XLP vs. XLU
Compare and contrast key facts about Consumer Staples Select Sector SPDR Fund (XLP) and Utilities Select Sector SPDR Fund (XLU).
XLP and XLU 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. 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 XLP 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: XLP or XLU.
Key characteristics
| XLP | XLU | |
|---|---|---|
| YTD Return | 6.12% | 8.91% |
| 1Y Return | 2.13% | 3.17% |
| 3Y Return (Ann) | 5.57% | 4.18% |
| 5Y Return (Ann) | 8.60% | 6.61% |
| 10Y Return (Ann) | 8.51% | 8.37% |
| Sharpe Ratio | 0.18 | 0.23 |
| Daily Std Dev | 10.49% | 17.05% |
| Max Drawdown | -35.89% | -52.27% |
| Current Drawdown | -0.63% | -7.38% |
Correlation
The correlation between XLP and XLU is 0.54, 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. XLU - Performance Comparison
In the year-to-date period, XLP achieves a 6.12% return, which is significantly lower than XLU's 8.91% return. Both investments have delivered pretty close results over the past 10 years, with XLP having a 8.51% annualized return and XLU not far behind at 8.37%. 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. XLU - Expense Ratio Comparison
Both XLP 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
XLP vs. XLU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Consumer Staples Select Sector SPDR Fund (XLP) 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
XLP vs. XLU - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.77%, less than XLU'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% |
XLU Utilities Select Sector SPDR Fund | 3.18% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.41% | 3.67% | 3.19% | 3.86% |
Drawdowns
XLP vs. XLU - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.89%, smaller than the maximum XLU drawdown of -52.27%. Use the drawdown chart below to compare losses from any high point for XLP and XLU. For additional features, visit the drawdowns tool.
Volatility
XLP vs. XLU - Volatility Comparison
The current volatility for Consumer Staples Select Sector SPDR Fund (XLP) is 2.48%, while Utilities Select Sector SPDR Fund (XLU) has a volatility of 4.55%. This indicates that XLP 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.