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XLU vs. AGG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLU vs. AGG

Last updated Jun 9, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and AGG (iShares Core U.S. Aggregate Bond ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index. Both are passively managed. Over the past 10 years, XLU returned 8.99%/yr vs 1.52%/yr for AGG. At a 0.10 correlation, their price movements are largely independent. XLU charges 0.08%/yr vs 0.03%/yr for AGG.

Performance

XLU vs. AGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and iShares Core U.S. Aggregate Bond ETF (AGG). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XLU achieves a 2.66% return, which is significantly higher than AGG's -0.08% return. Over the past 10 years, XLU has outperformed AGG with an annualized return of 8.99%, while AGG has yielded a comparatively lower 1.52% annualized return.

XLU

1D
-1.87%
1M
-2.68%
YTD
2.66%
6M
3.35%
1Y
10.26%
3Y*
12.85%
5Y*
9.10%
10Y*
8.99%

AGG

1D
0.00%
1M
-0.69%
YTD
-0.08%
6M
0.26%
1Y
4.97%
3Y*
3.88%
5Y*
-0.03%
10Y*
1.52%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLU vs. AGG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLU
State Street Utilities Select Sector SPDR ETF		2.66%16.03%23.31%-7.18%1.44%17.70%0.51%25.93%3.94%12.05%
AGG
iShares Core U.S. Aggregate Bond ETF		-0.08%7.19%1.31%5.65%-13.02%-1.77%7.48%8.46%0.09%3.55%

Correlation

The correlation between XLU and AGG is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.27

Correlation (3Y)
Calculated over the trailing 3-year period

0.30

Correlation (5Y)
Calculated over the trailing 5-year period

0.28

Correlation (10Y)
Calculated over the trailing 10-year period

0.26

Correlation (All Time)
Calculated using the full available price history since Sep 26, 2003

0.10

The correlation between XLU and AGG shifts across timeframes, from 0.10 (all time) to 0.30 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

State Street Utilities Select Sector SPDR ETF

iShares Core U.S. Aggregate Bond ETF

Often compared with XLU:
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Often compared with AGG:
AGG vs. BNDAGG vs. TLTAGG vs. HYGAGG vs. FBNDAGG vs. PIMIXAGG vs. IUSBAGG vs. AGGH

Return for Risk

XLU vs. AGG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLU
XLU Risk / Return Rank: 2222
Overall Rank
XLU Sharpe Ratio Rank: 2222
Sharpe Ratio Rank
XLU Sortino Ratio Rank: 2121
Sortino Ratio Rank
XLU Omega Ratio Rank: 2121
Omega Ratio Rank
XLU Calmar Ratio Rank: 2626
Calmar Ratio Rank
XLU Martin Ratio Rank: 2121
Martin Ratio Rank
AGG
AGG Risk / Return Rank: 4040
Overall Rank
AGG Sharpe Ratio Rank: 4141
Sharpe Ratio Rank
AGG Sortino Ratio Rank: 4242
Sortino Ratio Rank
AGG Omega Ratio Rank: 3939
Omega Ratio Rank
AGG Calmar Ratio Rank: 4040
Calmar Ratio Rank
AGG Martin Ratio Rank: 3838
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XLU vs. AGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.

XLUAGGDifference
Sharpe ratioReturn per unit of total volatility
0.71
1.32

-0.61

Sortino ratioReturn per unit of downside risk
1.04
1.94

-0.90

Omega ratioGain probability vs. loss probability

1.13

1.23

-0.10

Calmar ratioReturn relative to maximum drawdown

1.12

1.81

-0.68

Martin ratioReturn relative to average drawdown

2.47

5.44

-2.96

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLU vs. AGG - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.71, which is lower than the AGG Sharpe Ratio of 1.32. The chart below compares the historical Sharpe Ratios of XLU and AGG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

XLUAGGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.71

1.32

-0.61

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.53

-0.00

+0.53

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.47

0.28

+0.19

Sharpe Ratio (All Time)

Calculated using the full available price history

0.40

0.59

-0.19

Drawdowns

XLU vs. AGG - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than AGG's maximum drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for XLU and AGG.

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Drawdown Indicators

XLUAGGDifference

Max Drawdown

Largest peak-to-trough decline

-51.98%

-18.43%

-33.55%

Max Drawdown (1Y)

Largest decline over 1 year

-9.18%

-2.76%

-6.42%

Max Drawdown (3Y)

Largest decline over 3 years

-17.26%

-6.11%

-11.15%

Max Drawdown (5Y)

Largest decline over 5 years

-25.26%

-17.82%

-7.44%

Max Drawdown (10Y)

Largest decline over 10 years

-36.07%

-18.43%

-17.64%

Current Drawdown

Current decline from peak

-8.18%

-2.47%

-5.71%

Average Drawdown

Average peak-to-trough decline

-10.22%

-2.71%

-7.51%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.16%

0.92%

+3.24%

Volatility

XLU vs. AGG - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.60% compared to iShares Core U.S. Aggregate Bond ETF (AGG) at 1.29%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XLUAGGDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.60%

1.29%

+4.31%

Volatility (6M)

Calculated over the trailing 6-month period

11.70%

2.77%

+8.93%

Volatility (1Y)

Calculated over the trailing 1-year period

14.64%

3.80%

+10.84%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.34%

6.09%

+11.25%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.27%

5.41%

+13.86%

XLU vs. AGG - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is higher than AGG's 0.03% 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%.

Dividends

XLU vs. AGG - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.73%, less than AGG's 4.00% yield.

PositionTTM20252024202320222021202020192018201720162015
AGG
iShares Core U.S. Aggregate Bond ETF		4.00%3.89%3.74%3.13%2.39%1.77%2.14%2.70%2.72%2.32%2.39%2.45%
XLU
State Street Utilities Select Sector SPDR ETF		2.73%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

XLU and AGG have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLU has higher volatility (5.60%) compared to AGG (1.29%). In terms of maximum drawdown, XLU dropped -51.98% vs AGG's -18.43%.

On 10-year performance, XLU leads with 8.99% vs 1.52% for AGG. On fees, AGG is cheaper at 0.03% per year. On volatility, AGG has been the lower-risk option at 1.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, XLU has performed better with a 8.99% return vs 1.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

AGG is cheaper with a 0.03% expense ratio, compared with 0.08% for XLU.

AGG has the higher dividend yield at 4.00%, compared with 2.73% for XLU.

XLU is categorized as Utilities Equities, while AGG is Total Bond Market. XLU tracks Utilities Select Sector Index, while AGG tracks Bloomberg U.S. Aggregate Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLU and 0.03% for AGG.

AGG currently has the higher Sharpe Ratio (1.32 vs 0.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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