XLU vs. VPU

Last updated Jun 24, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and VPU (Vanguard Utilities ETF) are both Utilities Equities funds - XLU tracks the Utilities Select Sector Index while VPU tracks the MSCI US Investable Market Utilities 25/50 Index. Both are passively managed. Over the past 10 years, XLU returned 9.35%/yr vs 9.25%/yr for VPU. With a 0.97 correlation, they move nearly in lockstep. XLU charges 0.08%/yr vs 0.09%/yr for VPU.

Performance

XLU vs. VPU - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with XLU having a 6.99% return and VPU slightly lower at 6.78%. Both investments have delivered pretty close results over the past 10 years, with XLU having a 9.35% annualized return and VPU not far behind at 9.25%.

XLU

• 1D: 0.78%
• 1M: 0.02%
• YTD: 6.99%
• 6M: 7.17%
• 1Y: 14.05%
• 3Y*: 14.90%
• 5Y*: 10.60%
• 10Y*: 9.35%

VPU

• 1D: 0.75%
• 1M: -0.09%
• YTD: 6.78%
• 6M: 6.90%
• 1Y: 13.99%
• 3Y*: 14.85%
• 5Y*: 10.36%
• 10Y*: 9.25%

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

XLU vs. VPU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLU State Street Utilities Select Sector SPDR ETF	6.99%	16.03%	23.31%	-7.18%	1.44%	17.70%	0.51%	25.93%	3.94%	12.05%
VPU Vanguard Utilities ETF	6.78%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%

Correlation

The correlation between XLU and VPU 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 (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.97

The correlation between XLU and VPU has been stable across timeframes, ranging from 0.97 to 1.00 - a consistent structural relationship.

XLU vs. VPU - Sectors Allocation Comparison

Sectors	XLU	VPU
Utilities	100.0%	99.3%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.5%
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.2%
Real Estate	-	-
Technology	-	-

Return for Risk

XLU vs. VPU — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 27
XLU Sharpe Ratio Rank: 28
XLU Sortino Ratio Rank: 25
XLU Omega Ratio Rank: 25
XLU Calmar Ratio Rank: 32
XLU Martin Ratio Rank: 26

VPU

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

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. VPU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Vanguard Utilities ETF (VPU). 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	VPU	Difference
Sharpe ratio: Return per unit of total volatility	0.96	0.98	-0.01
Sortino ratio: Return per unit of downside risk	1.37	1.38	-0.01
Omega ratio: Gain probability vs. loss probability	1.17	1.17	0.00
Calmar ratio: Return relative to maximum drawdown	1.54	1.58	-0.04
Martin ratio: Return relative to average drawdown	3.26	3.36	-0.10

XLU vs. VPU - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.96, which is comparable to the VPU Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of XLU and VPU, 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. VPU - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than VPU's maximum drawdown of -46.31%. Use the drawdown chart below to compare losses from any high point for XLU and VPU.

Drawdown Indicators

	XLU	VPU	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-46.31%	-5.67%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-8.90%	-0.28%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	-17.34%	+0.08%
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	-25.15%	-0.11%
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	-36.42%	+0.35%
Current Drawdown Current decline from peak	-4.30%	-4.02%	-0.28%
Average Drawdown Average peak-to-trough decline	-10.21%	-7.78%	-2.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	4.17%	+0.15%

Volatility

XLU vs. VPU - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) and Vanguard Utilities ETF (VPU) have volatilities of 5.21% and 5.15%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLU	VPU	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.21%	5.15%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	11.70%	11.52%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	14.69%	14.44%	+0.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.30%	17.03%	+0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.29%	19.15%	+0.14%

XLU vs. VPU - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than VPU's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLU vs. VPU - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.65%, more than VPU's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VPU Vanguard Utilities ETF	2.59%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%
XLU State Street Utilities Select Sector SPDR ETF	2.65%	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 VPU in my portfolio?

With a correlation of 1.00, XLU and VPU 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 VPU?

XLU has higher volatility (5.21%) compared to VPU (5.15%). In terms of maximum drawdown, XLU dropped -51.98% vs VPU's -46.31%.

Which ETF is better, XLU or VPU?

On 10-year performance, XLU leads with 9.35% vs 9.25% for VPU. On fees, XLU is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLU or VPU?

Over the 10-year period, XLU has performed better with a 9.35% return vs 9.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or VPU?

XLU is cheaper with a 0.08% expense ratio, compared with 0.09% for VPU.

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

XLU has the higher dividend yield at 2.65%, compared with 2.59% for VPU.

What is the main difference between XLU and VPU?

XLU tracks Utilities Select Sector Index, while VPU tracks MSCI US Investable Market Utilities 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLU and 0.09% for VPU.

Which has better risk-adjusted returns?

VPU currently has the higher Sharpe Ratio (0.98 vs 0.96), 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.