USMC vs. XLE

Last updated Jun 3, 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 15.68%/yr vs 20.29%/yr for XLE. At a 0.36 correlation, their price movements are largely independent. 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 9.11% return, which is significantly lower than XLE's 30.48% return.

USMC

• 1D: 0.11%
• 1M: 5.62%
• YTD: 9.11%
• 6M: 8.87%
• 1Y: 24.67%
• 3Y*: 22.12%
• 5Y*: 15.68%
• 10Y*: —

XLE

• 1D: 1.15%
• 1M: -1.51%
• YTD: 30.48%
• 6M: 30.54%
• 1Y: 44.84%
• 3Y*: 16.95%
• 5Y*: 20.29%
• 10Y*: 10.08%

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

USMC vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USMC Principal U.S. Mega-Cap ETF	9.11%	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	30.48%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	6.69%

Correlation

The correlation between USMC and XLE is -0.13, 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	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.25
Correlation (All Time) Calculated using the full available price history since Oct 13, 2017	0.36

The correlation between USMC and XLE shifts across timeframes, from -0.13 (1 year) to 0.36 (all time), reflecting how their relationship changes across market environments.

USMC vs. XLE - Sectors Allocation Comparison

Sectors	USMC	XLE
Technology	29.1%	-
Financial Services	19.6%	-
Communication Services	14.7%	-
Consumer Defensive	9.6%	-
Consumer Cyclical	8.4%	-
Healthcare	8.1%	-
Industrials	5.6%	-
Energy	4.8%	100.0%
Basic Materials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

USMC vs. XLE — Risk / Return Rank

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

USMC

USMC Risk / Return Rank: 57
USMC Sharpe Ratio Rank: 62
USMC Sortino Ratio Rank: 63
USMC Omega Ratio Rank: 59
USMC Calmar Ratio Rank: 49
USMC Martin Ratio Rank: 54

XLE

XLE Risk / Return Rank: 64
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 57
XLE Calmar Ratio Rank: 76
XLE Martin Ratio Rank: 63

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.

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.

	USMC	XLE	Difference
Sharpe ratio Return per unit of total volatility	2.10	2.20	-0.10
Sortino ratio Return per unit of downside risk	2.95	2.83	+0.12
Omega ratio Gain probability vs. loss probability	1.37	1.35	+0.01
Calmar ratio Return relative to maximum drawdown	2.45	3.88	-1.43
Martin ratio Return relative to average drawdown	9.38	11.35	-1.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USMC vs. XLE - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 2.10, which is comparable to the XLE Sharpe Ratio of 2.20. 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.

Sharpe Ratios by Period

	USMC	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.10	2.20	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.96	0.78	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.34	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.31	+0.53

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%	-12.05%	+1.75%
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	0.00%	-7.35%	+7.35%
Average Drawdown Average peak-to-trough decline	-4.41%	-17.98%	+13.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.69%	4.12%	-1.43%

Volatility

USMC vs. XLE - Volatility Comparison

The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 2.49%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 8.19%. 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	2.49%	8.19%	-5.70%
Volatility (6M) Calculated over the trailing 6-month period	8.69%	16.56%	-7.87%
Volatility (1Y) Calculated over the trailing 1-year period	11.81%	20.53%	-8.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.36%	26.01%	-9.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.25%	29.59%	-11.34%

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 0.74%, less than XLE's 2.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USMC Principal U.S. Mega-Cap ETF	0.74%	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	2.57%	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 -0.13, 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 (8.19%) compared to USMC (2.49%). 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 20.29% vs 15.68% for USMC. On fees, XLE is cheaper at 0.08% per year. On volatility, USMC has been the lower-risk option at 2.49%. 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 20.29% return vs 15.68%. 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 2.57%, compared with 0.74% 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 (2.20 vs 2.10), 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.