SO vs. XLU

Last updated Jun 23, 2026

SO (The Southern Company) 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, SO returned 10.73%/yr vs 9.26%/yr for XLU. A 0.75 correlation means they provide meaningful diversification when combined.

Performance

SO vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Southern Company (SO) 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, SO achieves a 9.36% return, which is significantly higher than XLU's 6.16% return. Over the past 10 years, SO has outperformed XLU with an annualized return of 10.73%, while XLU has yielded a comparatively lower 9.26% annualized return.

SO

• 1D: 0.37%
• 1M: -0.75%
• YTD: 9.36%
• 6M: 11.24%
• 1Y: 8.52%
• 3Y*: 13.96%
• 5Y*: 12.92%
• 10Y*: 10.73%

XLU

• 1D: 0.55%
• 1M: -0.76%
• YTD: 6.16%
• 6M: 6.71%
• 1Y: 14.60%
• 3Y*: 14.60%
• 5Y*: 10.41%
• 10Y*: 9.26%

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

SO vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SO The Southern Company	9.36%	9.47%	21.72%	2.21%	8.24%	16.34%	0.63%	51.65%	-3.75%	2.42%
XLU State Street Utilities Select Sector SPDR ETF	6.16%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between SO and XLU is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.75

The correlation between SO and XLU shifts across timeframes, from 0.72 (1 year) to 0.83 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

SO vs. XLU — Risk / Return Rank

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

SO

SO Risk / Return Rank: 55
SO Sharpe Ratio Rank: 60
SO Sortino Ratio Rank: 52
SO Omega Ratio Rank: 50
SO Calmar Ratio Rank: 55
SO Martin Ratio Rank: 57

XLU

XLU Risk / Return Rank: 28
XLU Sharpe Ratio Rank: 29
XLU Sortino Ratio Rank: 26
XLU Omega Ratio Rank: 26
XLU Calmar Ratio Rank: 33
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.

SO vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Southern Company (SO) 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.

	SO	XLU	Difference
Sharpe ratio: Return per unit of total volatility	0.53	1.00	-0.47
Sortino ratio: Return per unit of downside risk	0.86	1.41	-0.55
Omega ratio: Gain probability vs. loss probability	1.10	1.18	-0.08
Calmar ratio: Return relative to maximum drawdown	0.57	1.60	-1.03
Martin ratio: Return relative to average drawdown	1.33	3.39	-2.06

SO vs. XLU - Sharpe Ratio Comparison

The current SO Sharpe Ratio is 0.53, which is lower than the XLU Sharpe Ratio of 1.00. The chart below compares the historical Sharpe Ratios of SO 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

SO vs. XLU - Drawdown Comparison

The maximum SO drawdown since its inception was -38.43%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for SO and XLU.

Drawdown Indicators

	SO	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-38.43%	-51.98%	+13.55%
Max Drawdown (1Y) Largest decline over 1 year	-14.99%	-9.18%	-5.81%
Max Drawdown (3Y) Largest decline over 3 years	-14.99%	-17.26%	+2.27%
Max Drawdown (5Y) Largest decline over 5 years	-23.28%	-25.26%	+1.98%
Max Drawdown (10Y) Largest decline over 10 years	-38.43%	-36.07%	-2.36%
Current Drawdown Current decline from peak	-4.53%	-5.05%	+0.52%
Average Drawdown Average peak-to-trough decline	-6.87%	-10.22%	+3.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.42%	4.31%	+2.11%

Volatility

SO vs. XLU - Volatility Comparison

The Southern Company (SO) has a higher volatility of 5.85% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.26%. This indicates that SO'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

	SO	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.85%	5.26%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	13.02%	11.72%	+1.30%
Volatility (1Y) Calculated over the trailing 1-year period	16.25%	14.70%	+1.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.61%	17.31%	+1.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.98%	19.28%	+2.70%

Dividends

SO vs. XLU - Dividend Comparison

SO's dividend yield for the trailing twelve months is around 3.62%, more than XLU's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SO The Southern Company	3.62%	3.37%	3.47%	3.96%	3.78%	3.82%	4.13%	3.86%	5.42%	4.78%	4.52%	4.60%
XLU State Street Utilities Select Sector SPDR ETF	3.30%	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 SO and XLU in my portfolio?

SO and XLU have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SO or XLU?

SO has higher volatility (5.85%) compared to XLU (5.26%). In terms of maximum drawdown, SO dropped -38.43% vs XLU's -51.98%.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (1.00 vs 0.53), 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.