XLU vs. ZAP

Last updated Jul 14, 2026

XLU (State Street Utilities Select Sector SPDR ETF) and ZAP (Global X U.S. Electrification ETF) are both Utilities Equities funds - XLU tracks the Utilities Select Sector Index while ZAP tracks the Global X U.S. Electrification Index. Both are passively managed. Over the past year, XLU returned 14.00% vs 27.21% for ZAP. Their correlation of 0.83 suggests significant overlap in exposure. XLU charges 0.08%/yr vs 0.50%/yr for ZAP.

Performance

XLU vs. ZAP - Performance Comparison

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

Returns By Period

In the year-to-date period, XLU achieves a 8.54% return, which is significantly lower than ZAP's 16.86% return.

XLU

• 1D: 0.68%
• 1M: 3.33%
• 6M: 8.82%
• YTD: 8.54%
• 1Y: 14.00%
• 3Y*: 14.39%
• 5Y*: 10.38%
• 10Y*: 9.21%

ZAP

• 1D: -0.09%
• 1M: 1.43%
• 6M: 14.11%
• YTD: 16.86%
• 1Y: 27.21%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLU vs. ZAP - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XLU State Street Utilities Select Sector SPDR ETF	8.54%	16.03%	-0.50%
ZAP Global X U.S. Electrification ETF	16.86%	21.84%	1.26%

Correlation

The correlation between XLU and ZAP 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 (All Time) Calculated using the full available price history since Dec 18, 2024	0.83

The correlation between XLU and ZAP has been stable across timeframes, ranging from 0.80 to 0.83 - a consistent structural relationship.

Return for Risk

XLU vs. ZAP — Risk / Return Rank

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

XLU

XLU Risk / Return Rank: 31
XLU Sharpe Ratio Rank: 32
XLU Sortino Ratio Rank: 30
XLU Omega Ratio Rank: 30
XLU Calmar Ratio Rank: 37
XLU Martin Ratio Rank: 29

ZAP

ZAP Risk / Return Rank: 69
ZAP Sharpe Ratio Rank: 69
ZAP Sortino Ratio Rank: 66
ZAP Omega Ratio Rank: 62
ZAP Calmar Ratio Rank: 86
ZAP Martin Ratio Rank: 64

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. ZAP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Global X U.S. Electrification ETF (ZAP). 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	ZAP	Difference
Sharpe ratio: Return per unit of total volatility	0.94	1.76	-0.82
Sortino ratio: Return per unit of downside risk	1.35	2.42	-1.06
Omega ratio: Gain probability vs. loss probability	1.17	1.30	-0.13
Calmar ratio: Return relative to maximum drawdown	1.53	3.78	-2.25
Martin ratio: Return relative to average drawdown	3.20	9.11	-5.91

XLU vs. ZAP - Sharpe Ratio Comparison

The current XLU Sharpe Ratio is 0.94, which is lower than the ZAP Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of XLU and ZAP, 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. ZAP - Drawdown Comparison

The maximum XLU drawdown since its inception was -51.98%, which is greater than ZAP's maximum drawdown of -12.38%. Use the drawdown chart below to compare losses from any high point for XLU and ZAP.

Drawdown Indicators

	XLU	ZAP	Difference
Max Drawdown Largest peak-to-trough decline	-51.98%	-12.38%	-39.60%
Max Drawdown (1Y) Largest decline over 1 year	-9.18%	-7.23%	-1.95%
Max Drawdown (3Y) Largest decline over 3 years	-17.26%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.26%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.07%	—	—
Current Drawdown Current decline from peak	-2.92%	-3.35%	+0.43%
Average Drawdown Average peak-to-trough decline	-10.20%	-2.58%	-7.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.39%	3.00%	+1.39%

Volatility

XLU vs. ZAP - Volatility Comparison

State Street Utilities Select Sector SPDR ETF (XLU) and Global X U.S. Electrification ETF (ZAP) have volatilities of 4.40% and 4.46%, 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	ZAP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.46%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	11.81%	12.07%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	14.92%	15.53%	-0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.35%	16.81%	+0.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.29%	16.81%	+2.48%

XLU vs. ZAP - Expense Ratio Comparison

XLU has a 0.08% expense ratio, which is lower than ZAP's 0.50% expense ratio.

Dividends

XLU vs. ZAP - Dividend Comparison

XLU's dividend yield for the trailing twelve months is around 2.61%, more than ZAP's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLU State Street Utilities Select Sector SPDR ETF	2.61%	2.71%	2.96%	3.39%	2.92%	2.79%	3.14%	2.95%	3.33%	3.33%	3.41%	3.67%
ZAP Global X U.S. Electrification ETF	1.61%	1.81%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XLU and ZAP in my portfolio?

XLU and ZAP 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 ZAP?

ZAP has higher volatility (4.46%) compared to XLU (4.40%). In terms of maximum drawdown, XLU dropped -51.98% vs ZAP's -12.38%.

Which ETF is better, XLU or ZAP?

On 1-year performance, ZAP leads with 27.21% vs 14.00% for XLU. 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 ZAP?

Over the 1-year period, ZAP has performed better with a 27.21% return vs 14.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLU or ZAP?

XLU is cheaper with a 0.08% expense ratio, compared with 0.50% for ZAP.

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

XLU has the higher dividend yield at 2.61%, compared with 1.61% for ZAP.

What is the main difference between XLU and ZAP?

XLU tracks Utilities Select Sector Index, while ZAP tracks Global X U.S. Electrification Index. They also come from different issuers: State Street and Global X. Their fees differ too: 0.08% for XLU and 0.50% for ZAP.

Which has better risk-adjusted returns?

ZAP currently has the higher Sharpe Ratio (1.76 vs 0.94), 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.