XLU vs. UTES

Last updated Jun 23, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and UTES (Virtus Reaves Utilities ETF) are both Utilities Equities funds. XLU is passively managed, while UTES is actively managed. Over the past 10 years, XLU returned 9.26%/yr vs 12.78%/yr for UTES. Their correlation of 0.84 suggests significant overlap in exposure. XLU charges 0.08%/yr vs 0.49%/yr for UTES.

Performance

XLU vs. UTES - Performance Comparison

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

Returns By Period

In the year-to-date period, XLU achieves a 6.16% return, which is significantly higher than UTES's 5.53% return. Over the past 10 years, XLU has underperformed UTES with an annualized return of 9.26%, while UTES has yielded a comparatively higher 12.78% annualized return.

XLU

• 1D: 0.55%
• 1M: -0.76%
• YTD: 6.16%
• 6M: 6.71%
• 1Y: 14.60%
• 3Y*: 14.60%
• 5Y*: 10.41%
• 10Y*: 9.26%

UTES

• 1D: 0.95%
• 1M: 1.74%
• YTD: 5.53%
• 6M: 5.66%
• 1Y: 13.65%
• 3Y*: 24.73%
• 5Y*: 17.31%
• 10Y*: 12.78%

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

XLU vs. UTES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	6.16%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
UTES Virtus Reaves Utilities ETF	5.53%	25.71%	45.35%	-2.46%	0.80%	20.74%	-0.30%	25.48%	5.14%	14.21%

Correlation

The correlation between XLU and UTES is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Sep 24, 2015	0.84

The correlation between XLU and UTES has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.

XLU vs. UTES - Sectors Allocation Comparison

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

Return for Risk

XLU vs. UTES — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 28
XLU Sharpe Ratio Rank: 29
XLU Sortino Ratio Rank: 26
XLU Omega Ratio Rank: 26
XLU Calmar Ratio Rank: 33
XLU Martin Ratio Rank: 26

UTES

UTES Risk / Return Rank: 19
UTES Sharpe Ratio Rank: 19
UTES Sortino Ratio Rank: 18
UTES Omega Ratio Rank: 18
UTES Calmar Ratio Rank: 22
UTES Martin Ratio Rank: 19

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. UTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Virtus Reaves Utilities ETF (UTES). 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	UTES	Difference
Sharpe ratio: Return per unit of total volatility	1.00	0.64	+0.36
Sortino ratio: Return per unit of downside risk	1.41	0.99	+0.42
Omega ratio: Gain probability vs. loss probability	1.18	1.12	+0.06
Calmar ratio: Return relative to maximum drawdown	1.60	0.99	+0.61
Martin ratio: Return relative to average drawdown	3.39	2.15	+1.24

XLU vs. UTES - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 1.00, which is higher than the UTES Sharpe Ratio of 0.64. The chart below compares the historical Sharpe Ratios of XLU and UTES, 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. UTES - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than UTES's maximum drawdown of -35.39%. Use the drawdown chart below to compare losses from any high point for XLU and UTES.

Drawdown Indicators

	XLU	UTES	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-35.39%	-16.59%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-13.88%	+4.70%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-17.62%	+0.36%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-20.40%	-4.86%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-35.39%	-0.68%
Current Drawdown Current decline from peak	-5.05%	-4.32%	-0.73%
Average Drawdown Average peak-to-trough decline	-10.22%	-5.53%	-4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.31%	6.35%	-2.04%

Volatility

XLU vs. UTES - Volatility Comparison

The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 5.26%, while Virtus Reaves Utilities ETF (UTES) has a volatility of 6.78%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than UTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	UTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	6.78%	-1.52%
Volatility (6M) Calculated over the trailing 6-month period	11.72%	16.89%	-5.17%
Volatility (1Y) Calculated over the trailing 1-year period	14.70%	21.52%	-6.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.31%	20.64%	-3.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.28%	20.21%	-0.93%

XLU vs. UTES - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than UTES's 0.49% expense ratio.

Dividends

XLU vs. UTES - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 3.30%, more than UTES's 1.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UTES Virtus Reaves Utilities ETF	1.44%	1.42%	1.51%	2.44%	2.13%	1.94%	2.09%	1.84%	2.09%	3.44%	3.53%	0.61%
XLU State Street Utilities Select Sector SPDR ETF	3.30%	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 UTES in my portfolio?

XLU and UTES have a correlation of 0.80, 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 UTES?

UTES has higher volatility (6.78%) compared to XLU (5.26%). In terms of maximum drawdown, XLU dropped -51.98% vs UTES's -35.39%.

Which ETF is better, XLU or UTES?

On 10-year performance, UTES leads with 12.78% vs 9.26% for XLU. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 5.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or UTES?

Over the 10-year period, UTES has performed better with a 12.78% return vs 9.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or UTES?

XLU is cheaper with a 0.08% expense ratio, compared with 0.49% for UTES.

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

XLU has the higher dividend yield at 3.30%, compared with 1.44% for UTES.

What is the main difference between XLU and UTES?

They also come from different issuers: State Street and Virtus Investment Partners. Their fees differ too: 0.08% for XLU and 0.49% for UTES.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (1.00 vs 0.64), 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.