USAI vs. XLE

Last updated Jun 4, 2026

USAI (Pacer American Energy Independence ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both Energy Equities funds - USAI tracks the American Energy Independence Index while XLE tracks the Energy Select Sector Index. Both are passively managed. Over the past 5 years, USAI returned 18.33%/yr vs 20.44%/yr for XLE. A 0.77 correlation means they provide meaningful diversification when combined. USAI charges 0.75%/yr vs 0.08%/yr for XLE.

Performance

USAI vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer American Energy Independence ETF (USAI) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USAI achieves a 22.18% return, which is significantly lower than XLE's 32.17% return.

USAI

• 1D: 0.05%
• 1M: -3.14%
• YTD: 22.18%
• 6M: 21.52%
• 1Y: 19.24%
• 3Y*: 25.97%
• 5Y*: 18.33%
• 10Y*: —

XLE

• 1D: 1.29%
• 1M: -1.14%
• YTD: 32.17%
• 6M: 29.80%
• 1Y: 45.00%
• 3Y*: 17.46%
• 5Y*: 20.44%
• 10Y*: 10.22%

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

USAI vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USAI Pacer American Energy Independence ETF	22.18%	0.69%	43.99%	14.21%	19.82%	37.10%	-15.10%	21.63%	-17.31%	3.69%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	4.68%

Correlation

The correlation between USAI and XLE is 0.67, 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	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Dec 14, 2017	0.77

The correlation between USAI and XLE shifts across timeframes, from 0.67 (1 year) to 0.78 (5 years), reflecting how their relationship changes across market environments.

USAI vs. XLE - Sectors Allocation Comparison

Sectors	USAI	XLE
Energy	97.8%	100.0%
Utilities	2.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

USAI vs. XLE — Risk / Return Rank

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

USAI

USAI Risk / Return Rank: 34
USAI Sharpe Ratio Rank: 33
USAI Sortino Ratio Rank: 32
USAI Omega Ratio Rank: 31
USAI Calmar Ratio Rank: 44
USAI Martin Ratio Rank: 32

XLE

XLE Risk / Return Rank: 63
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 56
XLE Calmar Ratio Rank: 73
XLE Martin Ratio Rank: 60

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.

USAI vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer American Energy Independence ETF (USAI) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	USAI	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.23	2.21	-0.98
Sortino ratio: Return per unit of downside risk	1.72	2.84	-1.12
Omega ratio: Gain probability vs. loss probability	1.21	1.35	-0.14
Calmar ratio: Return relative to maximum drawdown	2.15	3.75	-1.61
Martin ratio: Return relative to average drawdown	4.85	10.92	-6.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USAI vs. XLE - Sharpe Ratio Comparison

The current USAI Sharpe Ratio is 1.23, which is lower than the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of USAI and XLE, 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

	USAI	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	2.21	-0.98
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.90	0.79	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.35	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.31	+0.19

Drawdowns

USAI vs. XLE - Drawdown Comparison

The maximum USAI drawdown since its inception was -65.25%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for USAI and XLE.

Drawdown Indicators

	USAI	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-65.25%	-71.26%	+6.01%
Max Drawdown (1Y) Largest decline over 1 year	-9.01%	-12.05%	+3.04%
Max Drawdown (3Y) Largest decline over 3 years	-18.22%	-20.14%	+1.92%
Max Drawdown (5Y) Largest decline over 5 years	-20.68%	-26.04%	+5.36%
Max Drawdown (10Y) Largest decline over 10 years	—	-66.81%	—
Current Drawdown Current decline from peak	-5.98%	-6.15%	+0.17%
Average Drawdown Average peak-to-trough decline	-9.36%	-17.98%	+8.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.98%	4.14%	-0.16%

Volatility

USAI vs. XLE - Volatility Comparison

The current volatility for Pacer American Energy Independence ETF (USAI) is 6.52%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 8.25%. This indicates that USAI experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USAI	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.52%	8.25%	-1.73%
Volatility (6M) Calculated over the trailing 6-month period	12.29%	16.58%	-4.29%
Volatility (1Y) Calculated over the trailing 1-year period	15.80%	20.53%	-4.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.56%	26.02%	-5.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.31%	29.59%	-2.28%

USAI vs. XLE - Expense Ratio Comparison

USAI has a 0.75% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

USAI vs. XLE - Dividend Comparison

USAI's dividend yield for the trailing twelve months is around 4.19%, more than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USAI Pacer American Energy Independence ETF	4.19%	5.03%	3.62%	4.99%	5.41%	6.15%	7.67%	6.50%	5.56%	0.08%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.54%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both USAI and XLE in my portfolio?

USAI and XLE have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USAI or XLE?

XLE has higher volatility (8.25%) compared to USAI (6.52%). In terms of maximum drawdown, USAI dropped -65.25% vs XLE's -71.26%.

Which ETF is better, USAI or XLE?

On 5-year performance, XLE leads with 20.44% vs 18.33% for USAI. On fees, XLE is cheaper at 0.08% per year. On volatility, USAI has been the lower-risk option at 6.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USAI or XLE?

Over the 5-year period, XLE has performed better with a 20.44% return vs 18.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USAI or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.75% for USAI.

Which ETF pays a higher dividend yield, USAI or XLE?

USAI has the higher dividend yield at 4.19%, compared with 2.54% for XLE.

What is the main difference between USAI and XLE?

USAI tracks American Energy Independence Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: Pacer and State Street. Their fees differ too: 0.75% for USAI and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (2.21 vs 1.23), 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.