SDY vs. XLU

Last updated Jun 4, 2026

SDY (SPDR S&P Dividend ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - SDY is a Mid Cap Value Equities fund tracking the S&P High Yield Dividend Aristocrats Index, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, SDY returned 9.29%/yr vs 9.15%/yr for XLU. A 0.59 correlation means they provide meaningful diversification when combined. SDY charges 0.35%/yr vs 0.08%/yr for XLU.

Performance

SDY vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Dividend ETF (SDY) 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, SDY achieves a 7.49% return, which is significantly higher than XLU's 3.11% return. Both investments have delivered pretty close results over the past 10 years, with SDY having a 9.29% annualized return and XLU not far behind at 9.15%.

SDY

• 1D: -0.15%
• 1M: 0.81%
• YTD: 7.49%
• 6M: 7.45%
• 1Y: 12.80%
• 3Y*: 9.83%
• 5Y*: 5.97%
• 10Y*: 9.29%

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)

SDY vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SDY SPDR S&P Dividend ETF	7.49%	8.18%	8.45%	2.61%	-0.54%	25.32%	1.71%	23.29%	-2.74%	15.82%
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 SDY and XLU is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Nov 16, 2005	0.59

The correlation between SDY and XLU shifts across timeframes, from 0.49 (1 year) to 0.62 (5 years), reflecting how their relationship changes across market environments.

SDY vs. XLU - Sectors Allocation Comparison

Sectors	SDY	XLU
Industrials	17.5%	-
Consumer Defensive	17.1%	-
Utilities	14.8%	100.0%
Financial Services	11.5%	-
Technology	8.7%	-
Basic Materials	6.4%	-
Healthcare	6.2%	-
Consumer Cyclical	5.2%	-
Real Estate	4.6%	-
Energy	4.6%	-
Communication Services	3.5%	-

Return for Risk

SDY vs. XLU — Risk / Return Rank

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

SDY

SDY Risk / Return Rank: 33
SDY Sharpe Ratio Rank: 33
SDY Sortino Ratio Rank: 36
SDY Omega Ratio Rank: 31
SDY Calmar Ratio Rank: 33
SDY Martin Ratio Rank: 31

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.

SDY vs. XLU - Risk-Adjusted Trends Comparison

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

	SDY	XLU	Difference
Sharpe ratio: Return per unit of total volatility	1.25	0.63	+0.62
Sortino ratio: Return per unit of downside risk	1.92	0.94	+0.98
Omega ratio: Gain probability vs. loss probability	1.22	1.12	+0.10
Calmar ratio: Return relative to maximum drawdown	1.68	1.00	+0.68
Martin ratio: Return relative to average drawdown	4.60	2.24	+2.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDY vs. XLU - Sharpe Ratio Comparison

The current SDY Sharpe Ratio is 1.25, which is higher than the XLU Sharpe Ratio of 0.63. The chart below compares the historical Sharpe Ratios of SDY 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

	SDY	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.25	0.63	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.43	0.54	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.48	+0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.40	+0.07

Drawdowns

SDY vs. XLU - Drawdown Comparison

The maximum SDY drawdown since its inception was -54.75%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for SDY and XLU.

Drawdown Indicators

	SDY	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-54.75%	-51.98%	-2.77%
Max Drawdown (1Y) Largest decline over 1 year	-7.67%	-9.18%	+1.51%
Max Drawdown (3Y) Largest decline over 3 years	-14.39%	-17.26%	+2.87%
Max Drawdown (5Y) Largest decline over 5 years	-15.21%	-25.26%	+10.05%
Max Drawdown (10Y) Largest decline over 10 years	-36.70%	-36.07%	-0.63%
Current Drawdown Current decline from peak	-4.07%	-7.78%	+3.71%
Average Drawdown Average peak-to-trough decline	-6.21%	-10.22%	+4.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	4.09%	-1.30%

Volatility

SDY vs. XLU - Volatility Comparison

The current volatility for SPDR S&P Dividend ETF (SDY) is 2.47%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.41%. This indicates that SDY 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

	SDY	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.47%	5.41%	-2.94%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	11.53%	-4.10%
Volatility (1Y) Calculated over the trailing 1-year period	10.33%	14.57%	-4.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.03%	17.32%	-3.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.08%	19.26%	-2.18%

SDY vs. XLU - Expense Ratio Comparison

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

Dividends

SDY vs. XLU - Dividend Comparison

SDY's dividend yield for the trailing twelve months is around 2.48%, less than XLU's 2.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SDY SPDR S&P Dividend ETF	2.48%	2.61%	2.56%	2.64%	2.55%	2.63%	2.85%	2.45%	2.73%	4.69%	3.30%	6.20%
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 SDY and XLU in my portfolio?

SDY and XLU have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDY or XLU?

XLU has higher volatility (5.41%) compared to SDY (2.47%). In terms of maximum drawdown, SDY dropped -54.75% vs XLU's -51.98%.

Which ETF is better, SDY or XLU?

On 10-year performance, SDY leads with 9.29% vs 9.15% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, SDY has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SDY or XLU?

Over the 10-year period, SDY has performed better with a 9.29% return vs 9.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDY or XLU?

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

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

XLU has the higher dividend yield at 2.72%, compared with 2.48% for SDY.

What is the main difference between SDY and XLU?

SDY is categorized as Mid Cap Value Equities, while XLU is Utilities Equities. SDY tracks S&P High Yield Dividend Aristocrats Index, while XLU tracks Utilities Select Sector Index. Their fees differ too: 0.35% for SDY and 0.08% for XLU.

Which has better risk-adjusted returns?

SDY currently has the higher Sharpe Ratio (1.25 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.