XAD.TO vs. XLU
XAD.TO (iShares U.S. Aerospace & Defense Index ETF) and XLU (State Street Utilities Select Sector SPDR ETF) are both exchange-traded funds - XAD.TO is a Aerospace & Defense fund tracking the Dow Jones U.S. Select Aerospace & Defense Index, while XLU is a Utilities Equities fund tracking the Utilities Select Sector Index. Both are passively managed. Over the past year, XAD.TO returned 34.40% vs 15.61% for XLU. At a 0.19 correlation, their price movements are largely independent. XAD.TO charges 0.44%/yr vs 0.08%/yr for XLU.
Performance
XAD.TO vs. XLU - Performance Comparison
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Different Trading Currencies
XAD.TO is traded in CAD, while XLU is traded in USD. To make them comparable, the XLU values have been converted to CAD using the latest available exchange rates.
Returns By Period
In the year-to-date period, XAD.TO achieves a 11.18% return, which is significantly higher than XLU's 7.17% return.
XAD.TO
- 1D
- -0.47%
- 1M
- 9.47%
- YTD
- 11.18%
- 6M
- 13.68%
- 1Y
- 34.40%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
XLU
- 1D
- 1.28%
- 1M
- 1.11%
- YTD
- 7.17%
- 6M
- 6.99%
- 1Y
- 15.61%
- 3Y*
- 15.49%
- 5Y*
- 12.62%
- 10Y*
- 10.14%
XAD.TO vs. XLU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
XAD.TO iShares U.S. Aerospace & Defense Index ETF | 11.18% | 41.77% | 25.00% | 13.86% |
XLU State Street Utilities Select Sector SPDR ETF | 7.17% | 10.73% | 33.75% | -2.84% |
Correlation
The correlation between XAD.TO and XLU is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2023 | 0.19 |
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Return for Risk
XAD.TO vs. XLU — Risk / Return Rank
XAD.TO
XLU
XAD.TO vs. XLU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Aerospace & Defense Index ETF (XAD.TO) 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.
| XAD.TO | XLU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.71 | ||
| Sortino ratioReturn per unit of downside risk | +1.06 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.17 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 1.35 | +0.99 |
| Martin ratioReturn relative to average drawdown | 5.89 | 2.95 | +2.94 |
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Drawdowns
XAD.TO vs. XLU - Drawdown Comparison
The maximum XAD.TO drawdown since its inception was -16.06%, smaller than the maximum XLU drawdown of -34.46%. Use the drawdown chart below to compare losses from any high point for XAD.TO and XLU.
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Drawdown Indicators
| XAD.TO | XLU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.06% | -34.46% | +18.40% |
Max Drawdown (1Y)Largest decline over 1 year | -14.91% | -10.67% | -4.24% |
Max Drawdown (3Y)Largest decline over 3 years | — | -14.85% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -22.10% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -30.15% | — |
Current DrawdownCurrent decline from peak | -4.29% | -4.73% | +0.44% |
Average DrawdownAverage peak-to-trough decline | -2.90% | -8.26% | +5.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.91% | 4.88% | +1.03% |
Volatility
XAD.TO vs. XLU - Volatility Comparison
iShares U.S. Aerospace & Defense Index ETF (XAD.TO) has a higher volatility of 7.54% compared to State Street Utilities Select Sector SPDR ETF (XLU) at 5.65%. This indicates that XAD.TO'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
| XAD.TO | XLU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.54% | 5.65% | +1.89% |
Volatility (6M)Calculated over the trailing 6-month period | 17.69% | 11.98% | +5.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.24% | 15.44% | +5.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.92% | 18.48% | +1.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.92% | 20.41% | -0.49% |
XAD.TO vs. XLU - Expense Ratio Comparison
XAD.TO has a 0.44% expense ratio, which is higher than XLU's 0.08% expense ratio.
Dividends
XAD.TO vs. XLU - Dividend Comparison
XAD.TO's dividend yield for the trailing twelve months is around 0.32%, less than XLU's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XAD.TO iShares U.S. Aerospace & Defense Index ETF | 0.32% | 0.35% | 0.44% | 0.24% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
XAD.TO and XLU have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, XLU is cheaper at 0.08% per year. The better choice depends on whether you care most about return, fees, risk, or income.
XLU is cheaper with a 0.08% expense ratio, compared with 0.44% for XAD.TO.
XAD.TO is categorized as Aerospace & Defense, while XLU is Utilities Equities. XAD.TO tracks Dow Jones U.S. Select Aerospace & Defense Index, while XLU tracks Utilities Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.44% for XAD.TO and 0.08% for XLU.
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