%
• 1M: 6.69%
• YTD: 24.39%
• 6M: 26.00%
• 1Y: 42.27%
• 3Y*: 19.52%
• 5Y*: 7.37%
• 10Y*: 8.96%

XLU

• 1D: -0.43%
• 1M: -5.74%
• YTD: 3.11%
• 6M: 1.25%
• 1Y: 9.11%
• 3Y*: 13.74%
• 5Y*: 9.25%
• 10Y*: 9.15%

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

QEMM vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QEMM SPDR MSCI Emerging Markets StrategicFactors ETF	24.39%	21.92%	4.98%	12.50%	-17.82%	6.34%	9.95%	15.40%	-13.33%	31.50%
XLU State Street Utilities Select Sector SPDR ETF	3.11%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between QEMM and XLU is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (10Y) Calculated over the trailing 10-year period	0.21
Correlation (All Time) Calculated using the full available price history since Jun 9, 2014	0.22

QEMM vs. XLU - Sectors Allocation Comparison

Sectors	QEMM	XLU
Technology	33.8%	-
Financial Services	19.6%	-
Consumer Cyclical	8.3%	-
Industrials	7.2%	-
Communication Services	6.4%	-
Consumer Defensive	6.1%	-
Energy	5.7%	-
Basic Materials	5.6%	-
Healthcare	3.5%	-
Utilities	3.0%	100.0%
Real Estate	0.8%	-

Return for Risk

QEMM vs. XLU — Risk / Return Rank

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

QEMM

QEMM Risk / Return Rank: 78
QEMM Sharpe Ratio Rank: 78
QEMM Sortino Ratio Rank: 75
QEMM Omega Ratio Rank: 79
QEMM Calmar Ratio Rank: 79
QEMM Martin Ratio Rank: 77

XLU

XLU Risk / Return Rank: 19
XLU Sharpe Ratio Rank: 19
XLU Sortino Ratio Rank: 18
XLU Omega Ratio Rank: 18
XLU Calmar Ratio Rank: 22
XLU Martin Ratio Rank: 19

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.

QEMM vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) 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.

	QEMM	XLU	Difference
Sharpe ratio: Return per unit of total volatility	2.54	0.63	+1.92
Sortino ratio: Return per unit of downside risk	3.41	0.94	+2.47
Omega ratio: Gain probability vs. loss probability	1.48	1.12	+0.36
Calmar ratio: Return relative to maximum drawdown	4.08	1.00	+3.09
Martin ratio: Return relative to average drawdown	14.92	2.24	+12.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QEMM vs. XLU - Sharpe Ratio Comparison

The current QEMM Sharpe Ratio is 2.54, which is higher than the XLU Sharpe Ratio of 0.63. The chart below compares the historical Sharpe Ratios of QEMM 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

	QEMM	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.54	0.63	+1.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	0.54	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.48	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.40	-0.06

Drawdowns

QEMM vs. XLU - Drawdown Comparison

The maximum QEMM drawdown since its inception was -36.89%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for QEMM and XLU.

Drawdown Indicators

	QEMM	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-36.89%	-51.98%	+15.09%
Max Drawdown (1Y) Largest decline over 1 year	-10.40%	-9.18%	-1.22%
Max Drawdown (3Y) Largest decline over 3 years	-17.03%	-17.26%	+0.23%
Max Drawdown (5Y) Largest decline over 5 years	-27.49%	-25.26%	-2.23%
Max Drawdown (10Y) Largest decline over 10 years	-36.89%	-36.07%	-0.82%
Current Drawdown Current decline from peak	-1.21%	-7.78%	+6.57%
Average Drawdown Average peak-to-trough decline	-10.64%	-10.22%	-0.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	4.09%	-1.25%

Volatility

QEMM vs. XLU - Volatility Comparison

SPDR MSCI Emerging Markets StrategicFactors ETF (QEMM) has a higher volatility of 7.29% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.41%. This indicates that QEMM'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

	QEMM	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.29%	5.41%	+1.88%
Volatility (6M) Calculated over the trailing 6-month period	14.78%	11.53%	+3.25%
Volatility (1Y) Calculated over the trailing 1-year period	16.69%	14.57%	+2.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.23%	17.32%	-2.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.89%	19.26%	-2.37%

QEMM vs. XLU - Expense Ratio Comparison

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

Dividends

QEMM vs. XLU - Dividend Comparison

QEMM's dividend yield for the trailing twelve months is around 4.34%, more than XLU's 2.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QEMM SPDR MSCI Emerging Markets StrategicFactors ETF	4.34%	4.90%	5.17%	4.88%	4.07%	2.35%	2.48%	3.05%	2.86%	2.11%	2.03%	2.14%
XLU State Street Utilities Select Sector SPDR ETF	2.72%	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 QEMM and XLU in my portfolio?

QEMM and XLU have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QEMM or XLU?

QEMM has higher volatility (7.29%) compared to XLU (5.41%). In terms of maximum drawdown, QEMM dropped -36.89% vs XLU's -51.98%.

Which ETF is better, QEMM or XLU?

On 10-year performance, XLU leads with 9.15% vs 8.96% for QEMM. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QEMM or XLU?

Over the 10-year period, XLU has performed better with a 9.15% return vs 8.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QEMM or XLU?

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

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

QEMM has the higher dividend yield at 4.34%, compared with 2.72% for XLU.

What is the main difference between QEMM and XLU?

QEMM is categorized as Emerging Markets Equities, while XLU is Utilities Equities. QEMM tracks MSCI EM Factor Mix A-Series (USD), while XLU tracks Utilities Select Sector Index. Their fees differ too: 0.30% for QEMM and 0.08% for XLU.

Which has better risk-adjusted returns?

QEMM currently has the higher Sharpe Ratio (2.54 vs 0.63), 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.