XLU vs. FNDX

Last updated Jun 12, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and FNDX (Schwab Fundamental U.S. Large Company Index ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while FNDX is a Large Cap Value Equities fund tracking the RAFI Fundamental High Liquidity US Large Index. Both are passively managed. Over the past 10 years, XLU returned 9.14%/yr vs 14.32%/yr for FNDX. At a 0.41 correlation, their price movements are largely independent. XLU charges 0.08%/yr vs 0.25%/yr for FNDX.

Performance

XLU vs. FNDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLU achieves a 3.91% return, which is significantly lower than FNDX's 14.46% return. Over the past 10 years, XLU has underperformed FNDX with an annualized return of 9.14%, while FNDX has yielded a comparatively higher 14.32% annualized return.

XLU

• 1D: 0.11%
• 1M: -2.52%
• YTD: 3.91%
• 6M: 3.83%
• 1Y: 11.99%
• 3Y*: 13.37%
• 5Y*: 9.18%
• 10Y*: 9.14%

FNDX

• 1D: 1.47%
• 1M: 1.97%
• YTD: 14.46%
• 6M: 13.13%
• 1Y: 30.72%
• 3Y*: 20.21%
• 5Y*: 12.91%
• 10Y*: 14.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XLU vs. FNDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	3.91%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
FNDX Schwab Fundamental U.S. Large Company Index ETF	14.46%	16.94%	16.77%	18.23%	-6.92%	31.73%	9.12%	28.65%	-7.30%	17.12%

Correlation

The correlation between XLU and FNDX is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.39
Correlation (All Time) Calculated using the full available price history since Aug 15, 2013	0.41

The correlation between XLU and FNDX shifts across timeframes, from 0.31 (1 year) to 0.46 (5 years), reflecting how their relationship changes across market environments.

XLU vs. FNDX - Sectors Allocation Comparison

Sectors	XLU	FNDX
Utilities	100.0%	3.2%
Basic Materials	-	3.7%
Communication Services	-	10.1%
Consumer Cyclical	-	9.2%
Consumer Defensive	-	7.4%
Energy	-	10.3%
Financial Services	-	14.1%
Healthcare	-	12.0%
Industrials	-	9.3%
Real Estate	-	1.8%
Technology	-	19.1%

Return for Risk

XLU vs. FNDX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XLU

XLU Risk / Return Rank: 28
XLU Sharpe Ratio Rank: 28
XLU Sortino Ratio Rank: 26
XLU Omega Ratio Rank: 26
XLU Calmar Ratio Rank: 32
XLU Martin Ratio Rank: 26

FNDX

FNDX Risk / Return Rank: 93
FNDX Sharpe Ratio Rank: 94
FNDX Sortino Ratio Rank: 93
FNDX Omega Ratio Rank: 92
FNDX Calmar Ratio Rank: 92
FNDX Martin Ratio Rank: 92

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. FNDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Schwab Fundamental U.S. Large Company Index ETF (FNDX). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	XLU	FNDX	Difference
Sharpe ratio: Return per unit of total volatility	0.82	2.96	-2.14
Sortino ratio: Return per unit of downside risk	1.19	4.11	-2.92
Omega ratio: Gain probability vs. loss probability	1.15	1.54	-0.39
Calmar ratio: Return relative to maximum drawdown	1.31	5.09	-3.78
Martin ratio: Return relative to average drawdown	2.84	19.73	-16.89

XLU vs. FNDX - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.82, which is lower than the FNDX Sharpe Ratio of 2.96. The chart below compares the historical Sharpe Ratios of XLU and FNDX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XLU vs. FNDX - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than FNDX's maximum drawdown of -37.72%. Use the drawdown chart below to compare losses from any high point for XLU and FNDX.

Drawdown Indicators

	XLU	FNDX	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-37.72%	-14.26%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-6.06%	-3.12%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-16.30%	-0.96%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-19.06%	-6.20%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-37.72%	+1.65%
Current Drawdown Current decline from peak	-7.06%	-0.77%	-6.29%
Average Drawdown Average peak-to-trough decline	-10.22%	-3.55%	-6.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	1.56%	+2.67%

Volatility

XLU vs. FNDX - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.58% compared to Schwab Fundamental U.S. Large Company Index ETF (FNDX) at 3.07%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than FNDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	FNDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.58%	3.07%	+2.51%
Volatility (6M) Calculated over the trailing 6-month period	11.63%	7.63%	+4.00%
Volatility (1Y) Calculated over the trailing 1-year period	14.63%	10.42%	+4.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	15.22%	+2.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.27%	17.51%	+1.76%

XLU vs. FNDX - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than FNDX's 0.25% expense ratio. Despite the difference, 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. FNDX - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.70%, more than FNDX's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNDX Schwab Fundamental U.S. Large Company Index ETF	1.45%	1.63%	1.76%	1.82%	2.07%	1.64%	2.29%	2.23%	2.40%	1.86%	2.01%	2.01%
XLU State Street Utilities Select Sector SPDR ETF	2.70%	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

Can I hold both XLU and FNDX in my portfolio?

XLU and FNDX have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLU or FNDX?

XLU has higher volatility (5.58%) compared to FNDX (3.07%). In terms of maximum drawdown, XLU dropped -51.98% vs FNDX's -37.72%.

Which ETF is better, XLU or FNDX?

On 10-year performance, FNDX leads with 14.32% vs 9.14% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, FNDX has been the lower-risk option at 3.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or FNDX?

Over the 10-year period, FNDX has performed better with a 14.32% return vs 9.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or FNDX?

XLU is cheaper with a 0.08% expense ratio, compared with 0.25% for FNDX.

Which ETF pays a higher dividend yield, XLU or FNDX?

XLU has the higher dividend yield at 2.70%, compared with 1.45% for FNDX.

What is the main difference between XLU and FNDX?

XLU is categorized as Utilities Equities, while FNDX is Large Cap Value Equities. XLU tracks Utilities Select Sector Index, while FNDX tracks RAFI Fundamental High Liquidity US Large Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.08% for XLU and 0.25% for FNDX.

Which has better risk-adjusted returns?

FNDX currently has the higher Sharpe Ratio (2.96 vs 0.82), 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.