XLP vs. VPU
Compare and contrast key facts about Consumer Staples Select Sector SPDR Fund (XLP) and Vanguard Utilities ETF (VPU).
XLP and VPU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLP is a passively managed fund by State Street that tracks the performance of the Consumer Staples Select Sector Index. It was launched on Dec 16, 1998. VPU is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Utilities 25/50 Index. It was launched on Jan 26, 2004. Both XLP and VPU 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: XLP or VPU.
Key characteristics
| XLP | VPU | |
|---|---|---|
| YTD Return | 6.12% | 9.33% |
| 1Y Return | 2.13% | 3.44% |
| 3Y Return (Ann) | 5.57% | 4.03% |
| 5Y Return (Ann) | 8.60% | 6.02% |
| 10Y Return (Ann) | 8.51% | 8.27% |
| Sharpe Ratio | 0.18 | 0.25 |
| Daily Std Dev | 10.49% | 17.02% |
| Max Drawdown | -35.89% | -46.31% |
| Current Drawdown | -0.63% | -6.91% |
Correlation
The correlation between XLP and VPU is 0.61, 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
XLP vs. VPU - Performance Comparison
In the year-to-date period, XLP achieves a 6.12% return, which is significantly lower than VPU's 9.33% return. Both investments have delivered pretty close results over the past 10 years, with XLP having a 8.51% annualized return and VPU not far behind at 8.27%. 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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XLP vs. VPU - Expense Ratio Comparison
XLP has a 0.13% expense ratio, which is higher than VPU's 0.10% 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%.
Risk-Adjusted Performance
XLP vs. VPU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Staples Select Sector SPDR Fund (XLP) and Vanguard Utilities ETF (VPU). 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
XLP vs. VPU - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.77%, less than VPU's 3.18% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLP Consumer Staples Select Sector SPDR Fund | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% | 2.40% | 2.39% |
VPU Vanguard Utilities ETF | 3.18% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% | 3.02% | 3.76% |
Drawdowns
XLP vs. VPU - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.89%, smaller than the maximum VPU drawdown of -46.31%. Use the drawdown chart below to compare losses from any high point for XLP and VPU. For additional features, visit the drawdowns tool.
Volatility
XLP vs. VPU - Volatility Comparison
The current volatility for Consumer Staples Select Sector SPDR Fund (XLP) is 2.48%, while Vanguard Utilities ETF (VPU) has a volatility of 4.68%. This indicates that XLP experiences smaller price fluctuations and is considered to be less risky than VPU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.