XLB vs. XLU
Compare and contrast key facts about Materials Select Sector SPDR ETF (XLB) and Utilities Select Sector SPDR Fund (XLU).
XLB and XLU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. 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 XLB 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: XLB or XLU.
Correlation
The correlation between XLB and XLU is 0.50, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XLB vs. XLU - Performance Comparison
Key characteristics
XLB:
-0.24
XLU:
1.24
XLB:
-0.21
XLU:
1.72
XLB:
0.97
XLU:
1.23
XLB:
-0.20
XLU:
2.05
XLB:
-0.61
XLU:
5.26
XLB:
7.53%
XLU:
4.09%
XLB:
19.44%
XLU:
17.31%
XLB:
-59.83%
XLU:
-52.27%
XLB:
-14.53%
XLU:
-4.24%
Returns By Period
In the year-to-date period, XLB achieves a -1.34% return, which is significantly lower than XLU's 4.06% return. Over the past 10 years, XLB has underperformed XLU with an annualized return of 7.24%, while XLU has yielded a comparatively higher 9.41% annualized return.
XLB
-1.34%
-2.86%
-11.19%
-5.92%
11.90%
7.24%
XLU
4.06%
0.29%
-1.20%
21.77%
9.15%
9.41%
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XLB vs. XLU - Expense Ratio Comparison
Both XLB and XLU have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
XLB vs. XLU — Risk-Adjusted Performance Rank
XLB
XLU
XLB vs. XLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) 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
XLB vs. XLU - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 2.05%, less than XLU's 2.91% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 2.05% | 1.92% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% |
XLU Utilities Select Sector SPDR Fund | 2.91% | 2.96% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.42% | 3.67% | 3.19% |
Drawdowns
XLB vs. XLU - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, which is greater than XLU's maximum drawdown of -52.27%. Use the drawdown chart below to compare losses from any high point for XLB and XLU. For additional features, visit the drawdowns tool.
Volatility
XLB vs. XLU - Volatility Comparison
Materials Select Sector SPDR ETF (XLB) has a higher volatility of 13.94% compared to Utilities Select Sector SPDR Fund (XLU) at 8.75%. This indicates that XLB'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.