VPU vs. XLU
Compare and contrast key facts about Vanguard Utilities ETF (VPU) and Utilities Select Sector SPDR Fund (XLU).
VPU and XLU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VPU is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Utilities 25/50 Index. It was launched on Jan 26, 2004. XLU is a passively managed fund by State Street that tracks the performance of the Utilities Select Sector Index. It was launched on Dec 16, 1998. Both VPU and XLU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VPU or XLU.
Key characteristics
| VPU | XLU | |
|---|---|---|
| YTD Return | 5.54% | 5.38% |
| 1Y Return | -0.91% | -0.89% |
| 3Y Return (Ann) | 3.21% | 3.44% |
| 5Y Return (Ann) | 5.37% | 5.98% |
| 10Y Return (Ann) | 7.78% | 7.89% |
| Sharpe Ratio | 0.01 | 0.02 |
| Daily Std Dev | 16.96% | 17.01% |
| Max Drawdown | -46.31% | -52.27% |
| Current Drawdown | -10.13% | -10.38% |
Correlation
The correlation between VPU and XLU is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VPU vs. XLU - Performance Comparison
The year-to-date returns for both stocks are quite close, with VPU having a 5.54% return and XLU slightly lower at 5.38%. Both investments have delivered pretty close results over the past 10 years, with VPU having a 7.78% annualized return and XLU not far ahead at 7.89%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VPU vs. XLU - Expense Ratio Comparison
VPU has a 0.10% expense ratio, which is lower than XLU's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VPU vs. XLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) and Utilities Select Sector SPDR Fund (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.
Dividends
VPU vs. XLU - Dividend Comparison
VPU's dividend yield for the trailing twelve months is around 3.30%, which matches XLU's 3.29% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VPU Vanguard Utilities ETF | 3.30% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% | 3.02% | 3.76% |
XLU Utilities Select Sector SPDR Fund | 3.29% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.41% | 3.67% | 3.19% | 3.86% |
Drawdowns
VPU vs. XLU - Drawdown Comparison
The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum XLU drawdown of -52.27%. Use the drawdown chart below to compare losses from any high point for VPU and XLU. For additional features, visit the drawdowns tool.
Volatility
VPU vs. XLU - Volatility Comparison
Vanguard Utilities ETF (VPU) and Utilities Select Sector SPDR Fund (XLU) have volatilities of 4.39% and 4.30%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.