XLE vs. XLU
Compare and contrast key facts about Energy Select Sector SPDR Fund (XLE) and Utilities Select Sector SPDR Fund (XLU).
XLE and XLU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLE is a passively managed fund by State Street that tracks the performance of the Energy 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 XLE 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: XLE or XLU.
Key characteristics
| XLE | XLU | |
|---|---|---|
| YTD Return | 15.77% | 28.05% |
| 1Y Return | 18.13% | 31.78% |
| 3Y Return (Ann) | 22.34% | 9.01% |
| 5Y Return (Ann) | 14.98% | 8.14% |
| 10Y Return (Ann) | 5.03% | 9.21% |
| Sharpe Ratio | 0.89 | 2.08 |
| Sortino Ratio | 1.30 | 2.85 |
| Omega Ratio | 1.16 | 1.36 |
| Calmar Ratio | 1.19 | 1.67 |
| Martin Ratio | 2.77 | 9.92 |
| Ulcer Index | 5.71% | 3.28% |
| Daily Std Dev | 17.79% | 15.58% |
| Max Drawdown | -71.54% | -52.27% |
| Current Drawdown | -1.84% | -3.60% |
Correlation
The correlation between XLE and XLU is 0.36, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
XLE vs. XLU - Performance Comparison
In the year-to-date period, XLE achieves a 15.77% return, which is significantly lower than XLU's 28.05% return. Over the past 10 years, XLE has underperformed XLU with an annualized return of 5.03%, while XLU has yielded a comparatively higher 9.21% annualized return. 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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XLE vs. XLU - Expense Ratio Comparison
Both XLE 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
XLE vs. XLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Energy Select Sector SPDR Fund (XLE) 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
XLE vs. XLU - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 3.14%, more than XLU's 2.79% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLE Energy Select Sector SPDR Fund | 3.14% | 3.55% | 3.68% | 4.21% | 5.62% | 5.73% | 3.54% | 3.03% | 2.26% | 3.39% | 2.35% | 1.73% |
XLU Utilities Select Sector SPDR Fund | 2.79% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.42% | 3.67% | 3.19% | 3.86% |
Drawdowns
XLE vs. XLU - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.54%, which is greater than XLU's maximum drawdown of -52.27%. Use the drawdown chart below to compare losses from any high point for XLE and XLU. For additional features, visit the drawdowns tool.
Volatility
XLE vs. XLU - Volatility Comparison
The current volatility for Energy Select Sector SPDR Fund (XLE) is 4.84%, while Utilities Select Sector SPDR Fund (XLU) has a volatility of 5.37%. This indicates that XLE 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.