XLU vs. T

Last updated Jun 13, 2026

XLU (State Street Utilities Select Sector SPDR ETF) is Utilities Equities fund tracking the Utilities Select Sector Index, while T (AT&T Inc.) is a stock. Over the past 10 years, XLU returned 9.20%/yr vs 3.33%/yr for T. At a 0.46 correlation, their price movements are largely independent.

Performance

XLU vs. T - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and AT&T Inc. (T). 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 T's -2.96% return. Over the past 10 years, XLU has outperformed T with an annualized return of 9.20%, while T has yielded a comparatively lower 3.33% 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%

T

• 1D: 2.52%
• 1M: -4.69%
• YTD: -2.96%
• 6M: -1.93%
• 1Y: -12.96%
• 3Y*: 20.58%
• 5Y*: 7.38%
• 10Y*: 3.33%

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

XLU vs. T - 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%
T AT&T Inc.	-2.96%	13.97%	44.08%	-2.74%	5.76%	-8.09%	-21.37%	45.55%	-22.25%	-4.01%

Correlation

The correlation between XLU and T is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Dec 22, 1998	0.46

Over the past year, the correlation between XLU and T has dropped to 0.21 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.

Return for Risk

XLU vs. T — 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

T

T Risk / Return Rank: 18
T Sharpe Ratio Rank: 17
T Sortino Ratio Rank: 17
T Omega Ratio Rank: 18
T Calmar Ratio Rank: 21
T Martin Ratio Rank: 15

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. T - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and AT&T Inc. (T). 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	T	Difference
Sharpe ratio: Return per unit of total volatility	0.81	-0.59	+1.40
Sortino ratio: Return per unit of downside risk	1.18	-0.72	+1.90
Omega ratio: Gain probability vs. loss probability	1.15	0.92	+0.23
Calmar ratio: Return relative to maximum drawdown	1.30	-0.59	+1.89
Martin ratio: Return relative to average drawdown	2.80	-1.22	+4.02

XLU vs. T - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.81, which is higher than the T Sharpe Ratio of -0.59. The chart below compares the historical Sharpe Ratios of XLU and T, 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. T - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum T drawdown of -64.15%. Use the drawdown chart below to compare losses from any high point for XLU and T.

Drawdown Indicators

	XLU	T	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-64.15%	+12.17%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-21.87%	+12.69%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-21.87%	+4.61%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-32.01%	+6.75%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-42.35%	+6.28%
Current Drawdown Current decline from peak	-6.05%	-18.12%	+12.07%
Average Drawdown Average peak-to-trough decline	-10.22%	-15.72%	+5.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.25%	10.64%	-6.39%

Volatility

XLU vs. T - Volatility Comparison

The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 5.59%, while AT&T Inc. (T) has a volatility of 8.21%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than T based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	T	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.59%	8.21%	-2.62%
Volatility (6M) Calculated over the trailing 6-month period	11.68%	17.80%	-6.12%
Volatility (1Y) Calculated over the trailing 1-year period	14.66%	22.13%	-7.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	24.01%	-6.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.27%	23.73%	-4.46%

Dividends

XLU vs. T - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.67%, less than T's 4.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
T AT&T Inc.	4.71%	4.47%	4.87%	6.62%	6.66%	8.46%	7.23%	5.22%	7.01%	5.04%	4.51%	5.46%
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 T in my portfolio?

XLU and T have a correlation of 0.21, 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 T?

T has higher volatility (8.21%) compared to XLU (5.59%). In terms of maximum drawdown, XLU dropped -51.98% vs T's -64.15%.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.81 vs -0.59), 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.