USMC vs. XLE

Last updated Aug 2, 2026

USMC (Principal U.S. Mega-Cap ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 5 years, USMC returned 14.11%/yr vs 23.67%/yr for XLE. Their 0.34 correlation means their historical movements had little consistent relationship. USMC charges 0.12%/yr vs 0.08%/yr for XLE.

Performance

USMC vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal U.S. Mega-Cap ETF (USMC) 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, USMC achieves a 8.72% return, which is significantly lower than XLE's 35.03% return.

USMC

• 1D: 0.44%
• 1M: 0.13%
• 6M: 9.88%
• YTD: 8.72%
• 1Y: 20.36%
• 3Y*: 19.26%
• 5Y*: 14.11%
• 10Y*: —
• ALL TIME*: 14.93%

XLE

• 1D: 1.00%
• 1M: 11.89%
• 6M: 18.26%
• YTD: 35.03%
• 1Y: 43.49%
• 3Y*: 14.62%
• 5Y*: 23.67%
• 10Y*: 10.52%
• ALL TIME*: 8.87%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
USMC Principal U.S. Mega-Cap ETF	$7.10M	$6.59M	$6.39M
XLE State Street Energy Select Sector SPDR ETF	$1.70B	$1.73B	$1.97B

USMC vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMC Principal U.S. Mega-Cap ETF	8.72%	14.99%	29.82%	31.57%	-17.17%	26.30%	16.05%	27.37%	-2.30%	5.48%
XLE State Street Energy Select Sector SPDR ETF	35.03%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	6.30%

Correlation

The correlation between USMC and XLE is -0.16, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.16
Correlation (3Y) Balances recent behavior with more history.	0.09
Correlation (5Y) Shows whether the relationship held over a longer period.	0.23
Correlation (All Time) Calculated using the full available price history since Oct 12, 2017	0.34

The correlation between USMC and XLE shifts across timeframes, from -0.16 (1 year) to 0.34 (all time), reflecting how their relationship changes across market environments.

USMC vs. XLE - Sectors Allocation Comparison

Sectors	USMC	XLE
Technology	32.1%	-
Financial Services	19.5%	-
Communication Services	12.3%	-
Healthcare	9.1%	-
Consumer Defensive	8.5%	-
Consumer Cyclical	8.0%	-
Industrials	6.6%	-
Energy	4.0%	100.0%
Basic Materials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

USMC vs. XLE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

USMC

USMC Risk / Return Rank: 59
USMC Sharpe Ratio Rank: 64
USMC Sortino Ratio Rank: 64
USMC Omega Ratio Rank: 61
USMC Calmar Ratio Rank: 51
USMC Martin Ratio Rank: 57

XLE

XLE Risk / Return Rank: 76
XLE Sharpe Ratio Rank: 84
XLE Sortino Ratio Rank: 79
XLE Omega Ratio Rank: 76
XLE Calmar Ratio Rank: 78
XLE Martin Ratio Rank: 62

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

USMC vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) 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.

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.

	USMC	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.49	1.95	-0.46
Sortino ratio: Return per unit of downside risk	2.12	2.53	-0.41
Omega ratio: Gain probability vs. loss probability	1.26	1.32	-0.06
Calmar ratio: Return relative to maximum drawdown	1.82	2.74	-0.92
Martin ratio: Return relative to average drawdown	6.78	7.32	-0.54

USMC vs. XLE - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 1.49, which is comparable to the XLE Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of USMC 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.

Drawdowns

USMC vs. XLE - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for USMC and XLE.

Drawdown Indicators

	USMC	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-71.26%	+41.29%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-14.98%	+4.68%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-20.14%	+1.02%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	-26.04%	+1.95%
Max Drawdown (10Y) Largest decline over 10 years	—	-66.81%	—
Current Drawdown Current decline from peak	-1.03%	-4.13%	+3.10%
Average Drawdown Average peak-to-trough decline	-4.35%	-17.93%	+13.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	5.62%	-2.87%

Volatility

USMC vs. XLE - Volatility Comparison

The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 3.47%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 5.85%. This indicates that USMC 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

	USMC	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.47%	5.85%	-2.38%
Volatility (6M) Calculated over the trailing 6-month period	9.64%	16.71%	-7.07%
Volatility (1Y) Calculated over the trailing 1-year period	12.60%	21.05%	-8.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	25.77%	-9.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.18%	29.57%	-11.39%

USMC vs. XLE - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is higher than XLE's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

USMC vs. XLE - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.76%, less than XLE's 2.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USMC Principal U.S. Mega-Cap ETF	0.76%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.55%	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 USMC and XLE in my portfolio?

USMC and XLE have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMC or XLE?

XLE has higher volatility (5.85%) compared to USMC (3.47%). In terms of maximum drawdown, USMC dropped -29.97% vs XLE's -71.26%.

Which ETF is better, USMC or XLE?

On 5-year performance, XLE leads with 23.67% vs 14.11% for USMC. On fees, XLE is cheaper at 0.08% per year. On volatility, USMC has been the lower-risk option at 3.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMC or XLE?

Over the 5-year period, XLE has performed better with a 23.67% return vs 14.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.12% for USMC.

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

XLE has the higher dividend yield at 2.55%, compared with 0.76% for USMC.

What is the main difference between USMC and XLE?

USMC is categorized as Large Cap Growth Equities, while XLE is Energy Equities. USMC tracks Nasdaq US Mega Cap Select Leaders Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: Principal and State Street. Their fees differ too: 0.12% for USMC and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.95 vs 1.49), 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.