XLU vs. SH

Last updated Jun 14, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and SH (ProShares Short S&P500) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while SH is a Inverse Equities fund tracking the S&P 500 (-100%). Both are passively managed. Over the past 10 years, XLU returned 9.20%/yr vs -12.83%/yr for SH. At a correlation of -0.48, they often move in opposite directions. XLU charges 0.08%/yr vs 0.90%/yr for SH.

Performance

XLU vs. SH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and ProShares Short S&P500 (SH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLU achieves a 5.04% return, which is significantly higher than SH's -6.39% return. Over the past 10 years, XLU has outperformed SH with an annualized return of 9.20%, while SH has yielded a comparatively lower -12.83% annualized return.

XLU

• 1D: 1.09%
• 1M: -0.82%
• YTD: 5.04%
• 6M: 5.48%
• 1Y: 12.50%
• 3Y*: 13.79%
• 5Y*: 9.41%
• 10Y*: 9.20%

SH

• 1D: -0.50%
• 1M: 1.30%
• YTD: -6.39%
• 6M: -6.43%
• 1Y: -15.90%
• 3Y*: -11.96%
• 5Y*: -8.68%
• 10Y*: -12.83%

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

XLU vs. SH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	5.04%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
SH ProShares Short S&P500	-6.39%	-11.35%	-13.52%	-14.80%	18.98%	-24.21%	-25.09%	-22.12%	4.93%	-17.36%

Correlation

The correlation between XLU and SH is -0.19, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.19
Correlation (3Y) Calculated over the trailing 3-year period	-0.28
Correlation (5Y) Calculated over the trailing 5-year period	-0.37
Correlation (10Y) Calculated over the trailing 10-year period	-0.36
Correlation (All Time) Calculated using the full available price history since Jun 21, 2006	-0.48

Over the past year, the inverse relationship between XLU and SH has weakened: their correlation has moved from -0.48 to -0.19, meaning they move in opposite directions less often than they have historically.

XLU vs. SH - Sectors Allocation Comparison

Sectors	XLU	SH
Utilities	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	75.1%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

XLU vs. SH — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 26
XLU Sharpe Ratio Rank: 26
XLU Sortino Ratio Rank: 24
XLU Omega Ratio Rank: 24
XLU Calmar Ratio Rank: 30
XLU Martin Ratio Rank: 24

SH

SH Risk / Return Rank: 1
SH Sharpe Ratio Rank: 0
SH Sortino Ratio Rank: 1
SH Omega Ratio Rank: 1
SH Calmar Ratio Rank: 2
SH Martin Ratio Rank: 1

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. SH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and ProShares Short S&P500 (SH). 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	SH	Difference
Sharpe ratio: Return per unit of total volatility	0.81	-1.22	+2.03
Sortino ratio: Return per unit of downside risk	1.18	-1.75	+2.94
Omega ratio: Gain probability vs. loss probability	1.15	0.81	+0.34
Calmar ratio: Return relative to maximum drawdown	1.30	-0.82	+2.12
Martin ratio: Return relative to average drawdown	2.80	-1.47	+4.27

XLU vs. SH - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.81, which is higher than the SH Sharpe Ratio of -1.22. The chart below compares the historical Sharpe Ratios of XLU and SH, 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. SH - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum SH drawdown of -94.66%. Use the drawdown chart below to compare losses from any high point for XLU and SH.

Drawdown Indicators

	XLU	SH	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-94.66%	+42.68%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-18.16%	+8.98%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-38.82%	+21.56%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-44.53%	+19.27%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-76.12%	+40.05%
Current Drawdown Current decline from peak	-6.05%	-94.53%	+88.48%
Average Drawdown Average peak-to-trough decline	-10.22%	-67.75%	+57.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.25%	10.13%	-5.88%

Volatility

XLU vs. SH - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.59% compared to ProShares Short S&P500 (SH) at 4.33%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than SH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	SH	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	4.33%	+1.26%
Volatility (6M) Calculated over the trailing 6-month period	11.68%	9.59%	+2.09%
Volatility (1Y) Calculated over the trailing 1-year period	14.66%	12.28%	+2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	16.91%	+0.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.27%	18.04%	+1.23%

XLU vs. SH - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than SH's 0.90% expense ratio.

Dividends

XLU vs. SH - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.67%, less than SH's 4.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SH ProShares Short S&P500	4.43%	4.49%	6.20%	5.37%	1.08%	0.00%	0.16%	1.76%	1.01%	0.06%	0.00%	0.00%
XLU State Street Utilities Select Sector SPDR ETF	2.67%	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 SH in my portfolio?

XLU and SH have a correlation of -0.19, 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 SH?

XLU has higher volatility (5.59%) compared to SH (4.33%). In terms of maximum drawdown, XLU dropped -51.98% vs SH's -94.66%.

Which ETF is better, XLU or SH?

On 10-year performance, XLU leads with 9.20% vs -12.83% for SH. On fees, XLU is cheaper at 0.08% per year. On volatility, SH has been the lower-risk option at 4.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or SH?

Over the 10-year period, XLU has performed better with a 9.20% return vs -12.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or SH?

XLU is cheaper with a 0.08% expense ratio, compared with 0.90% for SH.

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

SH has the higher dividend yield at 4.43%, compared with 2.67% for XLU.

What is the main difference between XLU and SH?

XLU is categorized as Utilities Equities, while SH is Inverse Equities. XLU tracks Utilities Select Sector Index, while SH tracks S&P 500 (-100%). They also come from different issuers: State Street and ProShares. Their fees differ too: 0.08% for XLU and 0.90% for SH.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.81 vs -1.22), 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.