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XLU vs. VYM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLU vs. VYM

Last updated Jun 14, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, XLU returned 9.20%/yr vs 11.95%/yr for VYM. A 0.57 correlation means they provide meaningful diversification when combined. XLU charges 0.08%/yr vs 0.04%/yr for VYM.

Performance

XLU vs. VYM - 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 High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, XLU achieves a 5.04% return, which is significantly lower than VYM's 12.37% return. Over the past 10 years, XLU has underperformed VYM with an annualized return of 9.20%, while VYM has yielded a comparatively higher 11.95% annualized return.

XLU

1D
1.09%
1M
-0.82%
YTD
5.04%
6M
5.48%
1Y
12.50%
3Y*
13.79%
5Y*
9.41%
10Y*
9.20%

VYM

1D
0.80%
1M
1.97%
YTD
12.37%
6M
11.19%
1Y
25.94%
3Y*
18.06%
5Y*
11.59%
10Y*
11.95%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XLU vs. VYM - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VYM
Vanguard High Dividend Yield ETF		12.37%15.42%17.60%6.57%-0.43%26.20%1.15%24.06%-5.92%16.42%

Correlation

The correlation between XLU and VYM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.39

Correlation (3Y)
Calculated over the trailing 3-year period

0.52

Correlation (5Y)
Calculated over the trailing 5-year period

0.55

Correlation (10Y)
Calculated over the trailing 10-year period

0.49

Correlation (All Time)
Calculated using the full available price history since Nov 16, 2006

0.57

The correlation between XLU and VYM shifts across timeframes, from 0.39 (1 year) to 0.57 (all time), reflecting how their relationship changes across market environments.

XLU vs. VYM - Sectors Allocation Comparison

Sectors
XLU
VYM

Utilities

100.0%
5.7%

Basic Materials

-

3.5%

Communication Services

-

3.5%

Consumer Cyclical

-

6.7%

Consumer Defensive

-

8.1%

Energy

-

9.8%

Financial Services

-

20.5%

Healthcare

-

12.2%

Industrials

-

12.1%

Real Estate

-

0.0%

Technology

-

17.7%

Utilities

XLU
100.0%
VYM
5.7%

Basic Materials

XLU

-

VYM
3.5%

Communication Services

XLU

-

VYM
3.5%

Consumer Cyclical

XLU

-

VYM
6.7%

Consumer Defensive

XLU

-

VYM
8.1%

Energy

XLU

-

VYM
9.8%

Financial Services

XLU

-

VYM
20.5%

Healthcare

XLU

-

VYM
12.2%

Industrials

XLU

-

VYM
12.1%

Real Estate

XLU

-

VYM
0.0%

Technology

XLU

-

VYM
17.7%

Compare stocks, funds, or ETFs

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State Street Utilities Select Sector SPDR ETF

Vanguard High Dividend Yield ETF

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Often compared with VYM:
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Return for Risk

XLU vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLU
XLU Risk / Return Rank: 2626
Overall Rank
XLU Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
XLU Sortino Ratio Rank: 2424
Sortino Ratio Rank
XLU Omega Ratio Rank: 2424
Omega Ratio Rank
XLU Calmar Ratio Rank: 3030
Calmar Ratio Rank
XLU Martin Ratio Rank: 2424
Martin Ratio Rank
VYM
VYM Risk / Return Rank: 8383
Overall Rank
VYM Sharpe Ratio Rank: 8585
Sharpe Ratio Rank
VYM Sortino Ratio Rank: 8686
Sortino Ratio Rank
VYM Omega Ratio Rank: 8383
Omega Ratio Rank
VYM Calmar Ratio Rank: 8181
Calmar Ratio Rank
VYM Martin Ratio Rank: 8181
Martin Ratio Rank
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. VYM - 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 High Dividend Yield ETF (VYM). 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.

XLUVYMDifference
Sharpe ratioReturn per unit of total volatility
0.81
2.37

-1.56

Sortino ratioReturn per unit of downside risk
1.18
3.37

-2.19

Omega ratioGain probability vs. loss probability

1.15

1.42

-0.28

Calmar ratioReturn relative to maximum drawdown

1.30

3.70

-2.41

Martin ratioReturn relative to average drawdown

2.80

13.81

-11.01

XLU vs. VYM - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.81, which is lower than the VYM Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of XLU and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

XLU vs. VYM - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for XLU and VYM.

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Drawdown Indicators

XLUVYMDifference

Max Drawdown

Largest peak-to-trough decline

-51.98%

-56.98%

+5.00%

Max Drawdown (1Y)

Largest decline over 1 year

-9.18%

-6.69%

-2.49%

Max Drawdown (3Y)

Largest decline over 3 years

-17.26%

-14.46%

-2.80%

Max Drawdown (5Y)

Largest decline over 5 years

-25.26%

-15.84%

-9.42%

Max Drawdown (10Y)

Largest decline over 10 years

-36.07%

-35.21%

-0.86%

Current Drawdown

Current decline from peak

-6.05%

-0.52%

-5.53%

Average Drawdown

Average peak-to-trough decline

-10.22%

-7.18%

-3.04%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.25%

1.80%

+2.45%

Volatility

XLU vs. VYM - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) has a higher volatility of 5.59% compared to Vanguard High Dividend Yield ETF (VYM) at 3.31%. This indicates that XLU's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XLUVYMDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.59%

3.31%

+2.28%

Volatility (6M)

Calculated over the trailing 6-month period

11.68%

7.81%

+3.87%

Volatility (1Y)

Calculated over the trailing 1-year period

14.66%

10.47%

+4.19%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.34%

13.99%

+3.35%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

19.27%

16.35%

+2.92%

XLU vs. VYM - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is higher than VYM's 0.04% 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%.

Dividends

XLU vs. VYM - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.67%, more than VYM's 2.19% yield.

PositionTTM20252024202320222021202020192018201720162015
VYM
Vanguard High Dividend Yield ETF		2.19%2.44%2.74%3.12%3.01%2.76%3.18%3.03%3.40%2.80%2.91%3.22%
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

XLU and VYM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLU has higher volatility (5.59%) compared to VYM (3.31%). In terms of maximum drawdown, XLU dropped -51.98% vs VYM's -56.98%.

On 10-year performance, VYM leads with 11.95% vs 9.20% for XLU. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 3.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VYM has performed better with a 11.95% return vs 9.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VYM is cheaper with a 0.04% expense ratio, compared with 0.08% for XLU.

XLU has the higher dividend yield at 2.67%, compared with 2.19% for VYM.

XLU is categorized as Utilities Equities, while VYM is Dividend. XLU tracks Utilities Select Sector Index, while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLU and 0.04% for VYM.

VYM currently has the higher Sharpe Ratio (2.37 vs 0.81), 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.

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