VWELX vs. XLU

Last updated Jun 9, 2026

VWELX (Vanguard Wellington Fund Investor Shares) and XLU (State Street Utilities Select Sector SPDR ETF) are both funds - VWELX is a Diversified Portfolio fund actively managed by Vanguard, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. VWELX is actively managed, while XLU is passively managed. Over the past 10 years, VWELX returned 9.87%/yr vs 8.99%/yr for XLU. A 0.54 correlation means they provide meaningful diversification when combined. VWELX charges 0.24%/yr vs 0.08%/yr for XLU.

Performance

VWELX vs. XLU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Wellington Fund Investor Shares (VWELX) and State Street Utilities Select Sector SPDR ETF (XLU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VWELX achieves a 4.55% return, which is significantly higher than XLU's 2.66% return. Over the past 10 years, VWELX has outperformed XLU with an annualized return of 9.87%, while XLU has yielded a comparatively lower 8.99% annualized return.

VWELX

• 1D: -2.02%
• 1M: -0.51%
• YTD: 4.55%
• 6M: 4.96%
• 1Y: 17.46%
• 3Y*: 14.67%
• 5Y*: 8.31%
• 10Y*: 9.87%

XLU

• 1D: -1.87%
• 1M: -2.68%
• YTD: 2.66%
• 6M: 3.35%
• 1Y: 10.26%
• 3Y*: 12.85%
• 5Y*: 9.10%
• 10Y*: 8.99%

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

VWELX vs. XLU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VWELX Vanguard Wellington Fund Investor Shares	4.55%	16.54%	14.73%	14.29%	-14.36%	18.99%	10.57%	22.51%	-3.43%	13.98%
XLU State Street Utilities Select Sector SPDR ETF	2.66%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%

Correlation

The correlation between VWELX and XLU is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.54

Over the past year, the correlation between VWELX and XLU has dropped to 0.24 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

VWELX vs. XLU - Sectors Allocation Comparison

Sectors	VWELX	XLU
Technology	31.8%	-
Communication Services	12.3%	-
Consumer Cyclical	10.9%	-
Financial Services	10.6%	-
Healthcare	9.8%	-
Industrials	8.5%	-
Consumer Defensive	4.4%	-
Energy	4.4%	-
Real Estate	2.6%	-
Utilities	2.5%	100.0%
Basic Materials	2.1%	-

Return for Risk

VWELX vs. XLU — Risk / Return Rank

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

VWELX

VWELX Risk / Return Rank: 55
VWELX Sharpe Ratio Rank: 54
VWELX Sortino Ratio Rank: 50
VWELX Omega Ratio Rank: 54
VWELX Calmar Ratio Rank: 52
VWELX Martin Ratio Rank: 65

XLU

XLU Risk / Return Rank: 22
XLU Sharpe Ratio Rank: 22
XLU Sortino Ratio Rank: 21
XLU Omega Ratio Rank: 21
XLU Calmar Ratio Rank: 26
XLU Martin Ratio Rank: 21

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.

VWELX vs. XLU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Wellington Fund Investor Shares (VWELX) and State Street Utilities Select Sector SPDR ETF (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.

	VWELX	XLU	Difference
Sharpe ratio: Return per unit of total volatility	2.09	0.71	+1.38
Sortino ratio: Return per unit of downside risk	2.89	1.04	+1.85
Omega ratio: Gain probability vs. loss probability	1.39	1.13	+0.26
Calmar ratio: Return relative to maximum drawdown	2.67	1.12	+1.55
Martin ratio: Return relative to average drawdown	12.31	2.47	+9.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VWELX vs. XLU - Sharpe Ratio Comparison

The current VWELX Sharpe Ratio is 2.09, which is higher than the XLU Sharpe Ratio of 0.71. The chart below compares the historical Sharpe Ratios of VWELX and XLU, 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

	VWELX	XLU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.09	0.71	+1.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.53	+0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	0.47	+0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.84	0.40	+0.44

Drawdowns

VWELX vs. XLU - Drawdown Comparison

The maximum VWELX drawdown since its inception was -36.12%, smaller than the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for VWELX and XLU.

Drawdown Indicators

	VWELX	XLU	Difference
Max Drawdown Largest peak-to-trough decline	-36.12%	-51.98%	+15.86%
Max Drawdown (1Y) Largest decline over 1 year	-6.78%	-9.18%	+2.40%
Max Drawdown (3Y) Largest decline over 3 years	-11.98%	-17.26%	+5.28%
Max Drawdown (5Y) Largest decline over 5 years	-20.88%	-25.26%	+4.38%
Max Drawdown (10Y) Largest decline over 10 years	-25.33%	-36.07%	+10.74%
Current Drawdown Current decline from peak	-2.39%	-8.18%	+5.79%
Average Drawdown Average peak-to-trough decline	-3.92%	-10.22%	+6.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.47%	4.16%	-2.69%

Volatility

VWELX vs. XLU - Volatility Comparison

The current volatility for Vanguard Wellington Fund Investor Shares (VWELX) is 3.12%, while State Street Utilities Select Sector SPDR ETF (XLU) has a volatility of 5.60%. This indicates that VWELX experiences smaller price fluctuations and is considered to be less risky than XLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VWELX	XLU	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.12%	5.60%	-2.48%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	11.70%	-4.70%
Volatility (1Y) Calculated over the trailing 1-year period	8.67%	14.64%	-5.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.17%	17.34%	-6.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.55%	19.27%	-7.72%

VWELX vs. XLU - Expense Ratio Comparison

VWELX has a 0.24% expense ratio, which is higher than XLU'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

VWELX vs. XLU - Dividend Comparison

VWELX's dividend yield for the trailing twelve months is around 11.02%, more than XLU's 2.73% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VWELX Vanguard Wellington Fund Investor Shares	11.02%	11.46%	10.76%	6.01%	8.19%	8.64%	7.77%	4.67%	9.49%	5.82%	4.44%	7.03%
XLU State Street Utilities Select Sector SPDR ETF	2.73%	2.71%	2.96%	3.39%	2.92%	2.79%	3.14%	2.95%	3.33%	3.33%	3.41%	3.67%

Frequently Asked Questions

Can I hold both VWELX and XLU in my portfolio?

VWELX and XLU have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VWELX or XLU?

XLU has higher volatility (5.60%) compared to VWELX (3.12%). In terms of maximum drawdown, VWELX dropped -36.12% vs XLU's -51.98%.

Which has better risk-adjusted returns?

VWELX currently has the higher Sharpe Ratio (2.09 vs 0.70), 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.