VZ vs. XLU
VZ (Verizon Communications Inc.) is a stock, while XLU (State Street Utilities Select Sector SPDR ETF) is Utilities Equities fund tracking the Utilities Select Sector Index. Over the past 10 years, VZ returned 4.44%/yr vs 9.20%/yr for XLU. At a 0.45 correlation, their price movements are largely independent.
Performance
VZ vs. XLU - Performance Comparison
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Returns By Period
In the year-to-date period, VZ achieves a 21.97% return, which is significantly higher than XLU's 5.04% return. Over the past 10 years, VZ has underperformed XLU with an annualized return of 4.44%, while XLU has yielded a comparatively higher 9.20% annualized return.
VZ
- 1D
- 2.49%
- 1M
- 1.91%
- YTD
- 21.97%
- 6M
- 21.50%
- 1Y
- 18.98%
- 3Y*
- 18.39%
- 5Y*
- 2.74%
- 10Y*
- 4.44%
XLU
- 1D
- 1.09%
- 1M
- -0.31%
- YTD
- 5.04%
- 6M
- 5.48%
- 1Y
- 11.85%
- 3Y*
- 13.79%
- 5Y*
- 9.41%
- 10Y*
- 9.20%
VZ vs. XLU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 21.97% | 8.86% | 13.14% | 2.71% | -20.02% | -7.55% | -0.13% | 13.83% | 11.26% | 3.97% |
XLU State Street Utilities Select Sector SPDR ETF | 5.04% | 16.03% | 23.31% | -7.18% | 1.44% | 17.70% | 0.51% | 25.93% | 3.94% | 12.05% |
Correlation
The correlation between VZ and XLU is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Jul 3, 2000 | 0.45 |
The correlation between VZ and XLU shifts across timeframes, from 0.28 (1 year) to 0.45 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VZ vs. XLU — Risk / Return Rank
VZ
XLU
VZ vs. XLU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Verizon Communications Inc. (VZ) 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.
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.
| VZ | XLU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.15 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 1.30 | +0.14 |
| Martin ratioReturn relative to average drawdown | 3.06 | 2.80 | +0.26 |
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Drawdowns
VZ vs. XLU - Drawdown Comparison
The maximum VZ drawdown since its inception was -50.66%, roughly equal to the maximum XLU drawdown of -51.98%. Use the drawdown chart below to compare losses from any high point for VZ and XLU.
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Drawdown Indicators
| VZ | XLU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.66% | -51.98% | +1.32% |
Max Drawdown (1Y)Largest decline over 1 year | -13.32% | -9.18% | -4.14% |
Max Drawdown (3Y)Largest decline over 3 years | -14.93% | -17.26% | +2.33% |
Max Drawdown (5Y)Largest decline over 5 years | -38.38% | -25.26% | -13.12% |
Max Drawdown (10Y)Largest decline over 10 years | -41.21% | -36.07% | -5.14% |
Current DrawdownCurrent decline from peak | -4.96% | -6.05% | +1.09% |
Average DrawdownAverage peak-to-trough decline | -14.82% | -10.22% | -4.60% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.23% | 4.25% | +1.98% |
Volatility
VZ vs. XLU - Volatility Comparison
Verizon Communications Inc. (VZ) has a higher volatility of 6.87% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.59%. This indicates that VZ's price experiences larger fluctuations and is considered to be riskier than XLU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VZ | XLU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.87% | 5.59% | +1.28% |
Volatility (6M)Calculated over the trailing 6-month period | 17.91% | 11.68% | +6.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.78% | 14.66% | +8.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.66% | 17.34% | +4.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.36% | 19.27% | +1.09% |
Dividends
VZ vs. XLU - Dividend Comparison
VZ's dividend yield for the trailing twelve months is around 5.75%, more than XLU's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VZ Verizon Communications Inc. | 5.75% | 6.68% | 6.68% | 6.96% | 6.53% | 4.85% | 4.21% | 3.95% | 4.22% | 4.39% | 4.26% | 4.79% |
XLU State Street Utilities Select Sector SPDR ETF | 2.67% | 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
VZ and XLU have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VZ has higher volatility (6.87%) compared to XLU (5.59%). In terms of maximum drawdown, VZ dropped -50.66% vs XLU's -51.98%.
VZ currently has the higher Sharpe Ratio (0.84 vs 0.81), 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.
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