XLU vs. FXU

Last updated Jun 3, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and FXU (First Trust Utilities AlphaDEX Fund) are both Utilities Equities funds - XLU tracks the Utilities Select Sector Index while FXU tracks the StrataQuant Utilities Index. Both are passively managed. Over the past 10 years, XLU returned 9.19%/yr vs 9.22%/yr for FXU. Their correlation of 0.86 suggests significant overlap in exposure. XLU charges 0.08%/yr vs 0.62%/yr for FXU.

Performance

XLU vs. FXU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and First Trust Utilities AlphaDEX Fund (FXU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLU achieves a 3.55% return, which is significantly lower than FXU's 6.21% return. Both investments have delivered pretty close results over the past 10 years, with XLU having a 9.19% annualized return and FXU not far ahead at 9.22%.

XLU

• 1D: 1.86%
• 1M: -5.69%
• YTD: 3.55%
• 6M: 1.36%
• 1Y: 9.88%
• 3Y*: 13.91%
• 5Y*: 9.31%
• 10Y*: 9.19%

FXU

• 1D: 1.45%
• 1M: -3.84%
• YTD: 6.21%
• 6M: 4.77%
• 1Y: 13.68%
• 3Y*: 17.54%
• 5Y*: 11.66%
• 10Y*: 9.22%

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

XLU vs. FXU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	3.55%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
FXU First Trust Utilities AlphaDEX Fund	6.21%	21.86%	22.50%	-2.12%	3.68%	17.67%	1.53%	11.67%	5.43%	0.98%

Correlation

The correlation between XLU and FXU is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.86

The correlation between XLU and FXU has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.

XLU vs. FXU - Sectors Allocation Comparison

Sectors	XLU	FXU
Utilities	100.0%	92.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	3.7%
Financial Services	-	-
Healthcare	-	-
Industrials	-	4.2%
Real Estate	-	-
Technology	-	-

Return for Risk

XLU vs. FXU — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 21
XLU Sharpe Ratio Rank: 20
XLU Sortino Ratio Rank: 19
XLU Omega Ratio Rank: 20
XLU Calmar Ratio Rank: 23
XLU Martin Ratio Rank: 21

FXU

FXU Risk / Return Rank: 29
FXU Sharpe Ratio Rank: 29
FXU Sortino Ratio Rank: 27
FXU Omega Ratio Rank: 27
FXU Calmar Ratio Rank: 33
FXU Martin Ratio Rank: 31

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. FXU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and First Trust Utilities AlphaDEX Fund (FXU). 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.

	XLU	FXU	Difference
Sharpe ratio Return per unit of total volatility	0.68	1.04	-0.36
Sortino ratio Return per unit of downside risk	1.01	1.48	-0.47
Omega ratio Gain probability vs. loss probability	1.13	1.18	-0.05
Calmar ratio Return relative to maximum drawdown	1.11	1.62	-0.50
Martin ratio Return relative to average drawdown	2.52	4.59	-2.08
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. FXU - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.68, which is lower than the FXU Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of XLU and FXU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLU	FXU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.68	1.04	-0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.71	-0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.50	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.42	-0.02

Drawdowns

XLU vs. FXU - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than FXU's maximum drawdown of -49.00%. Use the drawdown chart below to compare losses from any high point for XLU and FXU.

Drawdown Indicators

	XLU	FXU	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-49.00%	-2.98%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-8.63%	-0.55%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-17.46%	+0.20%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-21.87%	-3.39%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-34.81%	-1.26%
Current Drawdown Current decline from peak	-7.38%	-7.31%	-0.07%
Average Drawdown Average peak-to-trough decline	-10.22%	-7.64%	-2.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.07%	3.04%	+1.03%

Volatility

XLU vs. FXU - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.41% compared to First Trust Utilities AlphaDEX Fund (FXU) at 4.69%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than FXU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	FXU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	4.69%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	11.76%	10.36%	+1.40%
Volatility (1Y) Calculated over the trailing 1-year period	14.56%	13.17%	+1.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	16.59%	+0.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.26%	18.33%	+0.93%

XLU vs. FXU - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than FXU's 0.62% expense ratio.

Dividends

XLU vs. FXU - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.71%, more than FXU's 2.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXU First Trust Utilities AlphaDEX Fund	2.20%	2.29%	2.41%	2.52%	2.03%	2.00%	3.97%	2.34%	2.40%	3.81%	2.62%	3.90%
XLU State Street Utilities Select Sector SPDR ETF	2.71%	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 FXU in my portfolio?

With a correlation of 0.93, XLU and FXU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLU or FXU?

XLU has higher volatility (5.41%) compared to FXU (4.69%). In terms of maximum drawdown, XLU dropped -51.98% vs FXU's -49.00%.

Which ETF is better, XLU or FXU?

On 10-year performance, FXU leads with 9.22% vs 9.19% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, FXU has been the lower-risk option at 4.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or FXU?

Over the 10-year period, FXU has performed better with a 9.22% return vs 9.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or FXU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.62% for FXU.

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

XLU has the higher dividend yield at 2.71%, compared with 2.20% for FXU.

What is the main difference between XLU and FXU?

XLU tracks Utilities Select Sector Index, while FXU tracks StrataQuant Utilities Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.08% for XLU and 0.62% for FXU.

Which has better risk-adjusted returns?

FXU currently has the higher Sharpe Ratio (1.04 vs 0.68), 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.