XLU vs. SPY
Compare and contrast key facts about Utilities Select Sector SPDR Fund (XLU) and SPDR S&P 500 ETF (SPY).
XLU and SPY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLU is a passively managed fund by State Street that tracks the performance of the Utilities Select Sector Index. It was launched on Dec 16, 1998. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both XLU and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLU or SPY.
Key characteristics
| XLU | SPY | |
|---|---|---|
| YTD Return | 9.47% | 9.02% |
| 1Y Return | 3.04% | 27.00% |
| 3Y Return (Ann) | 4.59% | 8.59% |
| 5Y Return (Ann) | 7.21% | 14.29% |
| 10Y Return (Ann) | 8.54% | 12.67% |
| Sharpe Ratio | 0.22 | 2.52 |
| Daily Std Dev | 17.06% | 11.53% |
| Max Drawdown | -52.27% | -55.19% |
| Current Drawdown | -6.90% | -1.26% |
Correlation
The correlation between XLU and SPY is 0.51, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XLU vs. SPY - Performance Comparison
The year-to-date returns for both stocks are quite close, with XLU having a 9.47% return and SPY slightly lower at 9.02%. Over the past 10 years, XLU has underperformed SPY with an annualized return of 8.54%, while SPY has yielded a comparatively higher 12.67% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLU vs. SPY - Expense Ratio Comparison
XLU has a 0.13% expense ratio, which is higher than SPY's 0.09% 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%.
Risk-Adjusted Performance
XLU vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Utilities Select Sector SPDR Fund (XLU) and SPDR S&P 500 ETF (SPY). 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.
Dividends
XLU vs. SPY - Dividend Comparison
XLU's dividend yield for the trailing twelve months is around 3.16%, more than SPY's 1.30% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLU Utilities Select Sector SPDR Fund | 3.16% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.41% | 3.67% | 3.19% | 3.86% |
SPY SPDR S&P 500 ETF | 1.30% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
XLU vs. SPY - Drawdown Comparison
The maximum XLU drawdown since its inception was -52.27%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for XLU and SPY. For additional features, visit the drawdowns tool.
Volatility
XLU vs. SPY - Volatility Comparison
Utilities Select Sector SPDR Fund (XLU) has a higher volatility of 4.55% compared to SPDR S&P 500 ETF (SPY) at 4.07%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.