SPDN vs. XLU

Last updated Jun 9, 2026

SPDN (Direxion Daily S&P 500 Bear 1x Shares) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - SPDN is a Inverse Equities fund tracking the S&P 500 Index, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past 10 years, SPDN returned -12.43%/yr vs 8.99%/yr for XLU. At a correlation of -0.36, they often move in opposite directions. SPDN charges 0.50%/yr vs 0.08%/yr for XLU.

Performance

SPDN vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily S&P 500 Bear 1x Shares (SPDN) 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, SPDN achieves a -5.89% return, which is significantly lower than XLU's 2.66% return. Over the past 10 years, SPDN has underperformed XLU with an annualized return of -12.43%, while XLU has yielded a comparatively higher 8.99% annualized return.

SPDN

• 1D: -0.11%
• 1M: 0.11%
• YTD: -5.89%
• 6M: -5.63%
• 1Y: -14.82%
• 3Y*: -12.12%
• 5Y*: -8.55%
• 10Y*: -12.43%

XLU

• 1D: -1.87%
• 1M: -2.68%
• YTD: 2.66%
• 6M: 3.35%
• 1Y: 10.26%
• 3Y*: 12.85%
• 5Y*: 9.10%
• 10Y*: 8.99%

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

SPDN vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPDN Direxion Daily S&P 500 Bear 1x Shares	-5.89%	-11.09%	-12.88%	-15.04%	18.63%	-23.72%	-24.56%	-21.94%	5.41%	-17.16%
XLU State Street Utilities Select Sector SPDR ETF	2.66%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between SPDN and XLU is -0.20, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.20
Correlation (3Y) Calculated over the trailing 3-year period	-0.28
Correlation (5Y) Calculated over the trailing 5-year period	-0.37
Correlation (10Y) Calculated over the trailing 10-year period	-0.36
Correlation (All Time) Calculated using the full available price history since Jun 8, 2016	-0.36

The correlation between SPDN and XLU shifts across timeframes, from -0.37 (5 years) to -0.20 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

SPDN vs. XLU — Risk / Return Rank

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

SPDN

SPDN Risk / Return Rank: 1
SPDN Sharpe Ratio Rank: 0
SPDN Sortino Ratio Rank: 1
SPDN Omega Ratio Rank: 1
SPDN Calmar Ratio Rank: 2
SPDN Martin Ratio Rank: 1

XLU

XLU Risk / Return Rank: 22
XLU Sharpe Ratio Rank: 22
XLU Sortino Ratio Rank: 21
XLU Omega Ratio Rank: 21
XLU Calmar Ratio Rank: 26
XLU Martin Ratio Rank: 21

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.

SPDN vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily S&P 500 Bear 1x Shares (SPDN) 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.

	SPDN	XLU	Difference
Sharpe ratio: Return per unit of total volatility	-1.21	0.71	-1.91
Sortino ratio: Return per unit of downside risk	-1.74	1.04	-2.78
Omega ratio: Gain probability vs. loss probability	0.81	1.13	-0.32
Calmar ratio: Return relative to maximum drawdown	-0.84	1.12	-1.96
Martin ratio: Return relative to average drawdown	-1.53	2.47	-4.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPDN vs. XLU - Sharpe Ratio Comparison

The current SPDN Sharpe Ratio is -1.21, which is lower than the XLU Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of SPDN 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

	SPDN	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.21	0.71	-1.91
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.51	0.53	-1.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.69	0.47	-1.16
Sharpe Ratio (All Time) Calculated using the full available price history	-0.69	0.40	-1.08

Drawdowns

SPDN vs. XLU - Drawdown Comparison

The maximum SPDN drawdown since its inception was -75.31%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for SPDN and XLU.

Drawdown Indicators

	SPDN	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-75.31%	-51.98%	-23.33%
Max Drawdown (1Y) Largest decline over 1 year	-17.73%	-9.18%	-8.55%
Max Drawdown (3Y) Largest decline over 3 years	-38.24%	-17.26%	-20.98%
Max Drawdown (5Y) Largest decline over 5 years	-43.85%	-25.26%	-18.59%
Max Drawdown (10Y) Largest decline over 10 years	-75.31%	-36.07%	-39.24%
Current Drawdown Current decline from peak	-74.65%	-8.18%	-66.47%
Average Drawdown Average peak-to-trough decline	-48.57%	-10.22%	-38.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.71%	4.16%	+5.55%

Volatility

SPDN vs. XLU - Volatility Comparison

The current volatility for Direxion Daily S&P 500 Bear 1x Shares (SPDN) is 3.55%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.60%. This indicates that SPDN 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

	SPDN	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.55%	5.60%	-2.05%
Volatility (6M) Calculated over the trailing 6-month period	9.44%	11.70%	-2.26%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	14.64%	-2.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.90%	17.34%	-0.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.05%	19.27%	-1.22%

SPDN vs. XLU - Expense Ratio Comparison

SPDN has a 0.50% expense ratio, which is higher than XLU's 0.08% expense ratio.

Dividends

SPDN vs. XLU - Dividend Comparison

SPDN's dividend yield for the trailing twelve months is around 4.01%, more than XLU's 2.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPDN Direxion Daily S&P 500 Bear 1x Shares	4.01%	4.06%	5.32%	5.84%	0.96%	0.00%	0.10%	1.89%	1.24%	0.42%	0.00%	0.00%
XLU State Street Utilities Select Sector SPDR ETF	2.73%	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 SPDN and XLU in my portfolio?

SPDN and XLU have a correlation of -0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPDN or XLU?

XLU has higher volatility (5.60%) compared to SPDN (3.55%). In terms of maximum drawdown, SPDN dropped -75.31% vs XLU's -51.98%.

Which ETF is better, SPDN or XLU?

On 10-year performance, XLU leads with 8.99% vs -12.43% for SPDN. On fees, XLU is cheaper at 0.08% per year. On volatility, SPDN has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPDN or XLU?

Over the 10-year period, XLU has performed better with a 8.99% return vs -12.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPDN or XLU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.50% for SPDN.

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

SPDN has the higher dividend yield at 4.01%, compared with 2.73% for XLU.

What is the main difference between SPDN and XLU?

SPDN is categorized as Inverse Equities, while XLU is Utilities Equities. SPDN tracks S&P 500 Index, while XLU tracks Utilities Select Sector Index. They also come from different issuers: Direxion and State Street. Their fees differ too: 0.50% for SPDN and 0.08% for XLU.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.70 vs -1.21), 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.