XLU vs. GOVT
XLU (State Street Utilities Select Sector SPDR ETF) and GOVT (iShares U.S. Treasury Bond ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index. Both are passively managed. Over the past 10 years, XLU returned 8.99%/yr vs 0.79%/yr for GOVT. At a 0.15 correlation, their price movements are largely independent. XLU charges 0.08%/yr vs 0.05%/yr for GOVT.
Performance
XLU vs. GOVT - Performance Comparison
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Returns By Period
In the year-to-date period, XLU achieves a 2.66% return, which is significantly higher than GOVT's -0.44% return. Over the past 10 years, XLU has outperformed GOVT with an annualized return of 8.99%, while GOVT has yielded a comparatively lower 0.79% 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%
GOVT
- 1D
- -0.11%
- 1M
- -0.70%
- YTD
- -0.44%
- 6M
- -0.15%
- 1Y
- 3.62%
- 3Y*
- 2.77%
- 5Y*
- -0.59%
- 10Y*
- 0.79%
XLU vs. GOVT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
GOVT iShares U.S. Treasury Bond ETF | -0.44% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
Correlation
The correlation between XLU and GOVT is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.23 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2012 | 0.15 |
The correlation between XLU and GOVT shifts across timeframes, from 0.15 (all time) to 0.27 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLU vs. GOVT — Risk / Return Rank
XLU
GOVT
XLU vs. GOVT - 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 U.S. Treasury Bond ETF (GOVT). 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 | GOVT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.32 | ||
| Sortino ratioReturn per unit of downside risk | -0.50 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.17 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.12 | 1.27 | -0.15 |
| Martin ratioReturn relative to average drawdown | 2.47 | 3.66 | -1.19 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XLU | GOVT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.71 | 1.02 | -0.32 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.53 | -0.10 | +0.63 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.15 | +0.32 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.40 | 0.25 | +0.14 |
Drawdowns
XLU vs. GOVT - Drawdown Comparison
The maximum XLU drawdown since its inception was -51.98%, which is greater than GOVT's maximum drawdown of -19.07%. Use the drawdown chart below to compare losses from any high point for XLU and GOVT.
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Drawdown Indicators
| XLU | GOVT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.98% | -19.07% | -32.91% |
Max Drawdown (1Y)Largest decline over 1 year | -9.18% | -2.85% | -6.33% |
Max Drawdown (3Y)Largest decline over 3 years | -17.26% | -5.43% | -11.83% |
Max Drawdown (5Y)Largest decline over 5 years | -25.26% | -16.60% | -8.66% |
Max Drawdown (10Y)Largest decline over 10 years | -36.07% | -19.07% | -17.00% |
Current DrawdownCurrent decline from peak | -8.18% | -7.48% | -0.70% |
Average DrawdownAverage peak-to-trough decline | -10.22% | -5.25% | -4.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.16% | 0.99% | +3.17% |
Volatility
XLU vs. GOVT - Volatility Comparison
State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.60% compared to iShares U.S. Treasury Bond ETF (GOVT) at 1.05%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than GOVT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLU | GOVT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.60% | 1.05% | +4.55% |
Volatility (6M)Calculated over the trailing 6-month period | 11.70% | 2.53% | +9.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.64% | 3.56% | +11.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.34% | 6.04% | +11.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.27% | 5.23% | +14.04% |
XLU vs. GOVT - Expense Ratio Comparison
XLU has a 0.08% expense ratio, which is higher than GOVT's 0.05% 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. GOVT - Dividend Comparison
XLU's dividend yield for the trailing twelve months is around 2.73%, less than GOVT's 3.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.60% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
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 GOVT have a correlation of 0.24, 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 GOVT (1.05%). In terms of maximum drawdown, XLU dropped -51.98% vs GOVT's -19.07%.
On 10-year performance, XLU leads with 8.99% vs 0.79% for GOVT. On fees, GOVT is cheaper at 0.05% per year. On volatility, GOVT has been the lower-risk option at 1.05%. 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 0.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.08% for XLU.
GOVT has the higher dividend yield at 3.60%, compared with 2.73% for XLU.
XLU is categorized as Utilities Equities, while GOVT is Government Bonds. XLU tracks Utilities Select Sector Index, while GOVT tracks ICE U.S. Treasury Core Bond Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLU and 0.05% for GOVT.
GOVT currently has the higher Sharpe Ratio (1.02 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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