XLU vs. UTSL

Last updated Jun 3, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and UTSL (Direxion Daily Utilities Bull 3X Shares) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while UTSL is a Leveraged Equities fund tracking the Utilities Select Sector Index (300%). Both are passively managed. Over the past 5 years, XLU returned 9.31%/yr vs 8.52%/yr for UTSL. With a 0.98 correlation, they move nearly in lockstep. XLU charges 0.08%/yr vs 0.99%/yr for UTSL.

Performance

XLU vs. UTSL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Utilities Select Sector SPDR ETF (XLU) and Direxion Daily Utilities Bull 3X Shares (UTSL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLU achieves a 3.55% return, which is significantly higher than UTSL's 2.68% return.

XLU

• 1D: 1.86%
• 1M: -5.69%
• YTD: 3.55%
• 6M: 1.36%
• 1Y: 9.88%
• 3Y*: 13.91%
• 5Y*: 9.31%
• 10Y*: 9.19%

UTSL

• 1D: 5.67%
• 1M: -17.30%
• YTD: 2.68%
• 6M: -4.83%
• 1Y: 11.96%
• 3Y*: 21.28%
• 5Y*: 8.52%
• 10Y*: —

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

XLU vs. UTSL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	3.55%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	5.35%
UTSL Direxion Daily Utilities Bull 3X Shares	2.68%	29.03%	54.24%	-35.55%	-14.06%	48.16%	-38.58%	81.07%	-2.27%	11.26%

Correlation

The correlation between XLU and UTSL is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (All Time) Calculated using the full available price history since May 4, 2017	0.98

The correlation between XLU and UTSL has been stable across timeframes, ranging from 0.98 to 1.00 - a consistent structural relationship.

XLU vs. UTSL - Sectors Allocation Comparison

Sectors	XLU	UTSL
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. UTSL — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 21
XLU Sharpe Ratio Rank: 20
XLU Sortino Ratio Rank: 19
XLU Omega Ratio Rank: 20
XLU Calmar Ratio Rank: 23
XLU Martin Ratio Rank: 21

UTSL

UTSL Risk / Return Rank: 14
UTSL Sharpe Ratio Rank: 13
UTSL Sortino Ratio Rank: 14
UTSL Omega Ratio Rank: 14
UTSL Calmar Ratio Rank: 14
UTSL Martin Ratio Rank: 13

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. UTSL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Direxion Daily Utilities Bull 3X Shares (UTSL). 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.

	XLU	UTSL	Difference
Sharpe ratio Return per unit of total volatility	0.68	0.28	+0.40
Sortino ratio Return per unit of downside risk	1.01	0.66	+0.35
Omega ratio Gain probability vs. loss probability	1.13	1.08	+0.04
Calmar ratio Return relative to maximum drawdown	1.11	0.46	+0.65
Martin ratio Return relative to average drawdown	2.52	0.99	+1.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLU vs. UTSL - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.68, which is higher than the UTSL Sharpe Ratio of 0.28. The chart below compares the historical Sharpe Ratios of XLU and UTSL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLU	UTSL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.68	0.28	+0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.16	+0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.14	+0.26

Drawdowns

XLU vs. UTSL - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum UTSL drawdown of -79.55%. Use the drawdown chart below to compare losses from any high point for XLU and UTSL.

Drawdown Indicators

	XLU	UTSL	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-79.55%	+27.57%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-28.45%	+19.27%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-46.22%	+28.96%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-68.01%	+42.75%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	—	—
Current Drawdown Current decline from peak	-7.38%	-24.40%	+17.02%
Average Drawdown Average peak-to-trough decline	-10.22%	-33.24%	+23.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.07%	13.24%	-9.17%

Volatility

XLU vs. UTSL - Volatility Comparison

The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 5.41%, while Direxion Daily Utilities Bull 3X Shares (UTSL) has a volatility of 16.49%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than UTSL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	UTSL	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.41%	16.49%	-11.08%
Volatility (6M) Calculated over the trailing 6-month period	11.76%	35.50%	-23.74%
Volatility (1Y) Calculated over the trailing 1-year period	14.56%	43.39%	-28.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.32%	52.02%	-34.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.26%	59.29%	-40.03%

XLU vs. UTSL - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than UTSL's 0.99% expense ratio.

Dividends

XLU vs. UTSL - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.71%, more than UTSL's 1.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
UTSL Direxion Daily Utilities Bull 3X Shares	1.77%	1.69%	1.61%	3.61%	1.15%	1.19%	1.40%	5.01%	1.46%	0.57%	0.00%	0.00%
XLU State Street Utilities Select Sector SPDR ETF	2.71%	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 UTSL in my portfolio?

With a correlation of 1.00, XLU and UTSL move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLU or UTSL?

UTSL has higher volatility (16.49%) compared to XLU (5.41%). In terms of maximum drawdown, XLU dropped -51.98% vs UTSL's -79.55%.

Which ETF is better, XLU or UTSL?

On 5-year performance, XLU leads with 9.31% vs 8.52% for UTSL. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 5.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or UTSL?

Over the 5-year period, XLU has performed better with a 9.31% return vs 8.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or UTSL?

XLU is cheaper with a 0.08% expense ratio, compared with 0.99% for UTSL.

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

XLU has the higher dividend yield at 2.71%, compared with 1.77% for UTSL.

What is the main difference between XLU and UTSL?

XLU is categorized as Utilities Equities, while UTSL is Leveraged Equities. XLU tracks Utilities Select Sector Index, while UTSL tracks Utilities Select Sector Index (300%). They also come from different issuers: State Street and Direxion. Their fees differ too: 0.08% for XLU and 0.99% for UTSL.

Which has better risk-adjusted returns?

XLU currently has the higher Sharpe Ratio (0.68 vs 0.28), 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.