XLU vs. MO

Last updated Jun 9, 2026

XLU (State Street Utilities Select Sector SPDR ETF) is Utilities Equities fund tracking the Utilities Select Sector Index, while MO (Altria Group, Inc.) is a stock. Over the past 10 years, XLU returned 8.99%/yr vs 7.79%/yr for MO. At a 0.35 correlation, their price movements are largely independent.

Performance

XLU vs. MO - Performance Comparison

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

Returns By Period

In the year-to-date period, XLU achieves a 2.66% return, which is significantly lower than MO's 25.71% return. Over the past 10 years, XLU has outperformed MO with an annualized return of 8.99%, while MO has yielded a comparatively lower 7.79% 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%

MO

• 1D: -1.25%
• 1M: 4.65%
• YTD: 25.71%
• 6M: 27.02%
• 1Y: 28.81%
• 3Y*: 25.85%
• 5Y*: 16.08%
• 10Y*: 7.79%

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

XLU vs. MO - 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%
MO Altria Group, Inc.	25.71%	18.17%	40.76%	-3.70%	4.37%	24.18%	-10.21%	7.87%	-27.14%	9.45%

Correlation

The correlation between XLU and MO is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Dec 23, 1998	0.35

Return for Risk

XLU vs. MO — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 22
XLU Sharpe Ratio Rank: 22
XLU Sortino Ratio Rank: 21
XLU Omega Ratio Rank: 21
XLU Calmar Ratio Rank: 26
XLU Martin Ratio Rank: 21

MO

MO Risk / Return Rank: 74
MO Sharpe Ratio Rank: 78
MO Sortino Ratio Rank: 72
MO Omega Ratio Rank: 74
MO Calmar Ratio Rank: 73
MO Martin Ratio Rank: 74

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. MO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Altria Group, Inc. (MO). 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	MO	Difference
Sharpe ratio: Return per unit of total volatility	0.71	1.29	-0.58
Sortino ratio: Return per unit of downside risk	1.04	1.80	-0.76
Omega ratio: Gain probability vs. loss probability	1.13	1.25	-0.12
Calmar ratio: Return relative to maximum drawdown	1.12	1.76	-0.64
Martin ratio: Return relative to average drawdown	2.47	4.45	-1.98
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. MO - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.71, which is lower than the MO Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of XLU and MO, 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	MO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.71	1.29	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.78	-0.26
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.34	+0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.69	-0.30

Drawdowns

XLU vs. MO - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum MO drawdown of -65.43%. Use the drawdown chart below to compare losses from any high point for XLU and MO.

Drawdown Indicators

	XLU	MO	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-65.43%	+13.45%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-16.40%	+7.22%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-16.40%	-0.86%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-25.83%	+0.57%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-53.69%	+17.62%
Current Drawdown Current decline from peak	-8.18%	-4.37%	-3.81%
Average Drawdown Average peak-to-trough decline	-10.22%	-11.93%	+1.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.16%	6.49%	-2.33%

Volatility

XLU vs. MO - Volatility Comparison

The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 5.60%, while Altria Group, Inc. (MO) has a volatility of 6.69%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than MO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	MO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.60%	6.69%	-1.09%
Volatility (6M) Calculated over the trailing 6-month period	11.70%	17.32%	-5.62%
Volatility (1Y) Calculated over the trailing 1-year period	14.64%	22.53%	-7.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	20.64%	-3.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.27%	22.96%	-3.69%

Dividends

XLU vs. MO - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.73%, less than MO's 5.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MO Altria Group, Inc.	5.89%	7.21%	7.65%	9.52%	8.05%	7.43%	8.29%	6.57%	6.07%	3.56%	3.48%	3.73%
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

Can I hold both XLU and MO in my portfolio?

XLU and MO have a correlation of 0.30, 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 MO?

MO has higher volatility (6.69%) compared to XLU (5.60%). In terms of maximum drawdown, XLU dropped -51.98% vs MO's -65.43%.

Which has better risk-adjusted returns?

MO currently has the higher Sharpe Ratio (1.29 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.