VPU vs. UTG

Last updated Jun 24, 2026

VPU (Vanguard Utilities ETF) is Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index, while UTG (Reaves Utility Income Trust) is a stock. Over the past 10 years, VPU returned 9.25%/yr vs 10.67%/yr for UTG. A 0.59 correlation means they provide meaningful diversification when combined.

Performance

VPU vs. UTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Utilities ETF (VPU) and Reaves Utility Income Trust (UTG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VPU achieves a 6.78% return, which is significantly lower than UTG's 18.90% return. Over the past 10 years, VPU has underperformed UTG with an annualized return of 9.25%, while UTG has yielded a comparatively higher 10.67% annualized return.

VPU

• 1D: 0.75%
• 1M: -0.09%
• YTD: 6.78%
• 6M: 6.90%
• 1Y: 13.99%
• 3Y*: 14.85%
• 5Y*: 10.36%
• 10Y*: 9.25%

UTG

• 1D: -0.23%
• 1M: 0.27%
• YTD: 18.90%
• 6M: 19.91%
• 1Y: 27.50%
• 3Y*: 25.02%
• 5Y*: 12.24%
• 10Y*: 10.67%

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

VPU vs. UTG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPU Vanguard Utilities ETF	6.78%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%
UTG Reaves Utility Income Trust	18.90%	23.24%	28.10%	2.84%	-13.38%	14.26%	-5.25%	33.65%	1.84%	6.74%

Correlation

The correlation between VPU and UTG is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Feb 25, 2004	0.59

The correlation between VPU and UTG shifts across timeframes, from 0.59 (all time) to 0.72 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VPU vs. UTG — Risk / Return Rank

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

VPU

VPU Risk / Return Rank: 28
VPU Sharpe Ratio Rank: 28
VPU Sortino Ratio Rank: 26
VPU Omega Ratio Rank: 26
VPU Calmar Ratio Rank: 33
VPU Martin Ratio Rank: 26

UTG

UTG Risk / Return Rank: 79
UTG Sharpe Ratio Rank: 84
UTG Sortino Ratio Rank: 78
UTG Omega Ratio Rank: 78
UTG Calmar Ratio Rank: 79
UTG Martin Ratio Rank: 77

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.

VPU vs. UTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) and Reaves Utility Income Trust (UTG). 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.

	VPU	UTG	Difference
Sharpe ratio: Return per unit of total volatility	0.98	1.61	-0.63
Sortino ratio: Return per unit of downside risk	1.38	2.09	-0.71
Omega ratio: Gain probability vs. loss probability	1.17	1.27	-0.10
Calmar ratio: Return relative to maximum drawdown	1.58	2.38	-0.81
Martin ratio: Return relative to average drawdown	3.36	5.17	-1.81

VPU vs. UTG - Sharpe Ratio Comparison

The current VPU Sharpe Ratio is 0.98, which is lower than the UTG Sharpe Ratio of 1.61. The chart below compares the historical Sharpe Ratios of VPU and UTG, 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

VPU vs. UTG - Drawdown Comparison

The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum UTG drawdown of -67.77%. Use the drawdown chart below to compare losses from any high point for VPU and UTG.

Drawdown Indicators

	VPU	UTG	Difference
Max Drawdown Largest peak-to-trough decline	-46.31%	-67.77%	+21.46%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-11.59%	+2.69%
Max Drawdown (3Y) Largest decline over 3 years	-17.34%	-15.03%	-2.31%
Max Drawdown (5Y) Largest decline over 5 years	-25.15%	-26.54%	+1.39%
Max Drawdown (10Y) Largest decline over 10 years	-36.42%	-47.91%	+11.49%
Current Drawdown Current decline from peak	-4.02%	-1.82%	-2.20%
Average Drawdown Average peak-to-trough decline	-7.78%	-8.73%	+0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	5.33%	-1.16%

Volatility

VPU vs. UTG - Volatility Comparison

The current volatility for Vanguard Utilities ETF (VPU) is 5.15%, while Reaves Utility Income Trust (UTG) has a volatility of 5.85%. This indicates that VPU experiences smaller price fluctuations and is considered to be less risky than UTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPU	UTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.15%	5.85%	-0.70%
Volatility (6M) Calculated over the trailing 6-month period	11.52%	13.30%	-1.78%
Volatility (1Y) Calculated over the trailing 1-year period	14.44%	17.29%	-2.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.03%	16.95%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.15%	21.64%	-2.49%

Dividends

VPU vs. UTG - Dividend Comparison

VPU's dividend yield for the trailing twelve months is around 2.59%, less than UTG's 5.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UTG Reaves Utility Income Trust	5.65%	6.42%	7.19%	8.53%	8.07%	6.35%	6.59%	5.69%	6.86%	6.21%	9.02%	6.86%
VPU Vanguard Utilities ETF	2.59%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%

Frequently Asked Questions

Can I hold both VPU and UTG in my portfolio?

VPU and UTG have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPU or UTG?

UTG has higher volatility (5.85%) compared to VPU (5.15%). In terms of maximum drawdown, VPU dropped -46.31% vs UTG's -67.77%.

Which has better risk-adjusted returns?

UTG currently has the higher Sharpe Ratio (1.61 vs 0.98), 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.