T vs. XLU

Last updated Jun 9, 2026

T (AT&T Inc.) 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, T returned 2.86%/yr vs 8.99%/yr for XLU. At a 0.46 correlation, their price movements are largely independent.

Performance

T vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AT&T Inc. (T) 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, T achieves a -7.40% return, which is significantly lower than XLU's 2.66% return. Over the past 10 years, T has underperformed XLU with an annualized return of 2.86%, while XLU has yielded a comparatively higher 8.99% annualized return.

T

• 1D: -1.10%
• 1M: -10.57%
• YTD: -7.40%
• 6M: -7.40%
• 1Y: -16.38%
• 3Y*: 18.39%
• 5Y*: 6.60%
• 10Y*: 2.86%

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)

T vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
T AT&T Inc.	-7.40%	13.97%	44.08%	-2.74%	5.76%	-8.09%	-21.37%	45.55%	-22.25%	-4.01%
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 T and XLU is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Dec 23, 1998	0.46

Over the past year, the correlation between T and XLU has dropped to 0.20 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.

Return for Risk

T vs. XLU — Risk / Return Rank

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

T

T Risk / Return Rank: 11
T Sharpe Ratio Rank: 11
T Sortino Ratio Rank: 12
T Omega Ratio Rank: 13
T Calmar Ratio Rank: 14
T Martin Ratio Rank: 4

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.

T vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AT&T Inc. (T) 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.

	T	XLU	Difference
Sharpe ratio: Return per unit of total volatility	-0.75	0.71	-1.45
Sortino ratio: Return per unit of downside risk	-0.98	1.04	-2.02
Omega ratio: Gain probability vs. loss probability	0.89	1.13	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.75	1.12	-1.87
Martin ratio: Return relative to average drawdown	-1.59	2.47	-4.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

T vs. XLU - Sharpe Ratio Comparison

The current T Sharpe Ratio is -0.75, which is lower than the XLU Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of T 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

	T	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.75	0.71	-1.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.53	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.12	0.47	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.40	-0.02

Drawdowns

T vs. XLU - Drawdown Comparison

The maximum T drawdown since its inception was -64.15%, which is greater than XLU's maximum drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for T and XLU.

Drawdown Indicators

	T	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-64.15%	-51.98%	-12.17%
Max Drawdown (1Y) Largest decline over 1 year	-21.87%	-9.18%	-12.69%
Max Drawdown (3Y) Largest decline over 3 years	-21.87%	-17.26%	-4.61%
Max Drawdown (5Y) Largest decline over 5 years	-32.01%	-25.26%	-6.75%
Max Drawdown (10Y) Largest decline over 10 years	-42.35%	-36.07%	-6.28%
Current Drawdown Current decline from peak	-21.87%	-8.18%	-13.69%
Average Drawdown Average peak-to-trough decline	-15.72%	-10.22%	-5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.34%	4.16%	+6.18%

Volatility

T vs. XLU - Volatility Comparison

AT&T Inc. (T) has a higher volatility of 7.50% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.60%. This indicates that T'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

	T	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.50%	5.60%	+1.90%
Volatility (6M) Calculated over the trailing 6-month period	17.57%	11.70%	+5.87%
Volatility (1Y) Calculated over the trailing 1-year period	21.98%	14.64%	+7.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.97%	17.34%	+6.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.71%	19.27%	+4.44%

Dividends

T vs. XLU - Dividend Comparison

T's dividend yield for the trailing twelve months is around 4.93%, more than XLU's 2.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
T AT&T Inc.	4.93%	4.47%	4.87%	6.62%	6.66%	8.46%	7.23%	5.22%	7.01%	5.04%	4.51%	5.46%
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 T and XLU in my portfolio?

T 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, T or XLU?

T has higher volatility (7.50%) compared to XLU (5.60%). In terms of maximum drawdown, T dropped -64.15% vs XLU's -51.98%.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.70 vs -0.75), 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.