PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
XLU vs. SMH
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLU vs. SMH

Last updated Jun 13, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, XLU returned 9.20%/yr vs 37.49%/yr for SMH. At a 0.27 correlation, their price movements are largely independent. XLU charges 0.08%/yr vs 0.35%/yr for SMH.

Performance

XLU vs. SMH - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, XLU achieves a 5.04% return, which is significantly lower than SMH's 72.15% return. Over the past 10 years, XLU has underperformed SMH with an annualized return of 9.20%, while SMH has yielded a comparatively higher 37.49% annualized return.

XLU

1D
1.09%
1M
-0.31%
YTD
5.04%
6M
5.48%
1Y
11.85%
3Y*
13.79%
5Y*
9.41%
10Y*
9.20%

SMH

1D
1.72%
1M
8.30%
YTD
72.15%
6M
75.62%
1Y
136.32%
3Y*
60.05%
5Y*
38.42%
10Y*
37.49%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLU vs. SMH - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
SMH
VanEck Semiconductor ETF		72.15%49.17%39.10%73.38%-33.53%42.13%55.53%64.45%-9.05%38.48%

Correlation

The correlation between XLU and SMH is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.13

Correlation (3Y)
Calculated over the trailing 3-year period

0.07

Correlation (5Y)
Calculated over the trailing 5-year period

0.13

Correlation (10Y)
Calculated over the trailing 10-year period

0.13

Correlation (All Time)
Calculated using the full available price history since Jun 5, 2000

0.27

The correlation between XLU and SMH shifts across timeframes, from 0.07 (3 years) to 0.27 (all time), reflecting how their relationship changes across market environments.

XLU vs. SMH - Sectors Allocation Comparison

Sectors
XLU
SMH

Utilities

100.0%

-

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

-

Healthcare

-

-

Industrials

-

-

Real Estate

-

-

Technology

-

100.0%

Utilities

XLU
100.0%
SMH

-

Basic Materials

XLU

-

SMH

-

Communication Services

XLU

-

SMH

-

Consumer Cyclical

XLU

-

SMH

-

Consumer Defensive

XLU

-

SMH

-

Energy

XLU

-

SMH

-

Financial Services

XLU

-

SMH

-

Healthcare

XLU

-

SMH

-

Industrials

XLU

-

SMH

-

Real Estate

XLU

-

SMH

-

Technology

XLU

-

SMH
100.0%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

State Street Utilities Select Sector SPDR ETF

VanEck Semiconductor ETF

Often compared with XLU:
XLU vs. VPUXLU vs. XLEXLU vs. XLPXLU vs. SPYXLU vs. FUTYXLU vs. UTESXLU vs. IDU
Often compared with SMH:
SMH vs. SOXXSMH vs. QQQSMH vs. VGTSMH vs. FSELXSMH vs. SPYSMH vs. SMHXSMH vs. XLK

Return for Risk

XLU vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLU
XLU Risk / Return Rank: 2626
Overall Rank
XLU Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
XLU Sortino Ratio Rank: 2424
Sortino Ratio Rank
XLU Omega Ratio Rank: 2424
Omega Ratio Rank
XLU Calmar Ratio Rank: 3030
Calmar Ratio Rank
XLU Martin Ratio Rank: 2424
Martin Ratio Rank
SMH
SMH Risk / Return Rank: 9696
Overall Rank
SMH Sharpe Ratio Rank: 9797
Sharpe Ratio Rank
SMH Sortino Ratio Rank: 9494
Sortino Ratio Rank
SMH Omega Ratio Rank: 9494
Omega Ratio Rank
SMH Calmar Ratio Rank: 9797
Calmar Ratio Rank
SMH Martin Ratio Rank: 9696
Martin Ratio Rank
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. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and VanEck Semiconductor ETF (SMH). 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.

XLUSMHDifference
Sharpe ratioReturn per unit of total volatility
0.81
4.13

-3.32

Sortino ratioReturn per unit of downside risk
1.18
4.26

-3.08

Omega ratioGain probability vs. loss probability

1.15

1.60

-0.45

Calmar ratioReturn relative to maximum drawdown

1.30

9.18

-7.89

Martin ratioReturn relative to average drawdown

2.80

33.74

-30.94

XLU vs. SMH - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.81, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of XLU and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

XLU vs. SMH - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XLU and SMH.

Loading charts...

Drawdown Indicators

XLUSMHDifference

Max Drawdown

Largest peak-to-trough decline

-51.98%

-84.96%

+32.98%

Max Drawdown (1Y)

Largest decline over 1 year

-9.18%

-14.93%

+5.75%

Max Drawdown (3Y)

Largest decline over 3 years

-17.26%

-35.74%

+18.48%

Max Drawdown (5Y)

Largest decline over 5 years

-25.26%

-45.30%

+20.04%

Max Drawdown (10Y)

Largest decline over 10 years

-36.07%

-45.30%

+9.23%

Current Drawdown

Current decline from peak

-6.05%

-2.81%

-3.24%

Average Drawdown

Average peak-to-trough decline

-10.22%

-41.04%

+30.82%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.25%

4.06%

+0.19%

Volatility

XLU vs. SMH - Volatility Comparison

The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 5.59%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

XLUSMHDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.59%

16.25%

-10.66%

Volatility (6M)

Calculated over the trailing 6-month period

11.68%

27.73%

-16.05%

Volatility (1Y)

Calculated over the trailing 1-year period

14.66%

33.20%

-18.54%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.34%

35.47%

-18.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.27%

32.82%

-13.55%

XLU vs. SMH - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than SMH's 0.35% expense ratio.

Dividends

XLU vs. SMH - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.67%, more than SMH's 0.18% yield.

PositionTTM20252024202320222021202020192018201720162015
SMH
VanEck Semiconductor ETF		0.18%0.31%0.44%0.60%1.18%0.51%0.69%1.50%1.88%1.43%0.80%2.14%
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

XLU and SMH have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

SMH has higher volatility (16.25%) compared to XLU (5.59%). In terms of maximum drawdown, XLU dropped -51.98% vs SMH's -84.96%.

On 10-year performance, SMH leads with 37.49% vs 9.20% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 5.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, SMH has performed better with a 37.49% return vs 9.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLU is cheaper with a 0.08% expense ratio, compared with 0.35% for SMH.

XLU has the higher dividend yield at 2.67%, compared with 0.18% for SMH.

XLU is categorized as Utilities Equities, while SMH is Semiconductors. XLU tracks Utilities Select Sector Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: State Street and VanEck. Their fees differ too: 0.08% for XLU and 0.35% for SMH.

SMH currently has the higher Sharpe Ratio (4.13 vs 0.81), 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.

Portfolio Optimizer

Find the right allocation for XLU and SMH

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer